Bankrupt Account Query, help!

avinitinatt

Good Afternoon,

I have a rather odd and confusing dilemma and I really don't know where to start with it.

Ok in April 2006 I went bankrupt. I had an incredibly overdrawn (I think about £3000) account with HSBC, and before going bankrupt I opened a basic account with the Woolwich, who later became Barclays.

I have worked for the same company for 5.5 years now. Each time I changed accounts (twice now), I updated them with my new bank details immediately. My wages have been paid in with no problems over this time.

However. From March 2005 my 'expense' payments have been getting paid into the bankrupt HSBC account.

I checked this out with the payroll department, and they told me that when you change accounts and notify them, they update the expense payments team. They obviously have not done this. When I was given the account number expenses have been using it was the HSBC number. They offered me £250 compensation, I declined this for the time being, saying I will look into it further.

I know I am partially to blame, for being shockingly bad at checking my account, but I never really bothered to check, I thought the money was in there, and I was never overdrawn or in debt. Plus, I dont claim expenses very often, I probably claim on average £10-£20 a month. It was only recently when I claimed a large sum of money that I discovered this error.

Can somebody tell me if this is even able to happen, I assumed the HSBC account had been closed, and if not, how can it continue to accept fees if I am bankrupt?

Who is at fault here, the bank or my employer, or both, and what should I do, I really have no idea!

I would be grateful for any advice or assistance.

Kind Regards

Lis

JCS1

Your employer needs to speak to their bank and recall the payments which went to the old account. Once they get this money back, they should then pay you.

avinitinatt

Thank you, but can they do this if the account is bankrupt? (I acutually believed it was closed completely, but hey).

now

avinitinatt wrote: »

Thank you, but can they do this if the account is bankrupt? (I acutually believed it was closed completely, but hey).

OK we had a payment sent to a bank account that was closed, we had to contact the bank and explain what had happened, I had to request that the money was returned to sender and then the money was paid back to the correct account. HSBC should have returned the money to your employer as it is not thiers to hold, they will have it held in a suspence account (naughty) As I understand it when an account is closed in BR the money should be sent to the OR for them to decide its fate as if they held on to it, it would be classed as preffering one creditor over another, post BR all your debts are written off so the money is yours to keep (as it is expences it should be yours anyway) Get on to HSBC and request that they return the money if they don't take some advice from the OR. Good luck and keep us posted

avinitinatt

Thanks, thats really helpful. I did get onto the OR, who basically was no help at all and told me that I would have to take it out with HSBC myself. The OR also told me he had no record of this account in relation to my bankruptcy which is concerning, as I know it was included in my application; it was one of my biggest debts. I'm really worried now that something has gone very wrong, but seeing as HSBC have pretty much left me alone for several years, i'm assuming it was included in the file. I checked my credit file and this account has not been listed as settled, I have a few things to discuss with them, i'm getting onto it. I need all the money I can get, as im facing redundancy in March too ... I shall update you, thanks again!