Is it ok to simply close my bank accounts before going bankrupt?

midgetessa

I'm planning on going bankrupt very soon and what I'm wondering is if I'm as well to just close my two bank accounts before I do?

Just to explain....neither of these bank accounts is a creditor and I don't have any overdraft with them either. One account is some kind of savings account I took out donkey's years ago and is just sitting with about £100 in it. The other is an account I use for a couple of direct debits, it also has about £100 in it. I have a post office account where I receive carer's allowance and income support but this will stay open and I was told I don't even have to mention it in my application.

I know the two bank accounts would be frozen anyway and probably closed, so I'd prefer to just close them now and open a new basic account after I'm bankrupt, rather than worrying about the hassle of if/when I'll get those accounts back. I don't care about the direct debits, as I'll cover them by ringing Scottish Power and Virgin and crediting my accounts with extra in advance to cover the month when I'll have no bank account. But I'm worried that this might look strange.....that I closed these two accounts just before applying for bankruptcy. Is it better to keep them open?

Any thoughts?

skylight

Not a problem. You can use the money in them to fund your BR fees, obviously.

Angiepange

Personally I would leave the accounts open and let the OR/banks deal with them. I would withdraw the money as skylight says for your BR fees or for your essential living expenses. You have to declare the accounts on your BR forms anyway whether they are still open or closed.

I had a Nationwide account pre BR that had no debt and I left that open, fully expecting it to be frozen and closed. However the OR showed no interest in the account and it was left running by Nationwide (although downgraded from a full account).

tigerfeet2006

Also you don't have to wait to become BR before opening a Co-op Cashminder or Barclays Cash accoount. Both banks are BR friendly and generally don't freeze the account and will let you carry on as normal.

philnicandamy

tigerfeet2006 wrote: »

Also you don't have to wait to become BR before opening a Co-op Cashminder or Barclays Cash accoount. Both banks are BR friendly and generally don't freeze the account and will let you carry on as normal.

thats unless you live in brighton (OR's insist closing all accounts opened before bankruptcy) AND barclays if they were a creditor DO NOT open an account with them till after you declare bankruptcy