Bankruptcy OR interview help

Tinytootz

Hello. Firstly, I am new to this forum, so massive apologies if this has already been asked, or if I am in the wrong place.

Yesterday, I went bankrupt. One of the scariest things I have done, and I am not ashamed to say I cried throughout the entire process. I am now awaiting the OR interview over the phone, and am losing sleep over it. Mainly over two things:

My car. I have told them I have a car, it is worth around £300 (genuinely, not me under estimating it), and I sort of need it for work, but not totally. Are they going to take it from me? I use my car to get to the shops, to visit family, to do work errands, and most importantly, to take my other half to work on a Sunday as the buses don't run. If they took it from me, both of us would be up the proverbial creek. It really isn't worth a lot, but then I have very little to offer them with regards spare cash, so I am worried they will take anything they can.

My bank account. I have four, all of which were declared. One has £0 in it, another has £15, another has £3 and the final one has £300. I considered clearing the £300 one, but I thought it would look bad if the day before going bankrupt I cleared all my accounts, so I left the £300 in as I have direct debits due out before I next get paid, car tax up on the 31st October, and MOT on the 7th November. I have read that chances are they will seize this money, and MAY give it me back. The problem is, if they took this £300, I really would be stuffed up, unable to afford to pay my upcoming household bills, and unable to tax and MOT my car.

In an ideal world, I want them to say "yes, you can keep the car as it isn't worth a lot, and you can keep the money in your account as we can see that bills are due out soon". But then I have this sinking feeling that they will take the car and my money.

Can anyone shed any light on what they think might happen? I realise it is mainly down to the discretion of the OR, but I am getting myself so stressed and wound up about it, it just isn't healthy! I filed yesterday (Friday), and have to wait till Wednesday for the interview.

Thank you in advance

Ineedaname

If you can prove a genuine need for the car then they should allow you to keep it. The fact your other half needs to get to work on a Sunday and has no other means of getting there may swing it for you.

Regarding the bank accounts, which banks are they with? There are only two truly BR friendly accounts, the Barclays Cashcard account and the Co-Op Cashminder. All others are liable to be frozen upon BR being notified to them by the OR, that's the banks doing it, not the OR.

If the £300 is for day to day living expenses then the OR should not take that from you. But you may find the account frozen and have to ask the OR to intervene so you can access the money. Best to pop into Barclays soonest and open an account with them and get all your income and DD/SOs transferred as quick as you can. You can use Barclays even if they were one of your creditors, they will still open a new account for you post BR.

Tinytootz

It is with Barclays. I went in to speak to them on Thursday, and the man I spoke to wasn't 100% sure on what would happen exactly, but he knew that my account would remain with them as it was a basic one anyway, my DD and SO are fine, the only thing that might change is I would lose my debit card and get a cash card. The money in there is for my upcoming TV, phone and utility bills, and then some for car tax and a bit for MOT.

I guess on Wednesday I basically have to plead my case regarding the car? Wish I didn't have to wait so long. Oh well eh

Ineedaname

OK, they may close your pre-BR account once they are notified by the OR and if you have any debts with them they may also take any balance in your account towards those debts, I believe they are allowed to do this. So if you have any debts with them you'll need to withdraw all your balance tomorrow and ask to open a new Cash Card account BUT with a debit card. The only thing you won't have is internet or phone banking, although you can get these back upon proof of discharge in a year.

If you get to keep the existing account then you are entitled to also keep your debit card, but be prepared for internet and phone banking to be withdrawn.

If you absolutely must have phone and internet banking then you'll need a Co-Op Cashminder account, you can open that by phone on 0845 602 7057. Don't worry if you haven't a branch nearby as you can pay in at any post office counter or Britannia branch and withdraw via most cash machines.

mandyl

if you have any debts with barclays be aware they make take the money. they did with me luckily i only had a £1 in there

Tinytootz

I have debts with Barclaycard, but not Barclays - is it the same thing? I drew some out yesterday, but I guess I could draw more out later today if it lets me.

Ineedaname

I think you may find a clause in your Barclaycard agreement that if you don't make the minimum payment then they can take it direct from your Barclays bank account.

Sounds like you would be better off closing that account to be safe and opening a new one.

Tinytootz

To be honest, I have had the debt with Barclaycard for the best part of 5 years now, not paid towards it in about 3 years and they have never touched my account. But to be on the safe side, I will withdraw some more money tonight.

Won't I get in bother for withdrawing money AFTER filing for bankruptcy? I know I should have done it before, but I didn't want to seem like I was hiding things from them.

Ineedaname

As it's money for day to day living expenses and you are protecting it by withdrawing it then you should be able to explain that to the OR and be fine.

Just get the new account open and put the money in there instead.

In your circumstances you should theoretically be safe just continuing with your existing account, but I'd open the new account anyway just in case the computer system throws a spanner in the works. That's the trouble with this technological age, it's not down to the staff to make the decision any more. All someone has to do is check the box that you have gone BR and the computer takes over...

Tinytootz

Thanks. I did speak to the customer advisor man on Thursday regarding this, but I will make an appointment for Monday and speak to him again now that I have actually done it, and see what happens next. And I will go to the cash machine this evening and draw out some more cash (unless it has been frozen today).

Many thanks for your advice. Only 3 more days to wait till my phone call now, or 3 sleepless nights!

sheffield_soldier

Hi,

I went BR last Tuesday and it was a breeze, staff were really helpful> i was worried about my car also and had my interview over the phone last Thursday. The lady was really nice and very helpful. I expected being stung for a lot more on an IPA but wasn't. She only wants me to pay £25 per month which I am happy with.

I was worried about my car also. My car work probably £1200, use it for work although only a couple miles away. She had no problem with me keeping the car, didn't even go in to much detail over it.

She helped me with my Income and expenditure, reducing some, and increasing amounts on others. I must say they were more than fair with me.

I don't know if they were extra nice to me because I haven't had debt for about 4 years, all mine was pre 2006 and for the past year all of my bills have been paid on time. But just be honest, and regarding car try and write down as many reasons as possible so you can put it to them if they ask.

Try not to worry because it wasn't as bad as I expected. It's not a monster on the other end of the phone, just a normal person.

Goood luck