Bank Accounts

Experiment626 · 17 February 2007 at 6:59PM

Quick question, as i'm considering going bankrupt, I have 2 bank accounts, both approximately £3k overdrawn, do they have to be closed if I want these to be wiped off with the rest of my debt, or do they automatically get wiped off with the rest of my debt as a matter of course.

earwig · 17 February 2007 at 7:57PM

hi all bank acounts will be closed then you would have to open another acount when you have your bankrupcty order

earwig · 17 February 2007 at 8:01PM

sorry forgot to say all acount will be closed weather there is money in them or not the overdrawn acounts get inculded in your bankrupcty the ones in credit go towards your creditor the or deals with this the coop cash minder acount is good for bankrupct as it is an electron card and you can get money out of the post office as well as the branch and atms you can also pay in money at the post office and the acount allows you to have standing orders and direct debits as well no overdraft though

tight_jock · 18 February 2007 at 12:08AM

The OR will notify your banks as listed in your petition and , generally the bank will close them.
You will need to set up a basic bank account,(barclays, the co op and one or two others will do this) if you have any DD to pay.
If you have credit in any of your accounts, I would draw it out as living expenses as long as it is not a huge amount before your hearing

tight_jock · 19 February 2007 at 10:31AM

Toots wrote:

Just being curious but if you did have a huge amount in your bank account then why would you need to go bankrupt? Wouldn't you pay it over to your creditors?

Toots

Huge being relative. ie If the OP has a couple of hundred quid that may be needed for living expenses whilst new account is sorted out.
The OR will see any withdrawals any way when they investigate the circumstances of the account.

backontheup · 19 February 2007 at 1:55PM

Toots wrote:

Just being curious but if you did have a huge amount in your bank account then why would you need to go bankrupt? Wouldn't you pay it over to your creditors?

Toots

It would depend on which creditors you chose to pay. if you gave it all to one of them it would be seen as preferential treatment of creditors, which is more problematic than keeping the money for you own essential living expenses.

earwig · 19 February 2007 at 2:03PM

if you show favour to one creditor over another the or can take it back and reisuse the payment more fairly

Bank Accounts

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