Bankruptcy

justin2010

My Wife and I have managed to get in to a serious amount of debt, £84k to be precise. We were managing to pay everything up to the point where Northern Rock decided not to let us pay interest only on our Together Mortgage anymore and our payments went up by £500pm. We tried for an IVA but as Northern Rock are our biggest creditor they refused, we then entered a DMP that we have just cancelled. We have two children, our youngest being 5 months. When my wife finishes her Maternity Leave, one of us will not return to work as private childcare for two children costs more than one monthly salary. We have no equity in our property and have no items of value, we therefore have no option but to go bankrupt.

We had our bank accounts closed during the IVA process and opened a Halifax Easycash account. Will our Easycash account be affected by the bankruptcy? Will it be frozen? If yes when would it be frozen?

Thanks J

Manoona

Hiya,

It can be a bit hit and miss but Halifax are not very Bankrupt friendsly so the likliness is yes it will be frozen...Its ahrd to say when exactly, my accounts were frozen apx 3 weeks after I declared myself BR.

The best thing to do is to get a Co-Op basic account, you can open this before bankruptcy, just make sure you open it in branch and explain exactly why you need a basic account and all should be fine!

Barclays are also Bankrupt 'friendly' you can open an account before, or even ont he day you declare yourself Bankrupt!

dojoman

Your Halifax account WILL be closed, as already mentioned you could open a Coop Cashminder account or a Barclays basic account. If you owe money to the Coop then I am afraid they will not give you an account. If you owe money to Barclays they will give you an account, but you are better off opening it post BR. I opened my Coop account 10 weeks before going BR, did it over the phone told them that I was going BR, and took about 10 minutes to complete. I only opened my Barclays account after going BR as they were a creditor of mine.

Hanky3

I received a letter from Halifax, who held my pre-bankruptcy current account, advising that their policy is not to offer any form of bank accounts to bankrupts.

With the co-op now with a basic account - allows money to be paid in and standing orders / direct debits to come out. Also get a debit card and you can use the cash card at any ATM, so no probs with doing the day to day banking stuff.

Falze

Justin if you have any other questions, please just ask.

May i also suggest you trawl through these pages on the forum. They were a source of invaluable knoweldge and personal experience.

Also make sure you have taken proffessional advise from one of the debt charities.


Falze