Bank accounts for bankrupts

Demelza

Hi

Altough I've just read a post about bank accounts, can anyone tell me is it always possible for a bankrupt to get a bank account as it is nigh on impossible to live without one now. I don't know of any employers who don't need you to have a bank account to pay wages in.
A friend's daughter and husband are going bankrupt and have asked my friend to open an account for them for salary etc to be paid into. She's worried about her tax situation etc. i say they should be able to have a bank account of their own albeit probably with restrictions. Can anyone advise please?

Thanx

betterlatethannever

I don't want to take away fromt he OP first post, but i was wondering on the legalities of opening an account for a BR person, prehaps by a friend or family member?
I ask because after all the recent questions and answers re bank accounts, it seems to be getting harder and i was going to ask (well tell)! my daughter that i may hi-jack her bank account for my own personal use and she can go and open another account somewhere else. Is this allowed? i won't, of course be asking for any credit/OD facilities.

owetoomuch

You can get your salary paid into anyones account so long as you have their permission and details, the only problem would be you would really need to trust that person not to spend your money.

ADDED: This should only be a temporary measure until their new account has been set up

wherediditallgo

They should be able to open accounts in their own right. If you look at the sticky here, you'll see details of basic accounts open to bankrupts. The Nationwide appears to have changed its policy as of 1 July, but the Co-op and Barclays accounts are still available. These accounts would certainly allow them to have their salary paid into them, so there's no need for them to have to go through your friend.

Your friend might be concerned about her tax situation, but I'd be more worried about the Official Receiver wondering why I've got involved in something so unnecessary. The Official Receiver will also wonder why the three of them have set this up. The Official Receiver is a many-tentacled animal - they can find out from the Inland Revenue what money has been earned, can find out from employers where the money has gone to & can request bank statements going back years. Your friend would have some tricky questions to answer, as would the bankrupt couple. They could end up subject to a restriction order if the Official Receiver felt there was collusion to hide assets or dispose of them in order not to have them included in the bankruptcy.

wherediditallgo

betterlatethannever wrote: »

I don't want to take away fromt he OP first post, but i was wondering on the legalities of opening an account for a BR person, prehaps by a friend or family member?
I ask because after all the recent questions and answers re bank accounts, it seems to be getting harder and i was going to ask (well tell)! my daughter that i may hi-jack her bank account for my own personal use and she can go and open another account somewhere else. Is this allowed? i won't, of course be asking for any credit/OD facilities.

I think having salary paid into someone else's account on a temporary basis until your own account is sorted out wouldn't be a problem. Even if you got it paid into their account long-term, it shouldn't be an issue as long as the OR knows about it & everything's above board. However, I think questions would be asked if someone decided to share someone else's account, especially if it has better terms/facilities than they could get for themselves, & even more so if the terms/facilities were things they wouldn't be allowed to have on their own account because they'd have to declare their BR status.

betterlatethannever

Thanks for that WDIAG.