I'm not clear on this - what happens to bank accounts when you go BR?

Legacy_user

So when you're officially BR, what happens to your bank accounts and any money that may be in them?

It would seem the accounts are frozen and any money taken - correct?

So I presume nobody pays their mortgage or utility bills for the next month?

Are you not left with cash to live on?

Ineedaname

This superb new thread from If is a good place to start reading.

What most people do is open a BR friendly bank account and get all their income and DDs/SOs transferred over before they go BR. Then you just advise both the bank and the OR that this is your day to day account and it stays open.

System

So the information that says your bank account £££ is taken when you go BR is in fact not true?

dojoman

messedupmoney wrote: »

So the information that says your bank account £££ is taken when you go BR is in fact not true?

Not necessarily, if the bank is a creditor in your BR, they may claim the money in your account at the time of your BR to offset any loss they may incur.

System

I'm not talking about the bank taking money out (if they're a creditor), but the OR or whomever.

I was lead to believe that when you're declared BR, essentially any dosh you have in your accounts at that time is taken away. It doesn't *sound* right to me so maybe it isn't the case after all.

dojoman

Have you taken any advice from one of the debt charities yet? The OR does not close the account it is the bank that will do that.

Ineedaname

If you have any savings or money in your current account that is surplus to 'reasonable living' requirements, then you will need to declare it on your BR forms. Regardless, the OR will want copies of your bank statements and see what money you have.

They may then decide you have money surplus to requirements and ask you for it. They cannot just take it. You do sign the BR forms to say you will cooperate though...

tigerfeet2006

If you only have enough in your account for your immediate living expenses and you tell the OR that this is what is in the account then he should declare no interest.

Some people to avoid any worry remove any money from the account until they have the OR's declaration. Some make sure all DD's have been paid before they go BR.

But as long as it is just living expenses you should be ok.

As the others have said have you taken any advice from the debt charities?

For ‘essential’ BR info this is Fermi’s sticky - Click here

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.