Bank Account and Redundancy!

northern_worrier

Hi, I've 2 question's regarding my possible bankruptcy in the next few months and I can't seem to find an answer in the post's I've seen so far.

I looked into going Bankrupt late last year, however due to other situations, namely the house being repossessed, I didn't go for it. However the time is now upon me and in a few months I'll be applying for it.

However when I looked at it last year I saw that my account would be frozen, including my joint account with my fiancee, and as such I took the step of moving all the DD's and payments to my partners account, which is only in her sole name. My partner doesn't work as she's at college, so it's really only my wages that get paid into her account. Nothing now comes in or out of the old joint account.

So my question is mainly: will anything happen to her account since it's in her sole name, but is getting my wages paid into it?

Also, to top off a wonderful year, my employer recently announced a raft of redundancies, and my role is one of those "at risk". Because of this I could possibly be made redundant, and as such I may receive a redundancy payment in the next few months aswell. I've read that I would have to make the OR aware of this if it happened after I applied for bankruptcy, but what exactly would happen to the money? Baring in mind that it would also be paid into my partners account as above?

Any help would be appreciated guys!

philnicandamy

northern_worrier wrote: »

Hi, I've 2 question's regarding my possible bankruptcy in the next few months and I can't seem to find an answer in the post's I've seen so far.

I looked into going Bankrupt late last year, however due to other situations, namely the house being repossessed, I didn't go for it. However the time is now upon me and in a few months I'll be applying for it.

However when I looked at it last year I saw that my account would be frozen, including my joint account with my fiancee, and as such I took the step of moving all the DD's and payments to my partners account, which is only in her sole name. My partner doesn't work as she's at college, so it's really only my wages that get paid into her account. Nothing now comes in or out of the old joint account.

So my question is mainly: will anything happen to her account since it's in her sole name, but is getting my wages paid into it? if she's not going bankrupt and you are & just having wages paid in then nothing will happen with it

Also, to top off a wonderful year, my employer recently announced a raft of redundancies, and my role is one of those "at risk". Because of this I could possibly be made redundant, and as such I may receive a redundancy payment in the next few months aswell. I've read that I would have to make the OR aware of this if it happened after I applied for bankruptcy, but what exactly would happen to the money? Baring in mind that it would also be paid into my partners account as above? you have to inform the OR within 21 days of any changes in finances...with regards to the redundancy payment the receivers will more than likely take the whole ammount

Any help would be appreciated guys!

have you spoken to any of the debt agencies? cccs/CAB/national debtloine

northern_worrier

I'm calling the National Debtline on my day off on Wednesday to try and get everything straightened out in my head.

Thanks for the answers, I thought that would be the case for the Bank Account.

And I really hope that's not the case for the Redundancy payment

philnicandamy

Redundancy payment it will be i'm afraid...classed as an asset the receiver will seize

curly04

re the redundancy payment - they will take it all if you are BR

They have just let 900 people go where I work, so I rang my OR to find out what would happen.

Luckly at this stage I'm not one of the 900

northern_worrier

Well that's no good

What happens if I'm made redundant before I declare myself bankrupt? The money would be paid into my partner's account so not sure if this would be classed as MY asset or not?

dojoman

As far as I am aware, yes it would.

northern_worrier

Would this mean I would have to declare what's in my partner's account when I apply for the bankruptcy aswell?

I thought it was only my account's that I had to declare?

Just slightly confused if it's in her account and I'm going bankrupt, sore head ensue's

philnicandamy

You wont BUT make it very clear its your OH's account not yours....BUT because you are receiving the redundancy payment its classed as a change in your finances therefore you inform the receiver & they take the cash dont matter where its paid in to

curly04

You have to declare the account that you are using.

Also they will want to look at payslips / p45 so the question will arise - where is the money and what did you spend it on

if you try and hide it this could be classed as fraud.

Would the payment not cover your debts?

northern_worrier

It would make a dint in the loans/credit cards, but no where near enough to cover what's left over when the house is sold, which is currently looking about 40k+

So just so it's very clear for my head:

- If I'm made redundant before I'm bankrupt then I have to list my assets which would include my redundancy payment, even though it's in my partner's account
- If I'm made redundant after I'm bankrupt then I would have to inform the OR who would most likely take it all.

So either way I'm possibly out of a job, with no redundancy payment to boot!