Bankruptsy

dittoanddaisy

I am new to the site and comtemplating BR. I have read, with much interest (4 hours) the excellent comments posted here. While I am fully aware what a big decision this is, I see very little way out. I have a few questions that I am hoping you kind people can help me out on - it helps when someone else has already been through this situation!

Firstly, I am a single mother, working part time and rely on my benefits/tax credits being paid to me. I currently have a Barclays account which will be frozen (overdraft). In addition, I have a Halifax account which I set up when my partner and I separated last year (all payments go into this account). The Halifax account has a cheque book (which I don't use) but no overdraft. Various threads have indicated that Barclays do open (quite easily) cash accounts - would I be able to apply given that my cheque account was with them? Do you see any possibility that I could continue using my Halifax account for Income and Expenditure? I am more than happy to cancel the cheque book facility if the bank agrees. If not, could you please tell me which bank will offer me a basic account the day I become bankrupt. There are various threads which I have read but would like to hear from those who have had success in opening accounts other than Barclays / Co-Op.

Secondly, I own a car with a value of around £4800 (unsecured loan). My car is used to drop my kids off at school, to get me to work and for work (when required). My work is situated in an area which lacks public transport. Has anyone been in a similar situation? If so, what was the outcome? I am not precious about the car but have looked after it well and where possible, would like to know if there is any hope of keeping it? Better the devil you know ....

I appreciate that no one can give me the answers as each case is dealt with independantly, I guess I would be reassured with outcomes of similar situations. Part of me wants to take the plunge and have the attitude 'what will be, will be', but I also have to be practical and cannot be without a bank account or car. As they say, knowledge is power! I would be very grateful for any input.

Thanks very much - I'm sure I'll have loads more questions in the next few days...

MicheH

Hi, I'm new myself and don't have the wealth of knowledge or first hand experience as a lot of posters here but I wanted to reply to you, welcome!

National debtline who advised me in my circumstances gave me a leaflet that will allow undisclosed bankrupts and the only two banks that were on there were Coop and Barclays with their basic accounts. We opted for Coop but would rather not have done so because it's a fair drive to the branch. I've been told that you can pay in money and cheques through the post office so that's not so bad. It will do for now anyway, not much option.

As for a car, im not sure you'll be allowed to keep the one you have but if you can argue that you cannot function without a car I'm sure youre allowed one around the £2000 mark ( I may be wrong, please correct me!!) I really don't think any OR will make you do without a car if you need one, especially with children. I hope thats the case anyway.

Sorry I can't be much help but I wanted to reply, i'm just learning it all myself x

Feelingfoolish_3

dittoanddaisy wrote: »

I am new to the site and comtemplating BR. I have read, with much interest (4 hours) the excellent comments posted here. While I am fully aware what a big decision this is, I see very little way out. I have a few questions that I am hoping you kind people can help me out on - it helps when someone else has already been through this situation!

Firstly, I am a single mother, working part time and rely on my benefits/tax credits being paid to me. I currently have a Barclays account which will be frozen (overdraft). In addition, I have a Halifax account which I set up when my partner and I separated last year (all payments go into this account). The Halifax account has a cheque book (which I don't use) but no overdraft. Various threads have indicated that Barclays do open (quite easily) cash accounts - would I be able to apply given that my cheque account was with them? Do you see any possibility that I could continue using my Halifax account for Income and Expenditure? I am more than happy to cancel the cheque book facility if the bank agrees. If not, could you please tell me which bank will offer me a basic account the day I become bankrupt. There are various threads which I have read but would like to hear from those who have had success in opening accounts other than Barclays / Co-Op.

Secondly, I own a car with a value of around £4800 (unsecured loan). My car is used to drop my kids off at school, to get me to work and for work (when required). My work is situated in an area which lacks public transport. Has anyone been in a similar situation? If so, what was the outcome? I am not precious about the car but have looked after it well and where possible, would like to know if there is any hope of keeping it? Better the devil you know ....

I appreciate that no one can give me the answers as each case is dealt with independantly, I guess I would be reassured with outcomes of similar situations. Part of me wants to take the plunge and have the attitude 'what will be, will be', but I also have to be practical and cannot be without a bank account or car. As they say, knowledge is power! I would be very grateful for any input.

Thanks very much - I'm sure I'll have loads more questions in the next few days...

Hi, Firstly the Halifax wont allow you to bank with them as a bankrupt but Barclays might even though you had a debt with them, worth asking as they can only say no, other than that then its the co-op.

Car - if you can demonstrate that you need your car like you say for work and children then the OR will give you an allowance to buy a car but wont let you keep your current car if it is valued at 4.8K unfortunately

hth

damoandclaire

dittoanddaisy - welcome.

its a horrible situation to be in when contemplating bankruptcy but the best thing to do is to try and not dwell on bankruptcy itself but how its going to help you get back on track going forward.

in regards to bank accounts, when i planned to go bankrupt and whilst i was undischarged, I had a nationwide account (applied for prior to going bankrupt), just a basic Cash Flex Account. That saw me through the bankruptcy and after I was discharged, I turned to LTSB as they provided a Debit Card facility. This was their Cash Account. Both accounts mentioned here came with online banking and did the usual, DDs, Standing orders, bill payments etc etc.

In terms of getting an account with Barclays (basic one you refer to) I would not do that if your current account (chequing one you refer to) is with them also, a lot happens when debt exists in one part of a company and you have assets in another aspect with them. Its better off all together to have a completely seperate provider to the ones you are including in bankruptcy.

