We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
newly bankrupt - wages issue

dadof4_2
Posts: 1 Newbie
Hi all,
I was declared bankrupt on the 13th April and thanks to the advice on this and other sites the process was a lot easier than I imagined, so thanks everyone!
I did have one complication during this process and that was that it was happening smack bang in the middle of the month and this made deciding what to do with my wages which are BACS payments difficult. My employer informed me that they would not pay them into an account that wasn't in my name. Obviously i had applied for a new account with the Co-Op once my BR had been declared but that request was referred and I wasn't sure of the timescales before the account would be ready to receive money.
I discussed this with my OR and she said the best option would be to allow my wages to go into my bank account and that once they were in she would contact the bank and inform them she had no interest in the money and that they could release the funds to me. I mentioned that since i owed them money via a loan and a credit card i was worried they would retain my money, but she advised not to worry since they couldnt withhold my funds as this would be seen as preferential treatment. Excellent i thought!
However on contacting the bank today to check their procedure for going ahead with this the lady on the phone said it was up to their head office how much money they released to me, I confidently said they couldnt do this for the reasons the OR gave and happily took the fax number of the branch to pass to the OR.
On phoning the OR i mentioned what the lady had said and she asked me to hold........she then came back and said oh yeah they can do that cos you owe them money :mad:
Brilliant! so given that my wages that go in on Friday are about 10% of my debt to the bank and also given that my outgoings only leave me with a couple of hundred spare a month and hence me needing almost all of my wages to survive next month how much should i expect them to with-hold from me??? If they decided to take a fair chunk im really going to struggle to get by! my IPA is being done at the moment and i'll be on NT Coding and paying an additional £80 a month out of my wages which i was happy with but for May it looks like i might not have any money at all!!!
What's everyones thoughts! Im a little annoyed at the OR as well as she is clearly a little inexperienced!
Thanks
I was declared bankrupt on the 13th April and thanks to the advice on this and other sites the process was a lot easier than I imagined, so thanks everyone!
I did have one complication during this process and that was that it was happening smack bang in the middle of the month and this made deciding what to do with my wages which are BACS payments difficult. My employer informed me that they would not pay them into an account that wasn't in my name. Obviously i had applied for a new account with the Co-Op once my BR had been declared but that request was referred and I wasn't sure of the timescales before the account would be ready to receive money.
I discussed this with my OR and she said the best option would be to allow my wages to go into my bank account and that once they were in she would contact the bank and inform them she had no interest in the money and that they could release the funds to me. I mentioned that since i owed them money via a loan and a credit card i was worried they would retain my money, but she advised not to worry since they couldnt withhold my funds as this would be seen as preferential treatment. Excellent i thought!
However on contacting the bank today to check their procedure for going ahead with this the lady on the phone said it was up to their head office how much money they released to me, I confidently said they couldnt do this for the reasons the OR gave and happily took the fax number of the branch to pass to the OR.
On phoning the OR i mentioned what the lady had said and she asked me to hold........she then came back and said oh yeah they can do that cos you owe them money :mad:
Brilliant! so given that my wages that go in on Friday are about 10% of my debt to the bank and also given that my outgoings only leave me with a couple of hundred spare a month and hence me needing almost all of my wages to survive next month how much should i expect them to with-hold from me??? If they decided to take a fair chunk im really going to struggle to get by! my IPA is being done at the moment and i'll be on NT Coding and paying an additional £80 a month out of my wages which i was happy with but for May it looks like i might not have any money at all!!!
What's everyones thoughts! Im a little annoyed at the OR as well as she is clearly a little inexperienced!
Thanks
0
Comments
-
think banking offer a bank account about thirty pounds up front and 12.50 per month,that will help with ur banking problem someone else will answer the other part hope it helps and good luck0
-
Don't know about bank/or side of things and it may be too late but is there any way you can get your employer to stop the BACs payment?
I've found the coop to be helpful, so it might be worth calling to ask to get your new account info so your employer may be able to pay into that, or pay you by Q?
Hope you get something sorted out asap
lbm0 -
HI OP has a co op account that is waiting to be opened
I would speak to your payrol - if you a paid this friday, they wont be sending the payment intil today
Hope this helps
CurlsTotal Weight Loss - 28lb and countingAD 17/11/20100 -
Curly04 is right they should be running the payrol today for Friday BACS payments. Your employer can also recall a BACS payment (don't think they like doing this as it takes a few days to get back to them and think there is paperwork involved) but it can be done so that may be another option. Good luck x0
-
Ok, if the money has gone in after the date of the bankruptcy order then the bank cannot take any of it and must release it to you, it is that straight forward, if it went in before the bankruptcy order then they can set it of against any debts with the same bankHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.2K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.3K Spending & Discounts
- 240.8K Work, Benefits & Business
- 617K Mortgages, Homes & Bills
- 175.6K Life & Family
- 254K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards