Bank sharing information

closingnets

Hi, I am likely to be forced into bankruptcy in the next few weeks and am trying to prepare based on the advice I've read on forums, etc. They tell you to open a cash account before you go bankrupt which is what I intend to do, at Barclays. My current bank, who I've been with for 30 years, do not know of my true financial situation and of course there are debts that will be included to them for overdrafts. I do not want to alert them as i don't want my bank accounts frozen before I'm ready, otherwise when my salary goes in (which only reduces the amount of 'red'), and they get wind of it, they could freeze my account to stop me using the remainder of my overdraft and then i wouldn't be able to pay rent, food, etc., for the month. I have 3 dependent kids and am sole earner in my household.

So, the question I have (sorry for the lengthy preamble) is: if I walk into Barclays to open a cash account and tell them that it is because I am likely to be going bankrupt, will they inform my current bank that I have done this, or is there any way for my current bank to find out?

I'm sure this will be the first post of many to come as I go through the process, but one at a time....thank you very much people.

lizisintrouble

closingnets wrote: »

Hi, I am likely to be forced into bankruptcy in the next few weeks and am trying to prepare based on the advice I've read on forums, etc. They tell you to open a cash account before you go bankrupt which is what I intend to do, at Barclays. My current bank, who I've been with for 30 years, do not know of my true financial situation and of course there are debts that will be included to them for overdrafts. I do not want to alert them as i don't want my bank accounts frozen before I'm ready, otherwise when my salary goes in (which only reduces the amount of 'red'), and they get wind of it, they could freeze my account to stop me using the remainder of my overdraft and then i wouldn't be able to pay rent, food, etc., for the month. I have 3 dependent kids and am sole earner in my household.

So, the question I have (sorry for the lengthy preamble) is: if I walk into Barclays to open a cash account and tell them that it is because I am likely to be going bankrupt, will they inform my current bank that I have done this, or is there any way for my current bank to find out?

I'm sure this will be the first post of many to come as I go through the process, but one at a time....thank you very much people.

You dont need to tell them anything. Just apply to open the account, no need to mention BR at this time.

It maybe worth checking your bank isn't linked in anyway with Barclays just incase they close the new account with the old one.

Have you posted your situation to ensure BR is the best option, and obviously seek advice from a few of the debt charities incase other options are available to you

closingnets

Thanks for your reply. But they will ask me why I'm opening the account, won't they? Once I called the Co-Op (last year before they stopped doing it) and they asked straight away was I applying because of a bankruptcy, and I hung up in a panic!! Also, I don't know but might the question not be on the application form? Example, "have you ever been made bankrupt or do you know of any impending bankruptcy" - that kind of thing? So I would have to tell them if they ask don't you think? My bank is NatWest so I don't think they're connected.
I haven't posted my situation, but my debts are massive and I have absolutely nothing - no assets, savings, house, pensions, inheritance, nothing. I'm also freelance so no fixed income either, but not on any benefits. Thanks very much again.

alastairq

First, bankruptcy cannot be 'impending'......an individual is not bankrupt until the Judge stamps the petition. It isn't something you can 'book-in-advance'..you don't have to turn up at Court, and will not be penalised for not doing so.


I have never had any bank ask 'why' I wish to open an account.

Regarding Co-op? If applying for a Cashminder basic account, they will probably ask you if you are BR, and undischarged.

That is because Co-op adopted a policy of not opening Cashminder basic accounts to undischarged BRs.

Remember, you are not bankrupt until the petition is stamped.

You have no need to inform anybody you might be petitioning BR.

Apply for basic accounts, either with Co-op or Barclays, and you will be fine.

Best do it now, just in case the worst happens?

closingnets

Thank you Alistair...I'm off to Barclays (would have preferred Co-Op ethically but no app and I've come to depend on my app for all the juggling - even down to card declines while paying for food, a quick transfer and the card is accepted!). I've had the same bank account since I first started work at 17, now 50 so sad to lose my long memorised number
Thank you for your advice, very helpful and supportive.

alastairq

Before you go..be aware, Barclays do not allow internet access for undischarged BRs....so your app may not work if you do petition BR.

It would do no harm whatsoever to apply for a Co-op account or two [Cashminder].

Co-op at least allow internet access for undischarged BR's....but admittedly it isn't the best software.

closingnets

Thanks for that tip Alistair, it's not the kind of question I could ask them when I go in to apply!! It's the app that was important as well as the online - do you think Barclays would allow app use for undischarged BRs or is that the same rule as for online?