As for the car, providing that its not a notoriously expensive one that you own outright and can justify the need for it, they shouldnt take it off you. The OR will even allow expenses to maintain it should you be allowed to keep it (that was the case with me anyways).

Hope that gives you something to think about. Feel free to ask any questions of me, or any one else here - most of us have been there at some point.

fiveyearplan

Hi and welcome DandD. You have to make a case that you need a car and it isn't just to make your life easier. Having kids to ferry about will have no bearing on the need, if you need it to travel to work you should be okay. Saying that nothing is guaranteed where cars are concerned and you certainly wouldn't be allowed to keep a car of that value.

Halifax will definitely NOT let you keep the account - they are the most BR unfriendly of all banks and will have your account frozen probably before you even get home from court! They trawl the London Gazette and Insolvency site for BR customers everyday!

Tinytim

As Feelingfoolish has said, Halifax will not want to have anything to do with you. They even froze the savings accounts my kids had (because my name as well as theirs was on the book), and the OR had to write and say he didn't consider them to be my accounts and had no interest.

Whilst many have had no problems with Barclays, I would be reticent. They have been known to "offset" by taking a credit balance from one account to offset a debit balance in another, or on a Barclaycard, and whilst the OR should be able to get them to reverse this, this may take time - very stressful if it is tax credits you are relying on. If you ignore the debit card/electron problems with Tesco online and most "pay at the pump" filling stations, Co-op can be quite accomodating

Unfortunately, as others have said, you are extremelly unlikely to be able to keep the car. The OR should permit you an allowance from the sales proceeds to buy a cheaper car, if it is essential for work (don't mention taking kids to school - this isn't seen as essential, even though in the real world it often is). However, you may be able to get a freind or relative to buy your car from the OR, and because they will not have the trouble and expense of storing and selling, they may allow a discount of its actual value.

dittoanddaisy

Hi Everyone! Thank you so much - your feedback is most useful. It's all a bit of a minefield (sigh). As damoandclaire said, best not to dwell on the negative. All said and done, it would appear you need nerves of steel to take the 1st step! ... And good timing to re-arrange bank accounts! I take my hat off to all of you have taken the plunge.

dittoanddaisy

damoandclaire wrote: »

dittoanddaisy - welcome.

its a horrible situation to be in when contemplating bankruptcy but the best thing to do is to try and not dwell on bankruptcy itself but how its going to help you get back on track going forward.

in regards to bank accounts, when i planned to go bankrupt and whilst i was undischarged, I had a nationwide account (applied for prior to going bankrupt), just a basic Cash Flex Account. That saw me through the bankruptcy and after I was discharged, I turned to LTSB as they provided a Debit Card facility. This was their Cash Account. Both accounts mentioned here came with online banking and did the usual, DDs, Standing orders, bill payments etc etc.

In terms of getting an account with Barclays (basic one you refer to) I would not do that if your current account (chequing one you refer to) is with them also, a lot happens when debt exists in one part of a company and you have assets in another aspect with them. Its better off all together to have a completely seperate provider to the ones you are including in bankruptcy.

As for the car, providing that its not a notoriously expensive one that you own outright and can justify the need for it, they shouldnt take it off you. The OR will even allow expenses to maintain it should you be allowed to keep it (that was the case with me anyways).

Hope that gives you something to think about. Feel free to ask any questions of me, or any one else here - most of us have been there at some point.

Were there any problems with your Cash Flex Account due to you opening it prior to BR? Seems a great idea to get it all set up in advance . ..

rog2

Hi dittoand daisy - and welcome to the 'Bankruptcy and Living With It' forum.

I can see why you are contemplating bankruptcy and whilst I fully agree that this is, probably, the only option open to you (with the possible exception of a DRO - but as we don't know the level of your debt we can't advise) I still feel that you should run your situation by one of the Debt Counselling Charities:

• CCCS - https://www.cccs.co.uk/ - tel. 0800 138 1111
• National Debtline - https://www.nationaldebtline.co.uk/ - tel. 0808 808 4000
• A Debt Adviser at your local CAB

This is only because they can give you free and professional advice, which we can, and will, support regardless of your decision.

In answer to your question about the car - this is one of the most inconsistent areas that we encounter on this forum. You have given convincing reasons to prove that you 'need' a car - no doubt of that. The concern is really whether the OR will let you 'keep' your car, or, as has happened, 'sieze' your car, in which case he would make you a 'cash' payment in order that you could purchase a 'cheaper' vehicle.
It is difficult to say what the 'cut-off' point is, in terms of value - some posters have been allowed to keep cars of, or around, a similar value to yours, whereas others have had cars worth less than £1000 'siezed'. It really does depend on the OR.
You say that the car is being 'purchased' on an unsecured loan? If this is 'Hire Purchase' then the OR will, probably, have no interest in your car and, providing you can continue to make the HP payments, you will probably get to keep the car.
Lots of 'ifs' in there I'm afraid, but I do hope it works out for you, and I would, again, urge you to talk to one of the above charities for more specific advice.
Good luck.

damoandclaire

dittoanddaisy wrote: »

Were there any problems with your Cash Flex Account due to you opening it prior to BR? Seems a great idea to get it all set up in advance . ..

hiya,

no problems at all. by that point obviously my credit rating was pants anyways, but the application was done online, went in with my ID and that was that pretty much it. CAB, who helped me process my BR said not to include it in the bankruptcy (as it had no credit on it) and it was fine.

dittoanddaisy

Brilliant - thank you very much (will do it that way then!) One down!