Going Backrupt

uptomyeyes1984

hi, if we were to go bankrupt can we take the £600 fee out of our overdraft, were already in it.?

skylight

Lots of people do. The ORs tend to turn a blind eye to this happening.

Make sure that you put on your BR form (the bit about explaining why your BR) that things are so desperate you were forced to take what was left of the OD to cover the BR fees).

uptomyeyes1984

thanx, for that. thats good to know i dont think we could save up £600

uptomyeyes1984

If you go bankrupt as a couple do you have to pay 2x fees?
Also are you allowed to keep you homephone line?
And what happens to your mobile contracts?
sorry for all the questions we havent had a chance to get to the CAB yet and really have so many questions in my head.
thanx

skylight

Yes, you have to pay two lots of fees.
Yes, you can keep your home phone as a reasonable expense.
Likewise with the mobile, but again it needs to be reasonable. ORs tend to allow about £40 per month combined for the mobile/home.

uptomyeyes1984

I'm just reading through the advice guide from the CAB about bankruptcy and it says

"Once the bankruptcy order is made, all your bank and building society accounts will usually be frozen immediately. Your money will come under the control of the Official Receiver"

Does this mean they take over your account where you have your wages payed into and only give you an allowance. sorry to sound so suupid. And do you have to pay anything else (monthly) for bankruptcy?
thank you again

jellygirl_2

uptomyeyes1984 wrote: »

I'm just reading through the advice guide from the CAB about bankruptcy and it says

"Once the bankruptcy order is made, all your bank and building society accounts will usually be frozen immediately. Your money will come under the control of the Official Receiver"

Does this mean they take over your account where you have your wages payed into and only give you an allowance. sorry to sound so suupid. And do you have to pay anything else (monthly) for bankruptcy?
thank you again

Hi No, they dont take over your bank account - your existing ones will be frozen and you wont be able to use them, so empty them before BR.
You will need another bank account (only a basic one though) to have your wages paid into - the Co-op Cashminder is the best - you get a debit card
and online banking which is great! Barclays offer another BR friendly basic account as an alternative.
You can apply to open one of these before you go BR - I did about 3 months before I went BR and it was fine.
Some people have to pay an IPA for 3 years usually - this is if they have a certain amount of excess funds after paying out essentials each month - perhaps you could post your Statement of Affairs (monthly income and outgoings) on here, then someone could advise you of what the OR will accept or not.
Good luck:)

sizzler

yes i did just tell OR.

Good luck sizzler:)