Bankruptcy - when is the best time to do it?

montymud

Hi all, I have just been given some great news. The funds that we were waiting for to pay for the bankruptcy have just come through. There is one little thing that is worrying me though. I am due my wages next Friday. I only work part time so this pays the basics like putting Gas and Electric on the key and card and food.

I have the option of going to the court anyday next week to become bankrupt but will this mean that I then cannot access my wages on Friday from my basic bank account which obviously we will very much need. I am worried that A) The account will be frozen and The official reciever will be very peeved that we have gone bankrupt but then withdrawn the wages from our bank account.

Many Thanks

montymud

Ah - no worries. I have found a link on one of the threads that states the offical reciever allows us to have money for food and gas/electric and can instruct the bank to release this to us. Just need to trot off down to the post office and open an account for the future!

National_Debtline

Hello there. It's the bank that decides to close the account, who is it that you bank with?

As you've found out, the Official Reciever will work with you - as such you shouldn't encounter too many difficulties when it comes to paying for your essentials.

Best wishes,

David @ NDL.

NINANinja

Hi
I went BR this week. I had an initial chat with the OR within an hour of being made BR & she said I could continue to use both of my Co-op Cashminder accounts. So my accounts were never actually 'frozen'.
I had taken out enough cash in case I couldn't get to my accounts for a few weeks, but the OR was ok about this & I've paid it back into the accounts. In fact, she said she didn't want to get in the way of how I manage my money. Didn't know whether to laugh at the irony of it or cry with shame!
Nina
Xx:rotfl:

montymud

Hi thank you both, Nina - its good to talk to someone that is very near the same stage as me.

Hi David - I bank with Barclays which I have found out is one of a very tiny few 'bankrupt friendly' banks. Hopefully the account won't get frozen which would be great.

alastairq

In fact, she said she didn't want to get in the way of how I manage my money. Didn't know whether to laugh at the irony of it or cry with shame!

that is true..the OR isn't a Debt advice counsellor....neither are they there to inflict any sort of punishment.
They are there simply to realise the BR's assets for the benefit of creditors..a debt solution.

All the OR wants from the BR is a list of reasonable living expenses..not bare bones stuff, but 'reasonable'....[The SOA]

Plus, of course, co-operation.

Truth of the matter is, most people are 'insolvent'.....some manage that insolvent situation better than others......some have more favourable circumstances than others...

Nothing to be ashamed of at all.

Hi David - I bank with Barclays which I have found out is one of a very tiny few 'bankrupt friendly' banks. Hopefully the account won't get frozen which would be great.

Note that it is likely [once they find out/get their act together].....that Barclays will withdraw internet and phone access for managing the account, whilst Undischarged.

We assume you have a basic Barclays account, rather than what some perceive as a 'normal' account [as in cheque books, overdraft facility, etc].....?

Often, folk petitioning BR have the incorrect type of accounts, and become disilussioned and confused when the accounts are terminated or frozen by the banks......unaware of the need to have basic bank accounts only.

peteandnatasha

Hello I wouldn't bother with the Post office account, more hassle than it's worth. Can only withdraw over the Post office counter or from a Post office ATM the nearest one of them to me is 15 miles away!

montymud

Hi, thank you for your help there alastairq - it is indeed a Basic account and I have no worries about them withdrawing internet and phone access to it while undischarged. Just hoping they won't freeze it, could really do without a delay in getting tax credits etc!

thelionel2000

I went bankrupt last month, the OR said in her interview a week later that she had no intrest in my accounts and I could carry on using them.
I had made Co op aware off what was happening and all they did was put a hold on me having DD/SO they have not as yet put any restrictions on telephone/internet banking as off yet.
I chose to go BR the week after payday as that gave me chance to pay the bills and then take money out for the next couple weeks till I had my interview.
Also don't forget Christmas is due (not that you can) and things may not move as fast as usual.
The interview for me was much easier than expected but I had alot off old debt but we have all differant situation.
If you have not already done speak to barclays or open a co op account so you have one completely seperate just incase barclays don't want to know.
My phone interview was just under a hour so make sure your ready, they call on the dot and have a pad for notes and write down some questions you may want to ask.
Also if you get chance go down to the court before hand and find out where you go/parking.
Also take a look at the bankruptcy club thread as I have alot off help on their even if you think your question that is silly someone will help.
I hope all goes well you get alot off support on here I am sure that if any thing above is incorrect or missed one off the good guys will chip in.

alastairq

Both Barclays and Co-op will not freeze basic accounts.

Barclays have a policy of suspending internet & phone access during the Undischarged period.

Co-op have no such policy.

Co-op will not open their basic account [Cashminder] if the application is made whilst Undischarged.

Barclays aren't so fussy.

montymud

Thank you thelionel2000. I am thinking about going to the courthouse on Wednesday now instead of Friday. If I do that will I still be able to withdraw my wages and pay my bills on friday (the day I get paid). Thanks guys. I'm loving the support here.