Keeping current accounts after Bankruptcy

NekoZombie

nicky7175 wrote: »

I went bankrupt last week I opened a nationwide flex acoount before going bankrupt for my benefits and rent to be paid, I thought naybe it might be shut down. But I recieved a letter from nationwide this morning to say they are keeping the account for me

As Fermi said above, this is not always the case and unfortunately banks have been known to go back on their word. I'm not sure if nicky owed her bank money, but if you do, then you can be certain that you will not be allowed to keep it as it will be included in the bankruptcy.

fermi

oliviaolivia12345 wrote: »

........ but I thought the OR was able to retain funds for your living expenses?

The OR can't order a bank to to release funds to you if that would result in the account being left overdrawn. Neither can they instruct a bank to leave an account open, except for the purpose of inspection by the OR.

Funds can be released from an account in credit, but that does not appear to be your position.

If your payment dates for wages, credits, DD's etc make it impossible to set up a new account in time to receive/pay these then perhaps delaying might be worth considering.

fermi

nicky7175 wrote: »

I went bankrupt last week I opened a nationwide flex acoount before going bankrupt for my benefits and rent to be paid, I thought naybe it might be shut down. But I recieved a letter from nationwide this morning to say they are keeping the account for me

Nationwide are normally good. While it is always better to open an account post BR, they will normally keep to their word.

As some people have recently discovered though, if the OR doesn't get their letter stating no interest in the account quickly in the post or faxed, a Nationwide account can still end up being frozen temporarily.

Again, if at all practical, open the account post BR.

backontheup

oliviaolivia12345 wrote: »

Will the bank freeze all the money that I currently have left in there if I don't take it out now?

Yes. pure and simple. You need to take your funds out now and live on cash

I have previously been advised not to open a basic account until after my BR, but if it can take up to 4 weeks, I may be left stranded without a bank account?

Not being funny here love, but you are about to go bankrupt. Being 'stranded' without a bank account is the least of your problems ;-)

Dont worry about these things. You are focussing too much on really inconsequential matters. You need to empty your account, go bankrupt, then immediately open a basic bank account with either Nationwide or the Co-op