Introduction and a question

ibrokemylife

Hello all,

Been lurking on this site intermittently for a few weeks. I am gearing up for making myself bankrupt. Consequently, I have a tonne of questions so I think you may see a lot of me in the near future!

I am going bankrupt because I owe HMRC a load of money (the exact amount is yet to be determined). Self-employment combined with (until recently) undiagnosed bipolar disorder does not make for a happy mix, but I'm pleased to be stable enough these days to start dealing with the consequences. This forum looks like a fantastic place to get some much needed advice and support.

So, question number 1: what do you do about money immediately before and after you go bankrupt? Say I have £1000 in my current account on the day I go bankrupt. Should I take it out in cash before I go to court (as I understand I mustn't use the account after I've been declared bankrupt)? Can I set up a bankruptcy-approved bank account (e.g. Cashminder) before I go bankrupt and transfer the money there? Or should I not use any bank account until the OR says I can? I'm just confused about how you're supposed to pay for food, etc. once you've left the court!

Apologies if this has been covered before - I thought I read something about this somewhere but haven't been able to rustle up the information again.

Thanks,

ibroke

tigerfeet2006

You can open and use your Cashminder before, during and after your BR. Have a look at the bank account sticky.

Why would you have a £1000 in it when you go BR? Is it business operating costs?

Have you phoned Business Debtline for some free, professional advice. You must do this as your petition could be delayed by the court untill you do.

PippaGirl_2

You can take some cash out to get you by for a couple of weeks - leave the rest in your account and declare it all (in accounts and cash in hand) on your SOA but if you have a cashminder it is virtually unheard of for it to be frozen and it should operate normally throughout.

luvchocolate

I opened a cashminder account before and got all direct debits and salary going through before br, my old account was closed within days. the O.R had no problem with this, indeed the whole meeting went well.
Show everything how it is not what you think it should be and there will be no proplems, good luck