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

Moderators: TalbotWoods, JaneClack

By fidel
#267083 Hi all,
At this moment in time I am thinking of going bankrupt. My wife is going to go for a DRO as she is in debt of just under £5000 and I am in debt of around £15000. I have contacted the debt advice foundation (DAF) for free advice and they have told me to go bankrupt and for my wife to go for a DRO. We only have one income (mine) as my wife does not work due to mental health problems.

Part of the advice from the DAF was to open another bank account as our Coop one was overdrawn and we also had a loan with them, the purpose of opening another account was so that the Coop had no access to our income. So I have opened a basic flex account with Nationwide on the DAF's advice, my wages get paid into and bills get taking out by DD.

So my questions are this; will I still be able to use the Flex account for my wages to go into and to pay my DD's when made bankrupt?

How long is the account "frozen" for?

Also I have seen a post on here which mentions a technical manual that the IS uses for outgoings, does anyone have a link to that? or a link to the amounts from the ONS?

Cheers
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By JaneClack
#267093 Someone else will give you the link in a minute but I would recommend working out what you are paying out for your priorities and food etc - then finetune. The OR will ask for proof of various things and if your surplus is more than a certain amount (£20) for single person they will take the lot for 36 months unless there are changes ie have a surplus of £19 and pay nothing, £21 and pay the full £21.

You may find Nationwide will not allow you to use the account as they do not give accounts to undischarged bankrupts but then too they may have a different policy if the account was opened previously.

The link will be provided by someone else as I cannot get to the insolvency site from this facility - but is part of the freedom of information stuff!
By fidel
#267113 Hi,
Thanks for the quick reply. I think what I will do before going bankrupt is speak to Nationwide first to see what they say.

I have found the manual, but I cannot find the amounts allowed for things like birthdays etc, is there a link for that somewhere?

Cheers
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By JaneClack
#267123 Birthdays - what are those? :D

Put them down and see what the OR says - money for this comes out of contingencies and housekeeping!! But put down what you spend.
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By JaneClack
#267133 If you owe under £15,000 you could do a DRO too as you obviously do not own a property (or at least your wife does not as perhaps it is in your sole name) - and if your surplus is under £50 then you would have nothing more to pay which would not be the case in bankruptcy.