Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

Former_StepChange_Rachel

ggartside2 wrote: »

me and my wife have started the process of going bc on the advice of cab.
we both have mobile phone contracts and sky contract,my question is do we have to cancel these contracts.
thx

Hi there, thanks for posting.

It sounds like you've had some great advice already from egrescrimp. To reiterate the advice given on the SOA, it's always a good idea to take a close look at your budget anyway so you know exactly what you're dealing with as far as incomings and outgoings.

If you're not feeling entirely sure about bankruptcy, it wouldn't hurt to get a second opinion from us. We can double-check your finances and just make sure there aren't other options available that might be suitable.

Our online advice tool Debt Remedy can help put together a personal action plan and provide a debt solution for you in just 20 minutes: http://www.stepchange.org/msehelp

Kind regards

Rachel

77blondie

Help re Barclays
I have opened a new Barclays account to use when bankrupt from Friday. Just register for the Barclays banking app to service my new cash card account and when u open it the debt I have with Barclaycard is on there. Are they going to take money from cash card account to pay barclaycard debt? I'm scared to put any money into the account for fear of them taking it. I had given my employer these details to pay wages into

alastairq

As mentioned elsewhere, Barclaycard are a separate entity to Barclays bank.

StepChange_Pavan

77blondie wrote: »

Help re Barclays
I have opened a new Barclays account to use when bankrupt from Friday. Just register for the Barclays banking app to service my new cash card account and when u open it the debt I have with Barclaycard is on there. Are they going to take money from cash card account to pay barclaycard debt? I'm scared to put any money into the account for fear of them taking it. I had given my employer these details to pay wages into

Hi there,

Unfortunately they are the same company so you won’t be able to use this account after your bankruptcy. I’d recommend that you open an account with a credit union instead. You can always ask a close relative or friend if they wouldn’t mind having your wages paid into their account for the time being too.

I hope this helps,
Pavan

StepChange_Pavan

alastairq wrote: »

As mentioned elsewhere, Barclaycard are a separate entity to Barclays bank.

We've recently had it confirmed that they are the same company and they can use the right of set off.

77blondie

StepChange_Pavan wrote: »

We've recently had it confirmed that they are the same company and they can use the right of set off.

Thanks Pavan, this was my worry

fermi

StepChange_Pavan wrote: »

Hi there,

Unfortunately they are the same company so you won’t be able to use this account after your bankruptcy. I’d recommend that you open an account with a credit union instead. You can always ask a close relative or friend if they wouldn’t mind having your wages paid into their account for the time being too.

Pavan. That is wrong.

Once you are made bankrupt they have no right of set off against any money paid into the account after the date of the bankruptcy order.

77blondie

fermi wrote: »

Pavan. That is wrong.

Once you are made bankrupt they have no right of set off against any money paid into the account after the date of the bankruptcy order.

AHHHHHH!!!!!! I go bankrupt on Friday, Barclays account is set up, Co-op one isn't yet!!! Wages not due to be paid in until 28th which is after bankruptcy so do I use Barclays or not?? I'm so confused, so many conflicting stories.

fermi

Lost count over the years of how many people have gone bankrupt owing Barclays money on credit cards, loans, and even on current accounts, who have then had no problems running a new Barclays basic account straight after.

That is not to say there is no risk, as banks sometimes do do things they should not, or misbehave. As always you have to weigh up the pros and cons.

philnicandevan

Pavan as said this is INCORRECT barclays were one of my largest creditors yet allowed me a basic account once bankrupt...as to rights of set off yes they "could" take funds before bankruptcy BUT once bankrupt as you probably know legally they cannot