bankruptcy and new bank accounts

brendang_2

hi i was wondering if anyone could advise me on the procedure regarding bankruptcy and bank accounts,i.e i set up a new bank account before i decided to apply for bankruptcy,as instructed, do i tell the court about this new bank account(its where my wages get paid into) and /or what are the actual implications regarding bankruptcy and bank accounts as my hearing is on monday and im worried about the account being closed even though there is no saving or anything else left in it every month virtually

jesster_2

Your existing bank account will be frozen and you will need to open a basic bank account after your hearing. You'll want to open one with a bank to which you don't currently owe any money.

There are several banks and building societies which offer basic accounts, including co op and Nationwide... natwest does offer a basic account, but is starting to turn down undischarged bankrupts, as it has changed its wording to 'you MAY be turned down for a step (basic) account if you're bankrupt'.

There's a list of them at the insolvency website and I think also in your bankruptcy pack?

It can take a couple of weeks to get this sorted, so it's a good idea to make sure you have a little bit of cash to see you through until things start moving.

Good luck for monday.

brendang_2

cheers for the reply,but i thought my new account(it is only a basic bank account) would be ok as i dont owe this bank any money,or is it as you say i need to sort a totally new account out after the hearing,cheers

IN_LIKE_EVERYONE_ELSE!

You have to disclose all bank accounts on your statement of affairs. The O/R may allow an account to remain open, however, the bank may decide to close it. Depends on your circumstances and the mood of the official receiver and the mood of the bank.
Good luck.

brendang_2

cheers again,im at a loss now as i thought opening a totally unrelated bank account(in regards to my debts) would of been fine as at the time 2 months ago ,the CCCS told me to open a new account before filing for bankruptcy

IN_LIKE_EVERYONE_ELSE!

Why would such a highly respected debt management company advise that? Did they advise bankruptcy?

Addicted2Chocolate

does not depend on the mood of the OR. i make bank decisions every day and dont think PMT has ever effected a decision! Basically section 5.4 you must disclose all bank accounts and put both account number, sort code, and balance as of date of bankruptcy hearing, and tick box if your salary/benefits are paid into the account.
When OR gets the statement of affairs they will decide what type of letter to send to the bank. The OR is legally required to notify all banks where accoutns are held of the bankruptcy order.
If: account is in credit and used for the receipt of income, they will send a letter saying account may remain open. the letter will also confirm if credit balance or part of it is to be claimed by the oR. the OR will not normally claim any salary or benefits. The letter states it would be of help to the bankrupt for the acocunt to remain open.
If the information is incomplete, eg no sort code, balance not stated, or if account is overdrawn even by £1, then different letter will be sent, there are 3 versions of the letter (no info required, copy statements required, confirm bank abalance etc) but the account will be closed, and any credit balance remitted to the OR.
If account is in credit then ultimately it is the banks decision whether to allow the account to continue. Some banks do not offer any banking to undischarged bankrupts, eg Abbey, they will close all accounts.
so make sure there is a credit balance and you complete section 5.4 (and whole of the S/A) fully. Maybe contact your bank to determine their policy.

brendang_2

cheers again, so i make sure my account is in credit no matter how small the amount and then wait for the decision as to wether i still have a bank account,as i stated previously it is only for my wages and working tax credits that it is used and there is rarely anything left at the end of any given time,thanks for all your help guys

jesster_2

if you don't owe that bank any money then it'd prob be ok i reckon. Someone who knows better will be along to advise soon!

jesster_2

ah, and there they were - A2C timely as usual

brendang_2

thanks all ,might sleep better tonight now