Advice on accounts in bankrupcy

Mummy_george

Hi, Please can someone help. We are currently in talks with CAB we have debts of approx £60,000 ( stupid I know ) we are currently looking at bankruptcy or possibily IVA we have not yet chosen whats best option for us. I have read up lots but one thing I cant get clear on is what happens to finances after bankruptcy. How do we obtain our money? does the OR decide what we can have? how long does this go on for?

Any help from someone that knows is greatly appreciated x

banksshouldworry

Mummy_george wrote: »

Hi, Please can someone help. We are currently in talks with CAB we have debts of approx £60,000 ( stupid I know ) we are currently looking at bankruptcy or possibily IVA we have not yet chosen whats best option for us. I have read up lots but one thing I cant get clear on is what happens to finances after bankruptcy. How do we obtain our money? does the OR decide what we can have? how long does this go on for?

Any help from someone that knows is greatly appreciated x

I went BR last Jan owing over £80k.

Here's what happened with my finances in bankruptcy...

On the day of my BR, I submitted the forms with details of all of my essential expenses. This SoA needs to be reasonable in the eyes of the Official Receiver (OR). I also had to detail my assets, bank accounts as well as all of the people I owed

I walked into the court in the morning within a couple of hours I was officially bankrupt and my debts written off... phew!

A couple of weeks later I had a call with the OR and we went through my finances and agreed my reasonable outgoings. Once these are agreed, you'll allowed this figure per month as well as a surplus of £20 per month.

The OR doesn't really take control of your bank account or monitor closely what goes in and out or give you permission what you can or cannot spend the money on. Instead, you have an obligation to let the OR know if your circumstances (especially your income) change massively.

I opened an account with Barclays and operated all of my money from there. I could take out what I wanted to (there wasn't much in there though!) and spend it on what I wanted to.

For me, this lasted for the full year of the bankruptcy until I was automatically discharged in the middle of this month. If you have an income that covers more than your reasonable expenses and the £20 per month discretionary income, then you may get roped into an IPA that'll last for 3 years.

banksshouldworry.

Mummy_george

banksshouldworry wrote: »

I went BR last Jan owing over £80k.

Here's what happened with my finances in bankruptcy...

On the day of my BR, I submitted the forms with details of all of my essential expenses. This SoA needs to be reasonable in the eyes of the Official Receiver (OR). I also had to detail my assets, bank accounts as well as all of the people I owed

I walked into the court in the morning within a couple of hours I was officially bankrupt and my debts written off... phew!

A couple of weeks later I had a call with the OR and we went through my finances and agreed my reasonable outgoings. Once these are agreed, you'll allowed this figure per month as well as a surplus of £20 per month.

The OR doesn't really take control of your bank account or monitor closely what goes in and out or give you permission what you can or cannot spend the money on. Instead, you have an obligation to let the OR know if your circumstances (especially your income) change massively.

I opened an account with Barclays and operated all of my money from there. I could take out what I wanted to (there wasn't much in there though!) and spend it on what I wanted to.

For me, this lasted for the full year of the bankruptcy until I was automatically discharged in the middle of this month. If you have an income that covers more than your reasonable expenses and the £20 per month discretionary income, then you may get roped into an IPA that'll last for 3 years.

banksshouldworry.

Thank you thats a great help x

TheGardener

Mummy_george wrote: »

Hi, Please can someone help. We are currently in talks with CAB we have debts of approx £60,000 ( stupid I know ) we are currently looking at bankruptcy or possibily IVA we have not yet chosen whats best option for us. I have read up lots but one thing I cant get clear on is what happens to finances after bankruptcy. How do we obtain our money? does the OR decide what we can have? how long does this go on for?

Any help from someone that knows is greatly appreciated x

There is a lot to take in - read all the posts on the Welcome post at the top of the board.
If you haven't already done so - open basics accounts with Barclays or the Co-op - if you chose the co-op do not mention that you plan to go BR. Your normal income will need to go into one of these basic account and the OR will tell the bank they have no interest in that account - although the account may be frozen for a week or so, you will be allowed back into it once the OR has notified the bank.
Planning and being aware of the timescales and process are important in making sure you are not left struggling though lack of access to you funds.

Mummy_george

Thank you one of the crediters are barclays not sure if they will allow to open another account x

alastairq

BArclays appear to not hold grudges [unlike some other HS banks?]....so apply, in bank, in person.....nothing to lose [literally ]?

TheGardener

Mummy_george wrote: »

Thank you one of the crediters are barclays not sure if they will allow to open another account x

even if they are - once you have gone BR they will open you a basic account but you wont be allowed internet or app banking until you are discharged.

Mummy_george

Thank you x