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modensane
Junior Member
United Kingdom
214 Posts |
 Posted - 03 June 2008 : 11:46:23
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Can someone, please, explain to me what FREEZING OF ACCOUNTS actually means?
From what I gather, if you do not have a large some of money in your account, it could be left alone and you will be allowed to make withdrawals for general living expenses. In case it is frozen (whatever that means) and you have to open another one, would you not have to disclose this to the OR?
Now, obviously, if you open a new acccont, you will arrange to have your wages paid into it, and your direct debits and standing orders taken out of it. This will, in effect, mean you are still running an account; you have just changed banks - all with the knowledge of the OR.
Why, then, does the OR have to freeze your account in the first place? And in the context of BR, how does freezing of an account differ from closing of an account? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 03 June 2008 : 12:01:13
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Hi Modensane,
When your account is frozen, it means you cannot access it and no transactions will be processed. When the OR advertises your BR, it goes in your local paper as well as the London Gazette and the Stubbs Gazette. The gazettes are closely monitored by all the financial institutions, and it is standard practice to freeze all accounts on publication of your BR. If the OR has no interest in the account, they can then write to the bank to get them to un-freeze it, but this usually takes a bit of time. The best advice is not to wait and open another account elsewhere.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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modensane
Junior Member
United Kingdom
214 Posts |
Posted - 03 June 2008 : 12:46:22
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Thank You very much, Julian, for the prompt answer.
From your reply, I gather, your advice is to open a new account prior to going BR. But would one not have to declare all accounts held at the time of going BR? Why would they freeze the old account and leave the new one? Or does it mean one does not tell the OR about the new account?
And if one is slapped with a BRU or BRO, from which of the accounts are the repayments made - the old frozen account or the new one? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 03 June 2008 : 13:15:20
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Hi Modensane,
Open the new account AFTER going BR otherwise it will be frozen as well. The OR never asked me for my new account details, so I wouldn't worry.
A BRO/BRU will just keep you under the restrictions of bankruptcy for up to 15 years depending on how naughty you've been. I assume you're referring to an IPO/IPA which can come from any account you specify, but undoubtedly it will be the new one.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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modensane
Junior Member
United Kingdom
214 Posts |
Posted - 03 June 2008 : 13:58:01
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| To avoid being 'naughty' I assume you imply being honest before the OR. What other things can incur the wrath of the OR to warrant a restrictions order being imposed. A general idea about the 'dos' and 'don'ts' during the filling of the SOA forms and during the meeting with the OR will be very helpful to us all. Just a brief or short list would be very welcome. Thanking You for your tremendous help. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 03 June 2008 : 14:24:20
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Hi Modensane,
It's really about your conduct prior to BR. The key is to be open and honest. However, if you have any concerns in this respect, feel free to contact the helpline who will advise you further.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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FREEZING OF ACCOUNTS
