BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

corinne_magnin

Any idea how long before the OR freezes the bank accounts?

tigerfeet2006

The OR does not freeze bank accounts he just informs the bank that you are BR and if he has no interest in the account or not. It is the bank who freezes the account and usually when they do it is because they don't want you as a customer any more.

Barclays and Co-op are BR friendly and don't usually freeze your account. The Co-op Cashminder you have to open before BR (read the comments on the thread about this). The Barclays Basic account you can open any time.

crowmans4

wot is best in your opinion. barclays or co op.
all i need it for is for a wage to be paid into and direct debits to come out.
ive no intrest in cheque books or overdraft.
in fact i was given bad advice, to run your od to the max with halifax before going br as its goin to be written off anyhow

IF

crowmans4 wrote: »

wot is best in your opinion. barclays or co op.
all i need it for is for a wage to be paid into and direct debits to come out.
ive no intrest in cheque books or overdraft.
in fact i was given bad advice, to run your od to the max with halifax before going br as its goin to be written off anyhow

I think TF has answered your question on your thread

--- > https://forums.moneysavingexpert.com/discussion/4540801

crowmans4

not as hows best co op or barclays and what do you make of advice if going BR run up your od to the max first ?

Tryingsohardtofloat

I replied to your other thread crowmans4 re bank accounts

Regarding running up your overdraft to the max when you know you are going to declare BR, that is a complete no no. That is spending money with no intention of paying it back & the OR will take a very dim view of this. Remember that the OR will not only have access to the debt amounts, but the details of when the debt was incurred & how the money was spent. It would lead to some very uncomfortable questions from the OR & they also have to consider your conduct pre BR as well.

I'm sure people do this all the time, its a temptation that's there when you know you won't have to pay it back. We've all heard stories of the people who go out & buy brand new computers/dishwashers/TVs on credit just before declaring BR. But the OR will not overlook it & we do not hear what the consequences are of doing this. It may even be fraud, which you certainly do not want to get involved with.

skintandscared_2

Can I please ask a question. I have a bank account with Lloyds that I opened prior to starting a DMP back in November 2008. I have no overdraft and have never been overdrawn on the account. If I were to go bankrupt, would I be forced to close this account, or could I keep it going as I don't owe Lloyds any money/they wouldn't be included in the bankruptcy?

john1002

Difficult to say, the majority view is that as soon as lloyds is aware you are bankrupt they will look to close your account, you may be lucky but it is not worth the risk, sort a new basic account with c o op or barclays. If co op do it sooner than later as they no longer accept undischarged bankrupts.

john

skintandscared_2

john1002 wrote: »

Difficult to say, the majority view is that as soon as lloyds is aware you are bankrupt they will look to close your account, you may be lucky but it is not worth the risk, sort a new basic account with c o op or barclays. If co op do it sooner than later as they no longer accept undischarged bankrupts.

john

Thank you. But if what I am reading is correct, I can't open a new account before the bankruptcy order, or that will be frozen too?! How do people receive their salary/pay their bills during that time?!

wharty

Ok can i just clarify a few things.

I am worried i wont have money to pay my living expenses and rent etc when i go bankrupt.

Can somebody confirm i can open a co op cashminder account before i go bankrupt and get all my essential living costs (direct debits) transferred over to it, and they wont freeze the account as long as the OR tells them they have no interest in it?

My current account is always overdrawn (natwest) until i get paid each month. I will take my wages out straight away to cover my living costs but no more than what i need. Will this be ok? i will happily explain it to the OR and show statements that i only took my wages out etc and nothing more.

Problem i have is i have a loan and overdraft with Natwest so don't want them keeping my wages and being left with no way of paying my debts.

Thanks.