When you go bankrupt...

shellsuit

And they freeze your bank account/s, what happens to any state benefits that get paid into them as that is the only money I have to live on for me and the kids and they take that long to sort payments out anyway, I'm scared I'll be left with nothing to support us.

If you hold a basic bank account, would they still freeze that if you can prove only benefits go into it?

How long do they freeze the accounts for?

Sorry there is so many questions, but this is really worrying

bluezone

When you fill inthe bankruptcy forms you are asked which a/c has your wages etc paid into it and if you cant make other arrangements they (the OR) will ask you if you require that a/c to stay open (so long as you dont owe that bank lots of dosh)

Once bankrupt you are best to open a basic bank account if your other a/c has been frozen. Once frozen its gone so I'm told

I hope this helps

Macduff_3

The Official Receiver will release the money you need to live on - they do not expect you to live on fresh air! They only freeze your account so that they can get an idea of what you are able to pay (if anything) towards your creditors and to stop you taking out any lump sums (eg redundancy payment) that would go towards your creditors.

bluezone

they will release it if its under £250 and is needed for you to live on

shellsuit

I only hold an HSBC basic bank account and only have benefits going into it.

I'm worrying what will happen if and when they freeze it how I will have access to the money because I don't know how long they freeze them for.

jellycat40

I went bankrupt in May this year. All I had were my benefits going into my bank account. The OR did take my cash card but told the bank that they could allow me to keep my bank account as he had no interest in the benefits. I had to go into the branch for about 6 weeks to get my money while it got sorted out.

I did not owe my bank any money though, it maybe different if you do. It is up to the bank if they let you keep the account going.

Louise

fatbelly

Hi

If there's a small positive balance in it and youve declared on the Bankruptcy form that it is used for benefit income, then it is likely that the OR will not freeze it.

But your branch might! It's worth asking, anonymously if you like, what their attitude is. I phoned LTSB on this last week. It appears that LTSB do not have a bank policy and their call centre referred my question to the local branch. They said that they follow the OR decision, i.e. if the OR doesn't close it, neither will they.

shellsuit

jellycat40 wrote:

I went bankrupt in May this year. All I had were my benefits going into my bank account. The OR did take my cash card but told the bank that they could allow me to keep my bank account as he had no interest in the benefits. I had to go into the branch for about 6 weeks to get my money while it got sorted out.

I did not owe my bank any money though, it maybe different if you do. It is up to the bank if they let you keep the account going.

Louise

I only have a cash machine card and HSBC won't let you draw money over the counter with the account I have, so if they take my cashcard I'm buggared!

I don't owe HSBC a penny, I only set the account up in May when my ex left me so I could get benefits paid into it.

shellsuit

fatbelly wrote:

Hi

If there's a small positive balance in it and youve declared on the Bankruptcy form that it is used for benefit income, then it is likely that the OR will not freeze it.

But your branch might! It's worth asking, anonymously if you like, what their attitude is. I phoned LTSB on this last week. It appears that LTSB do not have a bank policy and their call centre referred my question to the local branch. They said that they follow the OR decision, i.e. if the OR doesn't close it, neither will they.

Wonder if it is worth popping into my branch to see the manager to ask him what would happen?

When I set it up he knew why I was setting it up, because of benefit payments and my ex leaving me etc (because the other accounts I held/hold are joint ones and I have nothing to do with the money in them now which can be proved if needed by ex's wageslips)

jellycat40

Don't take your cash card with you to the OR interview. i get the feeling that If I didn't have mine then she wouldn't have taken it. The bank were baffled as to why she would.

However, I only have a cash card to use through the wall, however the bank did say that I could go into the branch to take out cash under the circumstances. Alternatively, open another account like a saving account and get your benefits paid into there. Woolwich do one that you can draw from a machine or in the branch. Benefits can be paid into it.

There will be time to do it. I took nearly a year after ceasing payments to creditors to go bankrupt and i owed 130k.

Don't panic.

Louise

shellsuit

Louise, a silly question I know, but whats the first thing I need to do when I'm ready to go BR?

Do I need to get a form from somewhere/do I need to pay to get the form etc?