Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By lofty
#7719 The big b is on the horizon...............one of my creditors is my current bank. I have opened a basic account with another bank for dds etc. Does anyone know, or can speak from experience, will the new (basic account) be frozen automatically, thereby requiring me to open a basic account elsewhere?
ByDavidc
#7720
lofty wrote:The big b is on the horizon...............one of my creditors is my current bank. I have opened a basic account with another bank for dds etc. Does anyone know, or can speak from experience, will the new (basic account) be frozen automatically, thereby requiring me to open a basic account elsewhere?


It will as a matter of proceedure be frozen awaiting the bank being notified that the OR has no interest in it. For interest read he has checked there is no money in it as he will take anything there. After that he will notify the bank that he has no interest and it is then that in 99 times out of 100 the bank will close it as it is policy. for this reason with only 2 or 3 accounts available to you as an undischarged bankrupt you have to be carefull not to use up one of your lives so to speak beforehand.
David
By Mel_Odious
#7724
lofty wrote:
Does anyone know, or can speak from experience, will the new (basic account) be frozen automatically, thereby requiring me to open a basic account elsewhere?


Yes. You have one less life as David put it.
What made you open a new account before you are made bankrupt?
Is there anything else you need to know before you petition as it would appear you have not taken expert advice and the Judge will almost certainly ask you if you have done so?

Mel
By lofty
#7727 Thanks David, Thanks Mel.

Re the opening of a basic bank account,,,,,,,the reason was my then current account was in such a state I had no other recourse than to open a new account, otherwise all my income would have been 'swallowed up' by the then overlimit overdraft and bills would not have been paid ( no lving expenses would have been available either) Re advice, I was in the process of transferring my dmp from gp to the cccs. My counsellor at the cccs (after interview) suggested my best course of action was to go B. I am aware of the pros and cons of this action. Hope that explains the reasoning behind the basic account.

Any comments or advice will be greatly appreciated.


Cheers. Lofty
By Mel_Odious
#7728
lofty wrote:Thanks David, Thanks Mel.

Re the opening of a basic bank account,,,,,,,the reason was my then current account was in such a state I had no other recourse than to open a new account, otherwise all my income would have been 'swallowed up' by the then overlimit overdraft and bills would not have been paid ( no lving expenses would have been available either) Re advice, I was in the process of transferring my dmp from gp to the cccs. My counsellor at the cccs (after interview) suggested my best course of action was to go B. I am aware of the pros and cons of this action. Hope that explains the reasoning behind the basic account.

Any comments or advice will be greatly appreciated.
Cheers. Lofty


OK, understood Lofty. I was just concerned you hadn't looked into bankruptcy thoroughly. Unfortunately, the basic account is sure to be frozen. Well done in ditching GP btw. There is a possibility that you may be able to keep your basic account but I wouldn't risk it and would draw any funds out and cancel any SOs &DDs.
There are only about three Basic Accounts available to bankrupts being, Nationwide Flex, Co-op Cashminder and I believe Barclays do one. The annoying thing is that Banks have been pressed by the Government tp provide Basic Accounts to all and they agreed but most of them still bar Undischarged Bankrupts which is mean really because you can't have cheques, credit cards or overdrafts, so what's their problem? It's probably that there is no profit in it for them. Bankers eh? Nicky's new c0ckney mate has a good rhyming slang for 'em.


Mel
By lofty
#7729 Thanks for that old chap, much appreciated. Will let the forum know how thigs go in due course.


Cheers

Lofty.
ByVanilla_sky
#7746 Bank accounts puzzle me

All I get in my account is my daughters CTC, DLA and CB so I was thinking of opening an account in her name after all they are her benefits to have them paid into then hopefully the OR wont touch that account
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By JaneClack
#7748 Seems logical to me - as long as you are the signatory and are not named on the account as I have seen odd things happen!! Yes, it is her money and you do not want to lose it.

It is not so much the OR in these circumstances as the bank itself which sometimes can take a few days to do it as various people on this forum will vouchsafe.
ByVanilla_sky
#7749 Thanks Sarah you have made my mind up I will do it before I go B

Like you say its Sarahs money in effect and it would take a cruel OR to deny her that

Jx
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By JaneClack
#7754 and if she is that lovely girl I saw on a picture elsewhere as a bridemaid at another pretty girl's wedding... you are blessed.
ByVanilla_sky
#7755 Sarah thats her and my eldest daughter and yes I am blessed, I have 2 beautiful daughters and a handsome son and son in law and a gorgeous grand daughter......all this at 46!?

Jane x
By liverpoolcherries
#7881 All these posts re bank accounts have made me think.

The Post Office card account which was set up for benefit claims to be put into when the Government phased out order books, is there any reason UBs can't open one of them? After all you would still need your benefit paid in somewhere even if you were UB and I wouldn't have thought they could refuse you.

I am sure one of you wise souls will be able to answer this for me.

liverpoolcherries
User avatar
By TalbotWoods
#7889 Undischargeds can open a Post office account, but other than having a cash card it is usleless.

    There are no Direct Debits, Standing Orders, Transfers,etc.

    There is no internet or telephone banking

    Cheque clearance is normally 10 working days (2 weeks in our time scale)

    You cannot have pay creditied to the account.

    The only automated credits allowed are from the DWP

    You have to pay in via post office, paying in via an ATM is not avialable


The Post office account is the absolute of all basic accounts, and even then they want to see proof from the OR that you can open an account!

I only know this because I looked at opening one when I did the deed, but thankfully the good old sponsors of my favorite TV show saved the day!

TW
By liverpoolcherries
#7894 Talbot
Thanks very much for that, I was unaware of all that. However I did think that the whole point of making people have their benefits paid into the bank was so that the poorest could take advantage of the direct debit discounts that utility firms give out to those lucky enough to have a bank account. It appears however that I was wrong.

Thanks
liverpoolcherries