Paying Rent - new Bankrupt

tadsa

If my bank account is frozen - how on earth am I supposed to live? If I withdraw the remainder on my overdraft now so that I can live until other funds come in is this deemed as an offence?

I haven't gone bankrupt yet but am about to fill in the forms. This is really concerning me and any advice would be welcome.

Round_The_Bend

As others have posted previously have stated, so long as you are withdrawing money for everyday living expenses, you should not have any problems. A lot of people max out their overdraft, credit cards, etc., before going bankrupt. The OR is more concerned with blatant fraud such as taking out loans immediately prior to bankruptcy, when it is clear that BR is intended, large expenditures on holidays and othr luxuries, etc. Just take what you need and then proceed with your BR.

Good luck.

Merry_Gentry

You don't have to max out your overdraft, etc. What you need to do is open a BR friendly bank account and change your salary, DDs, etc to go into that. The OR doesn't freeze the accounts, the bank does. Co-op and Barclays tend to be the most friendly, and as long as you are not based in Brighton you can open the account before bankruptcy and get all this stuff organised before going bankrupt.

tadsa

I hadn't thought this through. I have just spoken to Debtline. I have always lived in my overdraft so have very few funds in "the black".

I need to use my overdraft to pay a month in advance on rent, utilities and also the court costs of my Bankruptcy (I haven't gone bankrupt yet but it is very imminent). The chap I spoke to wasn't that clear but can I use this overdraft for these things or will it be deemed unlawful? Obviously I know that I'm going to go bankrupt so will using the overdraft for these things be frowned upon and lead to further action being taken against me?

Merry_Gentry

How imminent? You still need to sort out a new bank account where your wages, etc can go in and your DDs come out of. If you do this now, would you be able to pay your rent, etc from your salary? As obviously at the moment all of your debts come out of the account with the overdraft?

Sorry if that's not clear - what I'm trying to say is that if you are going bankrupt, and have stopped paying creditors, set up your new bank account and live from that. Your salary would go in so you would be basically living within your means. The overdraft, etc would go into the bankruptcy.