Empty my account!!

AAW_2

A few people have been saying that the day before I go bankrupt I should take all of my money out of my account. What about the money thats in there to cover Direct Debits, Standing Orders, Petrol, Shopping etc which will all be included in my SOA?

fiveyearplan

I would leave the minimum for the dd/so that are going out within the next couple of days after your BR. You can pay for everything else with cash until you get the all clear from the OR that you can use your bank account. If possible plan your BR around a time when you don't have anything going out of your account - I realise it isn't always possible though.

Be prepared to lose any money in your account regardless of if it is needed for dd/so. This is unlikely to happen but just so you know it can happen.

tmcd01

You are not allowed to take any money out of your account after being declared br. Its most likely that your account will be frozen and then closed. You need to set up an account with Co-op or barclays for after br.

AAW_2

fiveyearplan wrote: »

I would leave the minimum for the dd/so that are going out within the next couple of days after your BR. You can pay for everything else with cash until you get the all clear from the OR that you can use your bank account. If possible plan your BR around a time when you don't have anything going out of your account - I realise it isn't always possible though.

Be prepared to lose any money in your account regardless of if it is needed for dd/so. This is unlikely to happen but just so you know it can happen.

That seems crazy to me. You show them a SOA and prove that the money is in there to cover the SOA and yet they take the money. Surely thats not a fresh start but just setting you on your way in debt with the Gas/ Electricty/ Water/ Insurance etc........:eek: :eek: :eek:

fiveyearplan

tmcd01 is correct that you cannot use your bank accounts once BR as they then belong to the OR. This is why it is suggested to take out all your money before BR. Most people however speak to their OR on the day of BR (I didn't as it wasn't the procedure in the court I went BR) and that is when you would tell them you have set up a basic account in anticipation of BR. They should say they have no interest in it and you can use it. There have been a very few cases where the OR has not allowed them to carry on using the account though which is why I always recommend taking out all your money first just in case. No point in having to go through the argument of why you need the money etc. Just spare yourself that one headache.

fiveyearplan

AAW wrote: »

That seems crazy to me. You show them a SOA and prove that the money is in there to cover the SOA and yet they take the money. Surely thats not a fresh start but just setting you on your way in debt with the Gas/ Electricty/ Water/ Insurance etc........:eek: :eek: :eek:

The OR won't necessarily have seen your SOA on the day of your BR. In any event your SOA hasn't been accepted at that stage. Just don't chance it. If you can avoid it, do so.

AAW_2

tmcd01 wrote: »

You are not allowed to take any money out of your account after being declared br. Its most likely that your account will be frozen and then closed. You need to set up an account with Co-op or barclays for after br.

I have already set up a co-op cashminder account. This is the account I'm going to have my next 2 wages paid into befor the bankruptcy.

startagain_2

AAW wrote: »

That seems crazy to me. You show them a SOA and prove that the money is in there to cover the SOA and yet they take the money. Surely thats not a fresh start but just setting you on your way in debt with the Gas/ Electricty/ Water/ Insurance etc........:eek: :eek: :eek:

AAW - Who are you banking with at the moment?
Have you, or are you intending to open a BR friendly account with the Co-op or Barclays before BR?
If you do that, you can transfer your dd'ss and so's before BR.

SA

AAW_2

I'll take all my money out then. Will the OR not wonder why I have empyied the account?

Will he/she not think I'm up to no good?

startagain_2

AAW wrote: »

I'll take all my money out then. Will the OR not wonder why I have empyied the account?

Will he/she not think I'm up to no good?

Nope, we have all done it.....

I had a small pile of cash at home to pay for all my food, petrol and household stuff for a month while I waited for my BR date. You have to live and feed yourself, don't forget!

SA

philnicandamy

ditto....same here took cash out & the O/D to the max before my BR date....the OR didnt question