My younger brother is considering going bankrupt but I'm worried for him ..

mountainwiccan

He was made redundant earlier this year and on the jobseekers allowance he received was unable to make the repayments on the credit cards, loans etc that he had.

He has spoken to a couple of debt management organisations who advise bankrupty - he has the money to go bankrupt, but will this mean that he will not be able to have a bank account for 6 years? If this is the case and he gets another job, how will his wages be paid?

My mother is also worried that his bankruptcy will appear in the back of the local newspapers which used to be a custom a couple of years ago. I am more worried about him not even having a basic bank account to fall back on.

Also will he have to hand over his tv, stereo, etc as a consequence. I really do not know what to advise him to do... he has slight learning difficulties by the way so my mother and I are trying to help him with his financial circumstances.
Thanks

Lokolo

He can get a bank account but a very basic one. I don't hang around here much but I believe the Co-op is usually suggested. You can literally have money go in and out (live systems though, so I think it wouldn't let you spend on trains etc. which require offline access - not 100% on this though!!)

He won't get credit, so no phone contract etc.etc. Likely to fail credit checks for everything.

Falze

mountainwiccan wrote: »

He was made redundant earlier this year and on the joseekers allowance he received was unable to make the repayments on the credit cards, loans etc that he had.

He has spoken to a couple of debt management organisations who advise bankrupty - he has the money to go bankrupt, but will this mean that he will not be able to have a bank account for 6 years? If this is the case and he gets another job, how will his wages be paid?

He can have a account with either Barclay or the co-op, but it must be a basic account (no overdraft or cheque facility). The Co-op account has online banking, direct debits, bank transfers also)

My mother is also worried that his bankruptcy will appear in the back of the local newspapers which used to be a custom a couple of years ago. I am more worried about him not even having a basic bank account to fall back on.

Most do not get in the paper, unless the OR thinks that more creditors are out there. It will be in the London Gazzette however.

Also will he have to hand over his tv, stereo, etc as a consequence. I really do not know what to advise him to do... he has slight learning difficulties by the way so my mother and I are trying to help him with his financial circumstances.

Again this is highly unlikley, depending on there value of course. Assets should be taken, but these are normally higher value items that could demand over a £1000 in an auction.

In BR you are allowed a basic standard of living and allowances can also be made for holidays, haircuts, dental, optical etc.


Thanks

If you have any further questions please dont be affraid to ask.

The thing is most of here have been through it and are just trying to help others get through it too.

It not easy, but its not the end of the world.


Falze.

mountainwiccan

Falze wrote: »

If you have any further questions please dont be affraid to ask.

The thing is most of here have been through it and are just trying to help others get through it too.

It not easy, but its not the end of the world.


Falze.

Thanks not sure he'll get a bank account with Barclays as I believe that they are one of the people he owes money to.
He does not have a mobile phone contract just PAYG but does that mean that his existing home phone contract would be affected - Will that be terminated?

As for Cashminder Co-op accounts. I have one of those myself and also a Co-op cheque account, but they are not that easy to get - even the Cashminder. A girl I know in London tried to open one up with late debts on two credit cards (she fell back on payments for three months) and they turned her down!


Sorry for all of the questions- Can he try and open the bank account before he goes bankrupt?


Thank you...

Falze

mountainwiccan wrote: »

Thanks not sure he's get a bank account with Barclays as I believe that they are one of the people he owes money to.
He does not have a mobile phone contract just PAYG but does that mean that his existing home phone contract would be affected - Will that be terminated?

No it will probabley not be terminated as long as it is paid upto date.

As for Cashminder Co-op accounts. I have one of those myself and also a Co-op cheque account, but they are not that easy to get - even the Cashminder. A girl I know in London tried to open one up with late debts on two credit cards (she fell back on payments for three months) and they turned her down!

There are many many many people on here who have co-op accounts from before, during and after BR. As long as its a cashminder and your brother is traceable (electrol roll normally helps)

I dont know what problem your friend had but it doesn't make sence unless she owed co-op money.

Barlcays will even give you a basic account if you owe them money (from some individuals on here - i use the coop)

Sorry for all of the questions- Can he try and open the bank account before he goes bankrupt?

Yes

Thank you...

Hope that helps

mountainwiccan

Falze wrote: »

Hope that helps

You have been really helpful - thank you!
Yes I never knew what the problem with the Co-op was for my friend, but they can be a little tardy in giving you a decision. It took them 2 months to say yes to my cashminder and about four months before I heard back from them about my student account (now current account) but I am very happy with the Co-op all in all and I hope my brother can get this account.

We have made an an appointment with a debt advice service on Thursday (not the CAB) and if we cannot arrange a payment plan acceptable to his creditors, we'll look at IVF's (if they apply) if not then bankruptcy it will have to be.
Thank you

Emmylou_2

My cashminder account was opened at the branch on the day - took about 1/2 an hour all told and I got the account number there and then, although I had to wait for the debit card and pin etc through the post.

mountainwiccan

Emmylou wrote: »

My cashminder account was opened at the branch on the day - took about 1/2 an hour all told and I got the account number there and then, although I had to wait for the debit card and pin etc through the post.

Gosh not where I live! It was a epic adventure to be frank.

Falze

Emmylou wrote: »

My cashminder account was opened at the branch on the day - took about 1/2 an hour all told and I got the account number there and then, although I had to wait for the debit card and pin etc through the post.

Mine too in Northampton. Even the pin and card only took 4-5 days. This was May'10.

Best of Luck for you Bro and let us know if you need any help


Falze.

Antagonistix

After having decided to go Bankrupt last week, I went sto speak with my Pernals Banking Manager at Halifax, where I have ajoint account with the wife. I didnt want my Wifes credit rating to be affected so I had gone in to get myself a separate account. There was alot of running around after which the young manager, looked at me and daid he was sorry but he cant over rule the computers, and I cannot have another account. My wife will go in and get my name removed from her account is what we've decided.

Anyhow...After that wasted hour in Halifax, I wandered into Barclays, spoke to a nice guy there and told him I would be going bankrupt Marchish time, and he opened an account for me there and then.

A few days later, I received a lot of mail - thinking its the creditors, I was hesitant to open them, but what did I find ?

A new Halifax Easycash Visa Electron Card, and welcome to your new account from Halifax???????
Can someone explain this? Also got a letter wehere it says I have been identified as an important customre and would I like the new Halifax Credit card !!!

I had also received the Barclays CardCash Visa debit card and pin codes.

Im not sure whats going on - but it shows if you go try make it personal, sometimes then can "over-rule" the computers..

Not sure which accounts will work after the Bankruptcy, but going by what the guy at Barclays told me - even if the OR wants to see my account for a few days, they will not prevent me from using it after BR.

Best of luck whichever your brother chooses.

Falze

Generally the OR is only interested in what is in the bank account and it is upto the banks as to whether the account is closed or not.

I did mine face to face also.

Best of Luck Ant