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sorting out my life
Starting Member
9 Posts |
 Posted - 16 May 2012 : 13:11:45
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| Hey, basically I have a court date early June to declare myself bankrupt, after my IVA has failed. I'm working my way through the forms and am confused about the bank account situation. I work full time and have lots of direct debits and child benefit that needs to be paid into a bank account. When is the best time to open a new account to ensure smooth payments ie before or after my court appearance? also can anyone recommend a good account that I can have online banking with as I have found that a really useful tool to keep on top of my incomings and outgoings. Any help and support would be so much appreciated. Thanks all xx |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 16 May 2012 : 13:29:35
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Hi and welcome.
I would open an account now before your BR. The Co-op cashminder comes highly recommended (apply on the phone or in branch) I think Barclays are BR friendly as well.
Make sure it's not an account with any of your creditors.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 16 May 2012 : 13:29:43
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Hello there, and a warm welcome to the forum.
There is nothing to stop you opening a new basic account now, or provided you owe no other monies to the account you have been operating through the IVA (ie old loan or credit card with the same bank) this account can be continued with, you do not have to close the account because of the bankruptcy. The majority of clients i assist post IVA through bankrutpcy continue with the existing account.
If you wish to open a completely new account the Co-Operative Cash minder comes highly recommended as does the Barclays Basic and Natwest basic account - both the Barclays and Natwest have online banking etc and all can be used for direct debits and have cash cards etc
With regards to the account you are going to continue to operate (or open) I personally do not list this account on the bankrutpcy forms, only accounts previously held which had an overdraft etc shouldbe recorded on the bankruptcy forms. You just tell the Official Receiver when you have been made bankrupt and have your chat, that you have another bank account that you operate for income/ bills purposes. This saves the account having to be unfrozen, if frozen in error on the making of the bankrupty order (the OR will freeze all accounts listed on the forms)although there is no problems in having the account frozen then unfrozen, it can cause a few hiccups if payments for things such as rent or utilites are due, and i would not like anyone i have assisted or provided advice for to be without access to their accounts and monies for the up to 5 days it can take to 'unfreeze'
Hope this helps, Melanie
Melanie Nicholas CertDR
30+years insolvency experience - 23 of which in the Insolvency Service and the past 8 years with a number of IP firms.
If I can be of any help to you in any way or answer any queries, concerns or worries you may have, or with completing the forms for bankruptcy, please do not hesitate to get in touch -I can be contacted via the experts tab
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 16 May 2012 : 13:32:08
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Hi, I also recommend the Co-op Cashminder, it has online banking. I'm sure Barclays stops the online banking once you're bankrupt, as this has been mentioned recently on here.
Open it prior to bankruptcy and get all your benefits, wages and direct debits transferred over.
Or ask your current bank if you can keep the account.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp |
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sorting out my life
Starting Member
9 Posts |
Posted - 16 May 2012 : 16:35:42
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| Thanks for you advice, but I am slighlty confused by Melanie's response. On the BR form at section 5.2 and 5.4 it asks for details of bank accounts that I hold cards for - but from your reply it seems that I should not list my existing account - I don't want to do anything that may be construed as hiding anything so I am unsure as to whether or not to list my existing bank account. There is not a great deal of money in it as everything I earn gets paid out by the end of the month and it would be a great deal easier if I could keep my existing account, it is not overdrawn (and never has been), but your advice seems to conflict with what the form is requesting me to provide. Further clarification would be appreciated. Thanks x |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 16 May 2012 : 17:26:09
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Hi,
Yes, you need to list all bank accounts you have or have had in the last 2 years regardless of whether they are in debt.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp |
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debtinfo
forum expert
2826 Posts |
Posted - 16 May 2012 : 18:09:44
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Yes vicki is correct. ALL accounts must be listed.
As you can see from the question asked "5.4 Please list any bank, building society or National Savings accounts you hold, or have held in the last two years, including any joint, business or dormant accounts."
this includes all acounts currently open and any that have been closed down in the last 2 years. It is not just those with an overdaft and the OR does not usually freeze accounts. What they do is close all accounts except the one for your regular income (hence why there is a box to tick on the form for that purpose)they also ask you when you first speak to them if you want an account left open. They then send a letter (bank 2 op1) to the bank asking them to keep the account open.
Do note though that the bank has the final say on allowing you to bank with them which is why we recommend a bankrupt friendly account such as the co-op.
Also just to point out, what confuses people is that sometimes the bank find out first that you have gone bankrupt before the OR contacts them and they freeze them themselves until they get word from the OR to be on the safe side. Therefore it is sometimes better to keep enough money on you for a few days in case that happens |
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debtinfo
forum expert
2826 Posts |
Posted - 16 May 2012 : 18:10:18
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| sorry viki not Vicki :) |
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Confused about bank account section of bankruptcy form
