Bancruptcy worries

VeraG

I am about to go bankrupt . As i am a single mum working part time and living in a rented house i am worried about my bank account, which i have just opened in order to escape from Barclays as i have a large overdraft with them and a loan. Im worried because the new account i have at Lloyds tsb will be frozen and i have my wage, tax credits and hb paid in to there. What will happen if they take the small amount of money thats in there to pay my rent which i save up over the month??
Please help

Dez-Titute

Hi Vera,

Re accounts follow the link

http://forums.moneysavingexpert.com/search.html?searchid=31900219

as regards money in accounts any surplus get it out you need to have a back up and theres also the court cost

Hope all goes well DEz

VeraG

hello, i dont have ant surplus, its just what goes in week by week and as my rent comes out once a month im worried if they take the little i have then il be in trouble with my landlord which so far im not!
Also, Do you have to go to court? what happens in there? And what happens after that? i am selling my car to get the £500 fee together.

Dez-Titute

Don,t get upset Vera,
you will get all the support you could wish for, but to help you we need more information.By posting your SOA it could be established if you are getting all the benefits you are entitled to,give advice on where you could save money but also whether BR is likely to be the best option

Chin up and just keep posting those questions

BIG HUGS DEZ

peachyprice

Hi Vera,

The OR won't take the money you need for living, the worst that could happen is that Lloyds freeze or close the account. When you go BR the OR will ask which account you're using for day to day stuff and will write to the bank to say they have no interest in the account. If Lloyds have frozen the account they will unfreeze it when they get the letter, if they close it they will send any money in it back to you.

Lloyds aren't particulary BR friendly and will most likely close the account. The best thing to do would open a Co-op cashminder account the day you go BR, or a few days before, and change everthing over to this account. if you don't have your new account details in time for your tax credits and HB to be paid just give the tax & benefits people a call and they will hold it until you have the details.

HTH

Dez-Titute

Thanx Peachy,

I think I remember reading that tax credits & HB can be paid manually and collected from the post office until account sorted.
Correct me if im wrong

peachyprice

Yes they can Dez, but they're not keen on doing it.

I must say they're pretty quick to pay once you give them your new details though.

VeraG

I forgot to mention that im am currently been helped with all this by the citizens advice, but i wish i had asked more questions as the day has gone on and ive been mulling it over in my head. Thanks to you all, it has been such a stressful day! And you are all so helpful and supportive.

Dez-Titute

VeraG wrote: »

I forgot to mention that im am currently been helped with all this by the citizens advice, but i wish i had asked more questions as the day has gone on and ive been mulling it over in my head. Thanks to you all, it has been such a stressful day! And you are all so helpful and supportive.

What did CAB advise??


Vera call it a day for now let your brain wind down .theres a drink for you behind the bar in the Bankrupt INN

VeraG

Well my first 3 visits they advised me to make token payments, but today they told me this could only ever be temporary and my best option was to have all the debt wiped by bancruptcy. Although this does seem the best thing to do it just seems so drastic!
A large glass of red wine would make me feel much better!

Dez-Titute

See you in the INN