Bank account and Bankruptcy

crowman19

Hi

I'm 90% sure that I am going to petition fro Bankruptcy in a couple of months when I've got the funds together.

I was speaking to CCCS today for some advice and am not too sure where I stand regarding bank accounts.

I was originally under the impression that it was the OR who froze all your bank accounts when you are made BR.

Today the way I understood it is that it is down to the individual bank whether they freeze your account or not.

I also got the impression that I could open either a barclays or co-op basic account and have my wages paid into it and also DD coming out staright away before going BR and that the accounts wouldn't be frozen.

Since then I have read the sticky thread about bank accounts and it appears that you shouldn't open one until after you have been made BR.

I'm confused as to which way I should go about it. It would be so much easier if I could open a basic bank account now and transfer wages & DD's to it before going BR and everything else is frozen.

Is there a chance that these two basic accounts can be frozen when made BR ?
Should I wait unitl after BR to open an account (although this presents many problems regarding wages/DDs) ?

Thanks for any advice.

fiveyearplan

Hi and welcome! You can open your basic bank account pre bankruptcy and have all your direct debits and wages etc set up. The only place I have heard that they will close it is if you live in Brighton - Brighton ORs don't seem to like accounts that were set up pre BR. I opened my Coop account 5 months prior to BR and it wasn't frozen. I would however advise you to have close to a nil balance on the day of BR in case the OR decides that is spare cash and takes it (unlikely but it can happen).

crowman19

fiveyearplan wrote: »

Hi and welcome! You can open your basic bank account pre bankruptcy and have all your direct debits and wages etc set up. The only place I have heard that they will close it is if you live in Brighton - Brighton ORs don't seem to like accounts that were set up pre BR. I opened my Coop account 5 months prior to BR and it wasn't frozen. I would however advise you to have close to a nil balance on the day of BR in case the OR decides that is spare cash and takes it (unlikely but it can happen).

So on the day of BR does it all happen that quick regarding freezine of bank accounts?

I imagined it would take longer for the banks to make decisions.

Thanks

fiveyearplan

Most people's basic account isn't frozen at all.

crowman19

I'm a bit confused as to when you meet with the OR.
Is it on the day you go to the court to petition for your bankruptcy ? or do you just meet with them when you have your interview ?

As to how long it takes to freeze your bank accounts do they let the banks know on the day of bankruptcy to freeze your account ? or do they just tell the bank on the day of bankruptcy and it is the banks decision as to whether it is frozen or not ? or is it when you have the OR interview ?

Thanks

crowman19

Also do I need to tell Barclays now when opening a Cash Card account that I am going to be petitioning for bankruptcy ?

Thanks

philnicandamy

crowman19 wrote: »

I'm a bit confused as to when you meet with the OR.
Is it on the day you go to the court to petition for your bankruptcy ? or do you just meet with them when you have your interview ? you'll have a quick telephone conversation on the day of court to discuss any current probs...the office would then send you an appointment for interview at a later date along with a welcome pack explaining bankruptcy etc

As to how long it takes to freeze your bank accounts do they let the banks know on the day of bankruptcy to freeze your account ? the OR has up to 8wks to inform creditors from the day of your BR so very unlikely they'll speak to the bank on the same day...most banks will see the advertisement in the London Gazette anyhow even before the OR informs them...my barclays account took over 5mnths to close! or do they just tell the bank on the day of bankruptcy and it is the banks decision as to whether it is frozen or not ? yep at the end of the day its the banks that freeze an account NOT the or...for some reason banks get scared when they hear the word bankruptcy! or is it when you have the OR interview ?

Thanks

Telling barclays about your upcoming BR? well its an idea to tell them although NOBODY says you have to & make sure its a BASIC account they open NOT a regular account (because like mine they'll close it soon as your BR)

HTH