Cab

Lost2

I went to the Citizens Advise Bureau.
I have been off work now for over 5 months, so I will be going down to half pay soon. So I thought I had better sort my finances out.

I phoned Barclay's credit card, as there interest rate is so hight that out of a payment of £123 only £1.62 was going of the bill:eek:
I phoned them and was told by some thing that I would just have to keep on paying it and she put the phone down on me:mad:
So thats what happens when you try and sort things out before you get
in to arrears.
Anyway went to the CAB and they where fantastic.
They will be sending letters out to-day to all the people that I owe money to.
I will be going for BR as there will be no chance of me doing the work I used to.:( I have read some of the post on here and have opened another account
so my pay goes in to that. From what I have read I should not leave any money in it till after my BR,is that correct I have been sick with worry
the lady at CAB was so kind.

Merry_Gentry

Hiya Lost2 and welcome to the forum. Yes, it's a good idea to have your account ready, but make sure there's very little money in there when you go BR.

Did the CAB recommend bankruptcy? Are they going to help you complete your forms?

skylight

I would agree with opening a new account.

A fresh start with a basic account unrelated to any creditors is always the best way to go when you have made the decision. It keeps all your money "safe" as its not going into other accounts to be swallowed with charges.

The Co-Op Cashminder is the best BR friendly account.

Lost2

Merry_Gentry wrote: »

Hiya Lost2 and welcome to the forum. Yes, it's a good idea to have your account ready, but make sure there's very little money in there when you go BR.

Did the CAB recommend bankruptcy? Are they going to help you complete your forms?

Hi Merry_Gentry thanks for your welcome, yes CAB did advise bankruptcy
as far as I no the form's have been completed, but as she told me then
January was full and it would not be until February she also told me that it would cost £495 as I am not on benefits:mad:

Lost2

skylight wrote: »

I would agree with opening a new account.

A fresh start with a basic account unrelated to any creditors is always the best way to go when you have made the decision. It keeps all your money "safe" as its not going into other accounts to be swallowed with charges.

The Co-Op Cashminder is the best BR friendly account.

Hi skylight, lady at CAB told me to open account at Lloyd's to have my wages paid in. It is just a basic account :j odd thing is, that I was offered there top of the range account:eek: but then thinking about it I was not in arrears with any of my credit cards at the time.I was even offered an over draft:D
I turned down there kind offer:o

blind-as-a-bat_2

Lost2 wrote: »

Hi skylight, lady at CAB told me to open account at Lloyd's to have my wages paid in. It is just a basic account :j odd thing is, that I was offered there top of the range account:eek: but then thinking about it I was not in arrears with any of my credit cards at the time.I was even offered an over draft:D
I turned down there kind offer:o

No that is wrong LTSB are very anti BR and will close the account

This annoys me greatly that some cab workers dont know the reality of going BR:mad:

You need to open an account with the co-op, or barclays, but only a basic account.

But if you can the only safe route is to open an account with the above after BR, most that open one before are OK, but some do have problems:rolleyes:

cabvol

What happens to the bankrupt’s bank account


Freezing the bankrupt's bank account

The debtor should organise alternative ways of dealing with payments and benefits before presenting the bankruptcy petition. S/he should also withdraw enough money to manage essential expenses and deal with emergencies.

Once the bankruptcy order is made, the bankrupt's bank and/or building society account(s) will usually be frozen immediately by the bank, although some banks may allow the bankrupt person to continue using a pre-existing account.

Bankrupt debtors have reported practical problems following the freezing of accounts, for example, having no account into which benefits can be paid resulting in direct debits not being paid and the debtor going into arrears. If the debtor is paying for insurance by direct debit or standing order, the policy may lapse because premiums are not paid.

Opening a new bank account

It is important not to open a new account before the bankruptcy order is made, as this may result in the new account being frozen as well.

A bankrupt debtor may open a new bank or building society account or continue to use a pre-existing account (if so authorised by the Official Receiver) so that s/he can, for example, have earnings or benefits paid in. If the debtor uses a bank or building society account, the debtor must inform the bankruptcy trustee (the Official Receiver or insolvency practitioner). If the bankrupt debtor does not tell the trustee that s/he has assets in the account, s/he may be guilty of contempt of court.

A bankrupt debtor may have problems in opening a new account, even after the bankruptcy has been discharged. However, the bankrupt debtor may be able to open a basic bank account.

If at any time the balance of the account is more than is necessary to meet the 'reasonable' needs of the bankrupt debtor and her/his family, the bankruptcy trustee (the Official Receiver or insolvency practitioner) may take possession of the surplus. The bankrupt debtor should be careful not to let any savings accumulate in the account without informing the trustee, nor to let the account become overdrawn, since this would be considered to be a bankruptcy offence.

More information about basic bank accounts, including a comparison table, can be found in the Financial Services Authority (FSA) leaflet about basic bank accounts on the FSA website at www.moneymadeclear.fsa.gov.uk. Accessible versions of the leaflet can be obtained by telephoning the FSA helpline on 0845 606 1234.

The link will take the adviser to the leaflet which explains which accounts/banks will allow a BR to open/keep an account.

the above is an extract ffrom the manual all advisers have access to the full information on BR procedures are contained within 3 files which take an adviser and client through the stages of Bankruptcy and are very detailed. Takes some considerable time for an adviser to go through all details.

So yes no excuse really for not giving correct info I wonder why adviser would suggest one bank any way, instead of giving a copy of leaflet for client to decide this is normally what happens

Lost2

Many thanks for that cabvol.
But I was advised by the lady at CAB to open a new account to have my wages paid in to. Do I have to tell them about this account

tigerfeet2006

Do you mean tell the OR about the account? If so then yes, it goes on the forms. When you have your brief call with the OR on the day you petition then you tell them that this is the account you have opened for your BR. Most OR's will say they have no interest in this account and they will notify the bank of this. Lloydds will freeze and close it but Co-op are very BR friendly and say thanks for letting us know and carry on.

In the last year we have only heard of 2 Co-op accounts closed and that wasn't the Co-op that was an over zealous OR, both from the same OR's office, Brighton I think.

blind-as-a-bat_2

Lost2 wrote: »

Many thanks for that cabvol.
But I was advised by the lady at CAB to open a new account to have my wages paid in to. Do I have to tell them about this account

I was with the TSB Pre BR, and they made it plain they did not tollerate BR's, ok things may have changed in the last two years, but i would not risk it if it where me.

To be honest i dont trust any bank anymore, but at least the co-op seem open and honest regarding BR, and dont judge you for your discision to go BR, so out of a bad bunch that must give them some brownie points;)

Lost2

Thanks for that blind-as-a-bat and tigerfeet2006


I only ask as I have just had to write a letter to my boss to have
my wages paid in to the Lloyd's account, so I will have to write
to them again to hopefully to another account
They will think am mad :eek: :rolleyes: