How does the freezing of accounts work??

completemess

My husband has just had a long OR interview (his businesses were involved so not the normal phone call). The OR is writing to every bank account to inform them of my DH bankruptcy and despite my husband asking her to write and say no interest in the Barclays basic account she said she has to send them all information of bankruptcy. He said she was not helpful regarding this at all.

So, at the moment we are using my solo Abbey account and were planning to start using the Barclays joint account following today and change all the direct debits and salary/child benefit/ctc over, I plan to go BR next month so was going to get all that sorted first knowing the Abbey account will be closed.

My worry is if Barclays close the account what will happen to any money in there? I thought the OR would say she had no interest in the account. Do you think it would be worth me opening a coop account today in just my name because reading on here they are a lot more BR friendly? I wish we had just opened two separate accounts because now we will have this problem twice. My Mum said I could use her account but I can't see my employer being prepared to pay me into there.

Worried about how we will keep paying things if the account is closed/frozen for more than a couple of days - what can anyone advise?? xx

peachyprice

Hi completemess,

It's unusual for the OR not to write to your bank to say you can still use your basic account for everyday living

They do write to all the banks, but it's either to say send all the money in it, or that they have no interest in it. Did she tell your OH to remove the money he needs for living expenses?

Unless she's told them she has no interest they will send everything to the OR, so best get any money out. If barclays do close the account but don't send the money to the OR they will send you a cheque.

I think it's best to open a co-op account in your OH's name only for now, otherwise if you open a joint one you will be in the same situation next month when she will do the same with the joint account.

I can't see why your employer would mind who's account you have your money paid into, it isn't really any of their business, and in theory they only need the sort code and account number.

completemess

Thanks peacheyprice

If my OH opens a coop account now he is BR does he not need to inform the OR?? The OR will want to see him again at some point. I think the issue might be at the moment there is no money in any of my DH's accounts - everything is in my solo account - the OR didn't ask for details on that though?? She just said it's up to Barclays if they leave it open or not, they probably will. I don't understand why she is being awkward.

Do you think the child benefit and tax credits will pay into someones elses account. Really worried we will begin our new start with a bounced rent payment because of account problems x

completemess

ps my husband said she seems new - great!!

peachyprice

Any account your OH opens after BR he doesn't have to tell the OR about, not ever.

You can get CB & TC's paid into someone elses account, they just have to sign a form giving permission.

MrsWallop

In our initial OR interview, he asked if we had any accounts that wages/benefits were paid into.
I said yes, an Alliance account, that had no o/d, and was used for my CTC and CB to go into. He said that they would not freeze that account, however Alliance generally will not deal with BR customers.
I phoned them a few days ago, and they put me through to a specialist dept, and she immediately said 'thanks for info, im closing your account as of now' :eek:
Luckily i had arranged for all of the payments to be halted, so now im just waiting for my new Barclays and co-op accounts to come through........

lucy7509

peachyprice wrote: »

Any account your OH opens after BR he doesn't have to tell the OR about, not ever.

Why don't you have to tell the OR about the account, surely they are overseeing your money whilst bankrupt?

thanks
Lucy7509

completemess

That's my hubby's worry Lucy but you must be able to? We want to do everything by the book so we won't get into trouble, especially if the OR is strict.

I have phoned work, they are happy to pay into a different account as long as they send a letter in explaining they are happy with it. So I think I will have to do as you suggest Peacheyprice and my hubby use my account now until he has a new coop account, then me use his coop account while mine goes through. Thank you. Really hoping the Barclays account stays open though - it would make things so much easier!!!

I'm panicking now that the OR will definitely tell our landlord because she is so by the book. Don't get me wrong I knew bankruptcy was not going to be easy but worrying about having a roof over my childrens heads gives me sleepless nights and lots more grey hairs

peachyprice

lucy7509 wrote: »

peachyprice wrote: »

Any account your OH opens after BR he doesn't have to tell the OR about, not ever.

Why don't you have to tell the OR about the account, surely they are overseeing your money whilst bankrupt?

thanks
Lucy7509

No, the OR has nothing to do with your bank account once you are BR and doesn't oversee your finances at all. You a free to do as you wish with your bank accounts and your money, as long as you pay your IPA (if you get one) and you keep the OR informed of any change in circumstances.

The only accounts the OR has any power over are the ones included in your BR.