Hi I am going bankrupt at the end of April. Is it best to open a new bank account before my bankruptcy date or wait until after I have been made bankrupt.
I always advise individuals to open a new basic bank account before filing for bankruptcy and make arrangements for salary etc to be paid into the new account. Make sure your new account to unliked to any of your other debts. When filling in the Statement of affairs forms there is no need to list this 'new' basic account of the form where it is asking for all bank accounts held - this refers to accounts where you 'owe' money. When you have your telephone meeting with the OR's office you can inform them that you have openend the new account for your salary etc. This prevents you being in the position of having your account with your money 'frozen' on the making of the order and having to wait (sometimes a few days) to get the account 'unfrozen' - I would never want anyone to go through this process and end up not having access to their money.
Hope this helps - Melanie
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
Thanks Melanie, will the co-op not close this account once they find out we have been made BR as I have heard banks check the newspapers to see who has been made BR
Just as a note, I've already opened my co op cashminder for my salary (on melanie's great advice) - I've my BR appointment on Monday. When I phoned up I told them I was opening the account because I was planning to file for bankruptcy and they were fine about it - I'm not expecting them to freeze the account or anything
The Co-op are the most accommodating bank out there - I dearly wish all banks would follow their example, i've not ever heard a bad word said about them, and they can be so flexible with bankrupt's accounts - other banks could learn a thing or two!!
If the account is a 'new basic' account and you have no other linked debt with the co-op ou will not have the account frozen
By the way thanks for the vote of confidence Caroline, nice to see you took my advice on board - and best of luck for your future (debt free of course!!)
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
I called my bank today to ask about what would happen to my account and they said don't worry they won't freeze it as we have no debts with them and the account has been well run, but to call them the day we go bankrupt with all the details and they will then let us know if we can keep the account or if we need to open a cashminder account with the co-op. My bank is Smile though, who are the co-op really. I wasn't expecting that! They were very helpful! They even said they would help sort out transferring everything over as quickly as possible if needed!
i opened my co-op cashminder account prior to my bankruptcy and when i informed the bank they were great, no problems at all, even when i spoke to the O.R. they said 'we advise people to open a co-op cashminder account as theyre the most friendly'.
New Bank Account before or after BR
Posted - 26 March 2009 : 12:24:38
