Credit balance on Bank current account

stephen53

I'm considering filing for bankruptcy in the near future. When I saw CAB back in Nov 2009 and they advised me to cease making payments to unsecured creditors, I had about £4k on my current account which I've since moved to a new account with the Nat West. Since Nat West won't allow me to have accounts after bankruptcy, I'll need to open a futher account probably with the Co-op.

I'm aware that any credit balances would become an asset in the bankruptcy. With hindsight, I should probably have drawn out a few quid a week and stuck it in my back pocket, but I haven't been thinking all that clearly and the money is still in the account. In fact, it's increased a bit as I've been living on next to nothing for the last three months.

I presume that questions are likely to be asked if I take it out now. I don't want to do anything which would get me into any more trouble than I'm already in, but a bit of rainy day money would be very reassuring, especially as it's fairly likely that my current level of benefit won't be maintained (I'm on Employment & Support but I gather that hardly anyone meets the medical criteria to stay on it).

I'm also slightly confused about banking arrangements generally. There seems to be a bit of conflicting information about whether it's acceptable to set up the new account in advance of the day or not. Am I right in thinking that this is down to the individual OR and if so, how do I find out what the practice is in my area? I'd love to get income and D/Ds sorted out in advance but obviously it's pointless if the account then gets frozen with the rest.

Any advice gratefully received. I'm pleased to have discovered the site by the way.

skylight

Withdraw some now??? ESA is not a lot to live on and just because you are a BR, it does not mean that you are expected to live on the breadline or go without. Do you need money for rent/deposit etc on a new place??? Can you use the money for something else that is essential?? Washing machine, fridge etc?? New bed??? Help with care (as on ESA). Hand the cash to a trusted relative.


Most people here seem to have set up a new account prior to BR to ensure that all dds etc are sorted out beforehand. If the account has no overdraft facility etc so therefore no debt, then ORs tend to leave them be, it then comes down to whether the bank wants to let a BR have an account and its at this stage that most banks (barr the Co-Op) tend to let us down.

stephen53

Thanks for the reply, Skylight. There are a few things I could use it for. I'm just worried about any likely comeback if I did so.

I don't suppose there's any way of finding out for sure about the new bank account business - I'm in the Blackpool court jurisdiction if anyone has any experience of it? I acknowledge that I'm probably being a bit of an old woman here.

skylight

There is no "sure" way. Technically the OR is supposed to close all open accounts upon your BR, but they are realists and accept that a bank account is essential these days. If you open a basic account with no debt attached to it (over draft facilities for eg) then they have no interest in the account and do not worry about it. They do write (usually) to the bank account to tell them of your BR and its at this stage that most non-BR friendly accounts get closed by the bank. Co-Op is BR friendly and don't close the account.

stephen53

Ok, thanks again.

RichesToRags

I was dealt with by Blackpool OR, they had no interest in my Co-op account and it was never frozen.

I had a little money in there which was for the coming months bills, I explained this and they were fine with it.

peachyprice

As for spending the money, if there's stuff you need buy it, just keep the receipts to show the OR what you spent it on. As long as you've spent it on essentials, not holidays or gambling or down the pub, the OR should be fine with it.

Get in a few decent grocery shops and stock up on your tins and freezer stuff, make sure all your old clothes are replaced, get some new shoes and a coat for next winter. New tyres and service for the car (if you have one). Appliances that need replacing. Boiler service. Paying your insurances for awhole year. You won't have the spare cash once BR to do this.

Anything left give to the OR.