Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

By rosie-jim
#464333 :?: please can some one advise us. We went bankrupt on Tuesday 11th Feb - so still very raw to us.

My husband and I had a business that was closed on the 11th too. Now that business had no debts BUT we are literally expecting an invoice to be paid with in the next few weeks.

Will the O/R's take this money or will we be allowed to keep it.

This invoice was the money that we'd of paid our wages out of and paid the courier fees. (courier fees have literally today come out of a frozen account!! SO i dont expect they'll be happy about that)

Does any one have any advice? DO we not tell them the money is due in? We're only taking a £1000 but its still large enough to care i would imagine.

We literally have £122 on us... and that is it. NO money in the banks as theyre frozen now. Our intial meeting with the O/R's isnt for approx 10 days time.. We're scared as hell and worried as £122 to last us.

THank you for your time.
Rosie and Jim
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By TalbotWoods
#464383 Hi Rosie and Jim

I'm sorry but you will not like this

You MUST phone the ORs office on this first thing on Monday, as they are the only people who can authorise banks to release funds from bank accounts that have been frozen due to your bankruptcy.

If you can show that funds are needed for day to day living, then the OR can authorise if they agree with your submitted I&E.

With regards to the Courier Fees, unless your business was a completely separate Ltd company, with completely separate bank accounts, if the work was for work prior to you bankruptcy then they would be treated as a normal creditor.

If the business was a partnership trader business (Not Ltd), then all the accounts would fall into the bankrupt, irrespective of if it had debts or not.

All this should have been explained to you when you took professional advice before entering into bankruptcy, however the Insolvency publish and excellent booklet that covers this.

The Insolvency Service Booklet "What will happen to my bank account" can be found here: ... ccount.doc

Please note this opens a Word Document (.doc)