Clearing my bank account if declared BR

Hubb1972

Hi
I have a question about my current bank account if I declared myself BR.

Needless to say there isn't much money in my current bank account every month but it does depend what time of the month it is - am I best to clear my account out totally before I declare myself BR? And then ask my work to pay me cash rather than via BACS
The only money that is in there is money that I put aside for car tax etc etc.

Thanks in advance for any advice

skaboy

Yes, clear your current account out: the moment you are declared bankrupt, all of your assets become the property of the State, including your current account balance.

You don't need to ask your employer to pay you cash, as you can open one of the many "basic" bank accounts available.

Good luck mate: I've been through it and it's not that bad. A bit nerve-wrecking on the day but a huge relief afterwards.

skaboy

Yes, clear your current account out: the moment you are declared bankrupt, all of your assets become the property of the State, including your current account balance.

You don't need to ask your employer to pay you cash, as you can open one of the many "basic" bank accounts available.

Good luck mate: I've been through it and it's not that bad. A bit nerve-wrecking on the day but a huge relief afterwards.

less2303

Try and time it so your last pay before BR goes into your old account, then withdraw it, and as soon as you are BR open another account, the same day if neccessary, and pass these details to your employers for your next months pay.

If you open the new account before BR you run the risk of it being closed with the others.

shameless-about-money

The only banks that will allow an undischarged bankrupt a basic account are

The Co-op Cashminder
The Abbey
Nationwide
and, apparently, Barclays

You can open this account BEFORE bankruptcy with NO problem at all. There is a place on the SoA form to declare that account as basic and the OR will have no interest in it.

shameless-about-money

less2303 wrote:

Try and time it so your last pay before BR goes into your old account, then withdraw it, and as soon as you are BR open another account, the same day if neccessary, and pass these details to your employers for your next months pay.

If you open the new account before BR you run the risk of it being closed with the others.

Totally untrue!

less2303

Sorry, but its not untrue.

You should be able to keep the account open, but it doesnt always happen, and I am aware instances in the past where these accounts have been closed, and that is why I always advise wating until after BR to be absolutely sure.

When you go BR you have to inform the OR of all accounts. The OR then informs each of them of the BR and it is at the banks discretion as to whether the account is closed or not.

It doesnt always happen, but does sometimes.

gettingitsorted

i opened my basic bank account before i was declared BR ,at the court i was asked if any of my accounts were basic ones and this account was highlighted and i was told it would not be frozen.

less2303

As I say, it doesnt always happen, but can.

Sometimes the Or will add a note to the notification to the bank stating that he has no concerns with the account remaining open, but as previously stated, it is at the Banks discretion.

Ultimatley it is the bank that decides, not the OR.

Hubb1972

Thanks for your help everyone

Hubb x

less2303

Just to clarify this situation,

Once you have been declared bankrupt, ALL accounts belong to the OR, so if you draw money out then you are committing an offence under the IA86.

The OR will inform the bank (or building society) if he has any interest in the account, until he has informed them the accounts belong to the OR not you:

If the OR has an interest in an account:

If he has and you attempt to use the account you will be committing a criminal offence.

It is highly possible that the account will show on line as being fully operational, and it may be that it is, but if you use it then you are in deep poo-poo.

The majority of the time the account will be ‘frozen’ that is you can pay money in but can’t take any money out.

If this has happened and you have had benefits paid in then you must obtain written authority from the OR to ‘ask’ for this money back from the bank, some will, some will fight you like hell.

The majority of accounts the OR has interest in are those in debt and those with money in

If the OR hasn’t any interest in your account:

First things first – the OR wont tell you unless you specifically ask!!

If the OR notifies the bank or Building society that he has no interest in the account, then the account is released back to the bank, NOT YOU.

Depending on the terms and conditions of the account will depend on if you are allowed to keep the account, only the bank will be able to tell you.

MOST banks and building societies apart from the ones already mentioned stipulate in their T&C’s that they will not provide banking facilities, unfortunately most banks are slow to carry out these processes, so it is again possible that the account shows as being fully operational, which very often means the account will show as being fully active, when in reality it is not!