post office account

cookiesmum

HI I haven't started my BKR yet. Just had letter from CAB about collecting my petition and go over details.
I have a few questions.

1. I'm on incapacity benifit and know I can arrange to have this paid into a Posat office account. Is there a post office account that can act as a bank accout ie I work permitted hours so need somewhere for my wages to go into and some where for my DR's to be paid from? If I try to open an account now and tell them that I'm going to go BKR will this be ok? The thought of not having a bank account frightens the life out of me. I've read that I can open an account maybe with the C0-0p or Halifax. Can I do this now or do I have to wait.
2. My son is quite ill and causing concern at the moment. He has to go into hopital on 19 March for investigations, he will be in for a few days.If I start with bankrupcy how long will it take until I have to go to court ect. I don't want this to drag on but I also don't want to be worring incase I have to be with my son at the same. I'm just wondering if I should phone the CAB and explain my predicament and see if I can wait for a while.
As you can see I don't really have a clue about BKR. Reading your post has helped but I can't help but panic.

skint_geordie2007

1. Wait until you have declared then open one, providing the timing is right. They may let you keep basic ones open, if the OR agress and the corresponding bank agress. Its no pain opening with the nationwide or the co-op providing is a BASIC account

2. It depends on your court. Some courts want you to make an appointment in advance, sometimes many months. Other courts you can turn up on the day and be dealt with. Find your local court that deals with insolvency and give them a ring, to see what the procedure is.

cookiesmum

Thanks SG 2007.
I feel like I'm running round like a fool and getting nowhere.My wages aren't much. But being in this situation every penny counts and I will need to get my wages as soon as they are paid into the bank.I get paid fortnightly so when should I tell pay roll to change accounts. Is it after I've been to court?MY ex hubby ( we are still mates) will let me have them put in his account until I can open a new one. Will this be the best thing to do. I'm so afraid of doing the wrong thing.

skint_geordie2007

The way people normally do it, is to take their wages from their account when they get paid, then declare, then when the account gets frozen its no issue. I guess in your case get your wages paid into your ex husbands account in good time, then you are in no hurry to rush around after you declare. Open up a new account, tell pay roll the details no hurry. You probably wont get the new account details till around 1 week after you have opened it. Most pay rolls have around a 2 week cut off period to change details, which would make it difficult in your case as you get paid fortnightly.
You can use your hubbys account till you get sorted, so I guess that makes its ok?

I dont think getting your wages paid somewhere else is wrong in anyones eyes. Its fine.

Slightly Off topic, but I dont know what made you decide you need to declare, post an SOA if you havent already. And any questions, just ask. Its not a nice time, fear of the unknown and the big bad monster. Its not that bad really.

shameless-about-money

cookiesmum wrote:

HI I haven't started my BKR yet. Just had letter from CAB about collecting my petition and go over details.
I have a few questions.

1. I'm on incapacity benifit and know I can arrange to have this paid into a Posat office account. Is there a post office account that can act as a bank accout ie I work permitted hours so need somewhere for my wages to go into and some where for my DR's to be paid from? If I try to open an account now and tell them that I'm going to go BKR will this be ok? The thought of not having a bank account frightens the life out of me. I've read that I can open an account maybe with the C0-0p or Halifax. Can I do this now or do I have to wait.
2. My son is quite ill and causing concern at the moment. He has to go into hopital on 19 March for investigations, he will be in for a few days.If I start with bankrupcy how long will it take until I have to go to court ect. I don't want this to drag on but I also don't want to be worring incase I have to be with my son at the same. I'm just wondering if I should phone the CAB and explain my predicament and see if I can wait for a while.
As you can see I don't really have a clue about BKR. Reading your post has helped but I can't help but panic.

You can open your basic account now with no problems at all. The OR will not ask to close a basic account, despite what is said on this Forum. Whether your income is State Benefits and/or wages that is NOT a problem at all.

Since you are on IB, the best way forward is for you to open a Co-op Cashminder account - do it on the phone - they are brilliant! You get a visa electron card and have access to your money at any Post Office. Also you get internet banking too.

Phone them today - get the ball rolling. The DWP are slow at moving payments from one account to another so it is best done asap.

