Bank accounts for Bankrupts - Discussion Thread

alastairq

Any prospective or recent bankrupts - go to Co-Op and open a Cashminder account (though not until after you have been made bankrupt and after you have had your interview with the Official Receiver). Co-Op cashminder accounts can be run on-line - including setting up DDs & SOs etc, you will be given a Visa Debit card and a paying in book. You can pay money/cheques in at any post office or mail them. You can even open the account on-line or over the phone.

Absolutely right in the recommendations...however, it isn't strictly true that such an account should be opened after BR is declared and OR has been in touch.

Whilst many agencies/ contributors recommend following that action, the advice stems from people's misunderstandings regarding the various types of account out there, and which bank is BR-friendly...therefore the advice is of the ''better safe than sorry'' variety.

Apart from peculiarities of policy interpretation at specific OR offices......[Brighton being the most obvious one]....it is quite acceptable....providing the OR expresses no interest in the account contents......to have opened one or more BASIC bank accounts [with BR-friendly banks like Co-op].....prior to declaring BR.

If the account are obviously only being used for living expenses, the OR expresses'' no interest'', and informs the bank as such when telling them about one's BR status.


I had two Co-op Cashminder accounts active prior to BR...which allowed me to set up DD's, SO's, etc....without pressure of time...plus, getting salary transferred.

These accounts were noted on my BR forms, as current, and active..the OR questioned me about them at court, and was satisfied that I was not attempting to hide assets. Some weeks later I was contacted by Co-op to say they had been informed of my BR, and the accounts were unaffected.

A good source of advice regarding Co-op Cashminder accounts can be had from Co-op themselves......phone them at Manchester and ask to be put through to the department that is concerned with BR...they are very helpful at explaining what happens post BR regarding the bank accounts.



With regard to Direct Debits and on-line banking?

A problem I became victim of, regarding cancelling [and changing/moving] DD's can occur with the other party....and may explain to some extent why DD's cancelled via on-line banking sometimes need confirmation by other means.

Many large utilities have long-winded accounting systems......and often have ''cut-off'' dates for changing or cancelling DD's.......after which, the change of DD status must go to the next month/payment period.

I fell foul of this cut-off process with Orange.......whilst only changing accounts from which the DD came from, I was confused [read, not informed on the website] as to the timing.......as a result, whilst the old DD was cancelled on-line, and the new DD set up, Orange simply applied for payment to the old account.

Which was refused.....partly because I had insufficient funds in that account..[they all being in the other one.]...and partly due to my cancelling the original DD.

So, I received a snottogram from Orange, and the first of a '3 strikes' from Co-op.

I was incensed to say the least.....rang co-op and let rip.....rang Orange [in India, it seemed]....and let rip.

Co-op immediately saw how the mistake occurred and wiped the strike....[they do have discretion, if you speak to them]....Orange stopped the penalty , after much threatening..[a bit lost on the Indian phone operator...]....it turned out, my new details were received by Orange on the morning of the cut-off day....before mid-day...but obviously I was in the wrong time zone! {they took on board my complaint about lack of information regarding cut-offs on their web pages]....


all sorted in the end.....

When I banked with Barclays [yeah, I know..sucker!].....online, cancellation of DD's had to be backed up by other confirmation... obviously they didn't believe their customers!

dojoman

I opened my cashminder account 3 months before going BR, told the OR and she said she had no interest in it. Nearly 6 months in now and account has run like a dream. By the way you cannot open a cashminder account on line.

adwilliams

I didn't mean actually open it, I meant you could apply on-line and they would send you the forms.

Don't think you can open any bank account on-line can you?:think:

alastairq

there are some...apparently

dojoman

adwilliams wrote: »

I didn't mean actually open it, I meant you could apply on-line and they would send you the forms.

Don't think you can open any bank account on-line can you?:think:

Sorry but the way you worded it, it sounds like you can open it on line, also on the coop website it says to apply either by phone, or to call in to a local branch, it does not mention being able to request the forms for the account.

alastairq

In addition to my waffly missive above, I'd like to point out............................

when dealing with debt,whilst essential to contact one of the Debt Advice people [in the stickies]....one of the first bits of advice they give, is to shift one's working bank account away from those to whom money is owed.

[Thus, if one owes Barclaycard, and has a Barclay's bank account...move it!]

At this stage [invariably well before BR]...it may be an idea to sort out a Cashminder-type account or two.......in preparation?

missgem

Just wondering if you people can give me some advice! My mum and dad recently seperated after 28 years at christmas just gone, and are now going through divorce proceedings. Due to the amount of debt they are in, my dad has been to a solicitor and paid £200 for an hour chat, to see which the best option is for him, he said bankruptcy. He has told my dad to stop paying all bills now and after 3 months time thats when they can start bankruptcy procedures? Is this right? Also he has a santander account, but due to another santander account him and my mum have being a very big overdraft, no doubt it will be closed. So he needs a bank account to have his wages put in, but hes been told he wont be able to get one because of the bankruptcy, and even if he did get one, that once the bankruptcy started, the Trustee (whoever that is) will freeze the account and he wouldnt be able to draw any money etc? Is this right? Whats he meant to do then, draw all his wages out every week? x

philnicandamy

missgem wrote: »

Just wondering if you people can give me some advice! My mum and dad recently seperated after 28 years at christmas just gone, and are now going through divorce proceedings. Due to the amount of debt they are in, my dad has been to a solicitor and paid £200 for an hour chat, to see which the best option is for him, he said bankruptcy. He has told my dad to stop paying all bills now and after 3 months time thats when they can start bankruptcy procedures? Is this right? Also he has a santander account, but due to another santander account him and my mum have being a very big overdraft, no doubt it will be closed. So he needs a bank account to have his wages put in, but hes been told he wont be able to get one because of the bankruptcy, and even if he did get one, that once the bankruptcy started, the Trustee (whoever that is) will freeze the account and he wouldnt be able to draw any money etc? Is this right? Whats he meant to do then, draw all his wages out every week? x

Hmm not quite sure where the stop all bills and in 3mnths go BR info is from....continue to pay PRIORITY debts rent/elec/water/council tax/tv put other cash away for bankruptcy fees in the meantime

be best to open a co-op cashminder account or a barclays basic account, these are the only 2 bankrupt friendly banks that would offer an account no questions asked..the banks freeze accounts NOT the trustee/receiver and knowing abbey soon as they know about the bankruptcy they'll close the account in a flash

ian_h

Been looking at the Halifax on 2 fronts but would appreciate your interpretaion of their T&C's.

Easycash Account
The T&C's for this account must have been updated as it now clearly states:
"You may still be able to apply for an Easycash
account even if you have been bankrupt in the
past. For your application to be considered you
must provide us with the original bankruptcy
discharge letter showing the original seal."

So no go until I'm discharged. In the meantime been looking for a savings account:

Web Saver Extra
T&C's here say:
6.10 We can refuse to carry out a transaction if
we reasonably think that:
......a bankruptcy order is made against you
or we think that one is likely to be made;....

Which I would interpret as meaning that if a bankruptcy order is already in place then the account will be ok ???

beentheredonethatstilhere

Nope! The Halifax is the least bankrupt friendly bank there is. They have been known to even close childrens accounts were the parent is a trustee and bankrupt. They will close the account with in days of hearing you are bankrupt.