Bank Account Freeze...what does it mean?

LostChange

Hi there,

I've decided to go BR after failing an IVA,but I've read that on getting a BR order, your bank account is immediately frozen.

I have a basic Cashminder account at COOP bank. Will the OR freeze this straightaway so I have no access to my funds?

Thanks!

ps I'm a newbie to this,sorry if it seems like a dumb question!

alastairq

No...as long as you can show the account is used for day-to-day living expenses...and not as a method of hiding cash assets. This will be established during the initial contact with the OR's office on or immediately after the Court petition.

It is the banks that freeze accounts, once they are aware of a bankruptcy.

Co-op are not known for that practice.... the OR will let them know ASAP that the OR ''has no interest'' in the account.

[unless Co-op is a creditor, then they might ask you to close the account and go elsewhere].

As a precaution, a day or so before your Court petition, withdraw sufficient funds to see bills met, etc for a few days.

Also, once the Petition is granted,. phone Co-op and ask to speak to someone from their BR department.

They will tell you what may occur, given your particular circumstances, but usually they will tell you not to worry, and they await the OR's letter confirming 'no interest'.

IF

Hi LostChange I Agree with Alastair too and for further info please click on link below:-

BR Friendly bank accounts sticky.

Best wishes
If...x

sundays

You n otify the co op of your intention to declare BR, they will advise whether you can keep the account or not, at BR you ring them and continue to operate as normal, the co op is a very friendly bank to be BR with ,

WantToBeFree

When I opened my Co-Op Cashminder account I advised them that my intention was to go BR, then after court I called them again and they were fine, no interest in freezing the account at all.

Interestly tho, I had cause to call Santander last week, my old account I assumed would be frozen, and they hadnt even been notified of the BR or had any contact at all from the OR!! BR was end of Feb! Very nice lady told me that it wouldnt be frozen anyway as I didnt have an overdraft facility and didnt owe them any money, so now I have 2 bank accounts! lol

IF

WantToBeFree wrote: »

When I opened my Co-Op Cashminder account I advised them that my intention was to go BR, then after court I called them again and they were fine, no interest in freezing the account at all.

Interestly tho, I had cause to call Santander last week, my old account I assumed would be frozen, and they hadnt even been notified of the BR or had any contact at all from the OR!! BR was end of Feb! Very nice lady told me that it wouldnt be frozen anyway as I didnt have an overdraft facility and didnt owe them any money, so now I have 2 bank accounts! lol

Please be careful with this account WTNF, I've heard of so many posters saying this, only for the account to be closed......so err on the side of caution as officially this account now belongs to the OR.

If...x