Also, if you need another source get yourself a Cashplus prepaid Mastercard which works like a credit card but you can only spend the money that you put on it.

skint_geordie2007

shameless-about-money wrote:

You can open your basic account now with no problems at all. The OR will not ask to close a basic account, despite what is said on this Forum. Whether your income is State Benefits and/or wages that is NOT a problem at all.

Since you are on IB, the best way forward is for you to open a Co-op Cashminder account - do it on the phone - they are brilliant! You get a visa electron card and have access to your money at any Post Office. Also you get internet banking too.

Phone them today - get the ball rolling. The DWP are slow at moving payments from one account to another so it is best done asap.

Also, if you need another source get yourself a Cashplus prepaid Mastercard which works like a credit card but you can only spend the money that you put on it.

I was under the understanding that the bank still had the choice to freeze your account if they didnt want you as a customer, after you have declared.
That would be the last thing the OP wanted.

shameless-about-money

skint_geordie2007 wrote:

I was under the understanding that the bank still had the choice to freeze your account if they didnt want you as a customer, after you have declared.
That would be the last thing the OP wanted.

You must make sure that the basic account opened is with one of the four that allow undischarged bankrupts an account so -


Co-op Cashminder
Abbey
Nationwide
Barclays

The OR would have no need to close any of these accounts, nor would the bank require it.

There are folks here on this board who have kept bank accounts at other banks, with full cheque and debit card facilities simply because they had no borrowings with them and they weren't involved in the bankruptcy.

skint_geordie2007

I completely understand which banks offer bank accounts to undischarged bankrupts.

Read this

http://www.insolvency.gov.uk/guidanceleaflets/bankaccount/bankaccount.htm


When the bankruptcy order is made, you should:

immediately stop using your cheque books and bank cards; and
hand them over to the official receiver as soon as possible.
All your bank accounts are usually 'frozen' by the bank when it becomes aware of the bankruptcy order. So you will need to make alternative arrangements for receiving money into your account and paying standing orders, direct debits etc. You should not try to open a new bank account before the bankruptcy order is made, because this account will also be frozen.

Some banks may allow you to keep using your existing bank account. But even if your bank agrees to this, they will freeze the account when they first hear about the bankruptcy order.


Quoted from the insolvency website. In the posters situation, she has an account she can use in the meantime. I dont see any point in risking her account being frozen potentially with her money in it, even though its only temporarily. Why not just open a new one after the event, there is no hurry and risk associated with doing it in her case?

At the end the day you could have 20k stashed in there, its standard procedure to freeze them all.

shameless-about-money

The OR will not request to close a basic account!!!!

No it is not "standard practice" to freeze them all. Remember that you have to declare monies in those accounts on the SoA.

The banks don't freeze basic bank accounts - that is fact. That is why the basic accounts were set up in the first place.


I have dealt with many many people with basic accounts - they don't freeze or close them!

Simple!

skint_geordie2007

shameless-about-money wrote:

The OR will not request to close a basic account!!!!

Indeed, but according to insolvency guidelines as posted, it usually will be frozen.

shameless-about-money wrote:

No it is not "standard practice" to freeze them all. Remember that you have to declare monies in those accounts on the SoA.

According to the insolvency guidlines it usually is.

shameless-about-money wrote:

The banks don't freeze basic bank accounts - that is fact. That is why the basic accounts were set up in the first place.
I have dealt with many many people with basic accounts - they don't freeze or close them!

Again, according to insovlcency guidelines But even if your bank agrees to this, they will freeze the account when they first hear about the bankruptcy order.

shameless-about-money wrote:

I have dealt with many many people with basic accounts - they don't freeze or close them!

Simple!

Just reiterating Insolvency Service guidelines, after all these are the people that deal it.
I to have heard people keeping their accounts open. I am not sure if at any period they were frozen or not. My wife opened a basic bank account after delcaring. She didnt tell them she was bankrupt, as they didnt ask. The OR said she must ring them and tell them, as they might freeze it when they find out. He said if they are not happy , and they do freeze it, she would have to go in the branch, and get them to ring him. He would tell them to release the money. In this case they were happy to have her, which the basic accounts you mentioned mostly are. This isnt anecdotal evidence, this is feom the horses mouth.

The point I was trying to get across, the OP DOESNT need to open one before hand, she has access to another. There is no hurry. If you can guarantee the account wont be frozen at any point (rendering her stuck for money), then by all means tell her to go ahead and open one now.

I would also like to remind the OP "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".