Considering Bankruptcy but need some help

Rob57

Hi
we have been dealing with a debt which has spiralled out of control over a period of about 9yrs, due to gaps in work and illness(I was self employed)We eventually went with CCCS who handled our case, but more problems reduced our income to a level which CCCS said was too low for them to be able to offer any money to our creditors. We have continued to pay a very small amount to the creditors ourselves but feel it can't go on, so are now considering bankruptcy but have a few concerns.
We have debts of over £50K, live in rented accomodation in a rural community, and have no assets other than 2 cars, valued at £2000 and £1000, which we need for commuting to work.

My elderly Mother(90yrs) has an RBS deposit account (about£6000) which she has used to save money for her final expenses, but she wanted my name on it as well, so I would have access to the money when the time comes.
Only thing is the account name is D&R ..... the R being me, so I suppose it's a joint account, will this be included in the equation if I declare bankruptcy, or will her money be safe? I don't really want to worry her, or involve her in this bankruptcy process.


Thank you

fiveyearplan

Hi and welcome!

I would get the account name changed. You could get her money safeguarded by you being a trustee on the account and only if the account is in a BR friendly bank ie, Halifax will close down any account that you are listed on.

It is important that you safeguard her money because if you keep it as a joint account the money could be taken by the OR - I wouldn't want to leave it to chance and risk the money.

Or, you could have the account made whereby you can access the money but it isn't a joint account.

Rob57

Hi
Thanks, but how do I know what is a 'BR' friendly bank? as I said this account is with the RBS.
Trouble is she lives on her own, in a small town with only 2 banks, the BofScotland and the RBS, so she has little choice.
I vaguely remember them saying at the time, that the only way I could have access to the account was for it to be in joint names, so how can it be changed so that it's only in my Mother's name, but I can still have access?

copier_guy

http://www.direct.gov.uk/en/Governmentcitizensandrights/Death/Preparation/DG_10029468

As 5 said its best to safe guard your mums money.

wayforward_2

Co-op cashminder accounts are BR friendly and accessible throught he post office so you don't need to be near a branch

kew63

To look after an older persons affairs including bank accounts you want Power of Attorney. Check with someone like National Debtline but cannot see any reason why if you had this, it would mean your mother's bank account would be part of BR.

But very important to get this all in place before BR.

Here's some info:

http://www.direct.gov.uk/en/Pensionsandretirementplanning/HomeAndCommunity/Carers/DG_10026855

All the best & good luck :-)

Rob57

Hi
That sounds interesting, but would I be allowed to hold that position if I'm bankrupt? bearing in mind the other things a BR isn't allowed to do, it would seem strange if one was able to take charge of someone else's financial affairs!