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David F
New Member
United Kingdom
58 Posts |
 Posted - 21 January 2010 : 09:11:40
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Hi All,
I am researching my options regarding going bankrupt but am unsure on how to best handle my existing bank accounts and which ones if any would be closed.
I currently have 3 bank accounts:
A/C 1. Barclays Current Account linked to and part of my mortgage (offsett) this account is £28k overdrawn and secured on my property.
A/C 2. Barclays Current Account, I use this as my main current account and have my Jobseekers allowance paid in to it. There is NO overdraft facility but there is a debit card and cheque book but NO cheque guarantee.
A/C 3. CO-OP Cash Minder. I have only just opened this after reading on here it would be best to have a separate account prior to entering BR.
I have approx. £125k unsecured debts / CCs and loans (none of these are with Barclays).
My questions is:
Would the OR freeze/close my Barclays accounts when one is part of my mortgage/secured and the other is a basic account and I do not owe any unsecured debt to Barclays?
Many thanks for any help/advice you can give.
David
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 21 January 2010 : 14:06:44
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realistically the accounts will be frozen...
the secured overdraft account may be changed by Barclays to a secured loan or suspend the account pending whether the mortgage is being paid or is the property to be repossessed
the Barclays current account will likley have to be closed but it is at the discretion of the bank not the OR
the cashminder account may be frozen but if you tell the OR that it is the account you are using or intend to use post BR then he should leave it alone
i would change the JSA so it gets paid into the COOP account
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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David F
New Member
United Kingdom
58 Posts |
Posted - 21 January 2010 : 18:49:07
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Dave,
Many thanks for your detailed response, one more question if I may.......
The £28K overdraft forms part of the mortgage, my mortgage is on interest only and each month I pay just the interest on both. I receive interest relief payments from the DWP which are paid direct to Barclays. these payments are more than the interest charged and I then get Barclays to refund me back the overpayment to my current account. If I do go BR could Barclays be funny regarding the refund of over payments and refuse to refund them to me?
If Barclays do change the od in to a secured loan would this be at the current interest rate of my mortgage i.e. 0.95% above base?
IS there a chance that Barclays could ask that the od be repaid in full once I go BR and refuse to incorporate it in to the mortgage or secured loan?
FYI - the mortgage debt including the od is £175k (with Woolwich) and I also have a secured loan with GE Money for £20k = TOTAL £195k. Both are up to date, I have never missed any payments on either. I am currently having the house valued by 3 estate agents based on a "quick" sale due to relocation. I estimate the property based on this to be worth approx. £190 to £200k.
It would be my plan to keep the house once I go BR and continue to look for work
Thanks again for your help, I really appreciate any help or guidance regarding my situation.
Kind Regards,
David |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 21 January 2010 : 19:08:50
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in order
yes barclays could be funny with you banks do that at the drop of a hat, i would suggest that you get the DWP to pay into the cashminder account and transfer the right amount into Barclays
interest rate could be whatever they decide its up to them
if the OD is secured to the house it is likely they will do something rather than be awkward as long as payments towards the secured debt are being made, more so if there is neglible equity in the property.
if there is seen to be equity in the property even only £5000 this would vest in the OR once BR and you would have to negotiate with the OR to buy the BI back
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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Bank Accounts and Bankruptcy
