Benefits & Bankruptcy - Will they take money from the benefits?

Bargain_Rzl

I remember sometime last year there was a poster called Jumanji who was going bankrupt, somebody on here advised her that there was a charity which might be able to help out with the payment of the bankruptcy fee.

Can't remember detail but you might want to search for it.

Conor_3

yorkiepudd wrote:

the only issue I can see is his bank accout (Natwest current plus I think) being frozen - all his benefits are paid directly into it. I'm not sure how to get round this yet.

When I banked, my bank account was frozen. Like your brother, my wages and benefits were paid into it.

Make sure there's no outstanding overdraft on the account.

Once it's decided that he is going to go bankrupt, before he does he MUST go and see the bank and explain it. It makes everything SO much easier.

His bank account will be frozen BUT if he phones the Official Receiver and explains what you've told us, the Official Receiver can unfreeze it. What he will then need to do is go see his bank again and take the phone number for the OR with him and his case number. The bank will phone the OR who can then authorise the release of the account. The bank will probably just take his cheque book, switch card and cheque guarantee card off him. They'll convert his account to a basic account with no credit facilities and no cheque book but he will get a Solo card.

yorkiepudd

That's just what I advised him to do - go and discuss it with the bank 1st. I was a little concerned though as while I was on a fact-finding mission for him (he is coming up Wed morning so we can go through it all in detail) I found a list of banks who will provide basic bank accounts to bankrupts. According to this list (think it was on the insolvency.gov site) NatWest won't give an account to a bankrupt.

jellycat40

My friend went bankrupt on Income Support only. She paid nothing back and she did lose her bank account so now she gets cash from the post office.

Louise

Conor_3

yorkiepudd wrote:

That's just what I advised him to do - go and discuss it with the bank 1st. I was a little concerned though as while I was on a fact-finding mission for him (he is coming up Wed morning so we can go through it all in detail) I found a list of banks who will provide basic bank accounts to bankrupts. According to this list (think it was on the insolvency.gov site) NatWest won't give an account to a bankrupt.

They should do. They offered me one - the Step Up account.

As far as I remember, there was legislation brought out a while back that forced banks to offer basic bank accounts to everyone.

yorkiepudd

Thanks for that Conor, worth knowing.

He has been up and I have explained it all - but I think he only understood a little of the technicalaties, so I have said I will attend any court appearances / hearings, if I am allowed.

Fran

yorkiepudd wrote:

Thanks for that Conor, worth knowing.

He has been up and I have explained it all - but I think he only understood a little of the technicalaties, so I have said I will attend any court appearances / hearings, if I am allowed.

Could you go to CAB with him before any court appearances? They will be able to explain the situation so far from what he has told them.