Basic bank account before bankruptcy. Will it be frozen?

dezire1971

If i opened up a basic bank account before applying for bankruptcy - what happens after the application has been submitted? Will the account be frozen? Alos, what is the situation with being self employed - I need to continue my business now and during bankruptcy - what happens?

skylight

Copied from another Post I just made:
Basically, all accounts are supposed to be closed upon your BR stamping at the court. However, ORs are well aware that these days it is not a realistic thing to do, so if you have an account that is basic and you owe no money on it then they are not interested in it at all (you owe nothing and have no savings they can claim etc). However, in this situation, the bank themselves are allowed to close an account to a BR if they want to - so although the OR may have no interest and may allow you to keep the account the bank may close it - Halifax do this; you will never keep a Halifax account cos they hate BRs!

The Co-Op is the BRs friend. They love us and happily provide Cashminder accounts to us paupers. The OR should declare no interest in the account and the Co-Op let you keep it open and wont freeze it. Almost all of us here have a Co-Op account opened for this reason alone at the point of BR. In the rare case of this going wrong (cos you can never say never) then its a simple fax from the ORs office to the bank to confirm no interest in it.


As to your business - technically this is "closed" at your BR point and re-started again the day after. The amount of your business assets will depend on whether the OR will allow you to keep them or not; usually there are not many so you can. But if you were a plumber for example and needed your tools then you can keep these etc. You can still use the basic account for paying into and out of. Although it may be a good idea to try to open a basic account elsewhere so you can separate the two. You wont get a business account with a cheque book etc though.

dezire1971

Thank you Sky. I've just phoned up the Co-op and set up a basic account! It was a very easy process! I can even pay cheques and cash into the Post Office! I am on my way to normalising my life again. Cheers. :money: