Nationwide - Bankruptcy - & NT Tax Code

RustyB

Am going BR on Friday, spoke to Nationwide and they have said I should be fine to continue with my Joint Flexaccount (Once the OR has told them they have no interest in the account) after bankruptcy as I don't owe them any money and other than a credit card which will be taken away have no other credit facilities with them, , anyone else had experience with Nationwide?

My thoughts being that if they do go back on what they have said then I could just remove myself from the account and continue operating it with my Wife dealing with the money side, IE Wages and Bills?

Also on another note just so I understand fully, the NT Tax code if applied should just go straight to the OR and if it does end up in my account I will just pay it straight to the OR? Therefore I won't be any better or worse off?

Thanks for your advice

CKhalvashi

If I remember correctly, it should be paid to you, then you pay monthly the IPA.

It's been a while since I dealt with bankruptcy and tax (my specialist area is housing, so I do see it occasionally), so I'm not 100% sure.

Someone will be along after to confirm if I'm right.

alastairq

Also on another note just so I understand fully, the NT Tax code if applied should just go straight to the OR and if it does end up in my account I will just pay it straight to the OR? Therefore I won't be any better or worse off?

The Nil Tax Code is applied to your wages, as & when HMRC get around to it.

Therefore you will receive what amounts to 'gross' pay.

The OR will probably have calculated [from your income figures] the approximate amount you'll have to forward to them [or, their agents]....each month.

If your pay is variable [overtime, etc] then the OR will request you forward payslips each month [once the NT code starts]...and any reduction, or additional NT payments can be calculated accordingly [and, paid retrospectively].

You will be informed as to what procedures to follow regarding payments, and wage slips....do not pay anything until everything is set up.

If teh NT code starts beforehand, then simply put aside an amount equivalent to what you would have paid in tax....as this may be collected eventually.

If the amount to be paid is regular, payment can be made by SO...

BTW....given you are intent on petitioning BR so soon [no harm in cancelling, getting bank accounts sorted, then petitioning at a later date]....you may be better advised going into Barclays after the date of petition, and opening a basic account with them. Then your income can be paid into there....DDs set up, etc.

You are probably best to close the NAtionwide account altogether...get your spouse to open her own basic account....thus severing financial links for both of you. This will make things easier when clean-up time comes....and allow your spouse to improve references without the additional link to your BR.

tigerfeet2006

Nationwide will freeze and could possibly close that account. They will not let you, as a BR carry on as a customer. Additionally as Alistair states you will have a financial link with your OH and this is not a good idea for her. I would get myself off that account before going BR.

Though having said all that there has been 1 or 2 incidences on this board in the last 6 months of Nationwide letting a BR keep their absolute basic account when the person have filed but it is not a consistent thing and I wouldn't risk it.

RustyB

Thanks for your replies, having taken what you've said on I've paid all bills and cleared the Nationwide Account this evening and emailed requesting closure of the account should take 3-5 days, its been a bit mad to say the least, got my wife setup with a classic account with lloyds so will change my wages, bills etc to then go through her, I can then worry about getting an account later, after all whats mine is hers and whats hers is her own ;-).

Have already filled in most of the 6.28 form and printed 3 copies so will just have to adjust the Nationwide section and remove, I will be honest on the extra information and explain what I am doing as I don't want the OR received to think I am trying to pull any wool over their eyes.

Scary scary times, I feel like I'm doing something wrong when I know I haven't, this feeling of Guilt for not paying my debts and feeling like the OR is going to crucify me is horrible, looking forward to getting it all done now.

Thanks again for your advice guys and hopefully my hardword tonight will help in the long run.

dojoman

You have done the right thing re the Nationwide account, they told me it would be ok to use as they have you, they were the first of my banks to close an account of mine.

betterdaysahead

I recommend you get a Cashminder account from Co-operative before you go bankrupt. They will no longer allow you to open one after going bankrupt but they will not close your account if you do. This is what I done a few months before I went Bankrupt and they were great. Don't mention the BR plans - just tell them you want the basic Cashminder account. The advantage that this has over the Barclays account is that you have full internet banking facilities. In fact, you have everything you need - you can pay your direct debits, etc as with a normal account and will have a debit card. Barclays don't allow internet access during your bankruptcy.

BDA

alastairq

Re-the above?

If the OP plans to go ahead with the BR petition on Friday, there will not be time to open & establish a Co-op account.

I suggested further up this thread, the OP might want to cancel plans for this Friday [the Court won't mind]....to create time to open a Co-op account or two?

Putting off the BR petition for a month or two won't matter much in the long run.

However, if the OP is set on doing the deed on Friday, the only viable option will be to pop into Barclays on Saturday, and open a basic account?

RustyB

Thanks Alastair, I can't delay anymore, the phone calls the stress, the worry is getting to me I just need to do it.

Luckily as I said before for a while all my banking (salary, CB & Direct Debits) can go through my wifes acccount, we have already setup all the new Direct debits, changed my payroll etc, I can live without a bank account if it means not having any more worry about debt.

This time tomorrow I'll be on my way to court, feeling ridiculously nervous, now worried as I don't have Black trousers to wear so am going to have no choice but to wear smart jeans with a smart shirt hope this isn't frowned upon too much.

Problem with Barclays is I have a resolve loan debt still with £4500 on it, I might look at prepaid cash cards or some of the others, aslong as there is somewhere for my money to go and bills to be paid then I'm going to try not to worry about it too much, one hurdle at a time.

tigerfeet2006

You'll be fine with jeans as long as they are clean and pressed and not torn and covered in grease from fixing the car.

Barclays will open a Cash account for you once you've gone BR even if you have had a debt with them that went in the BR. They are quite forgiving and BR friendly.

philnicandevan

Dont worrry about previous barclays probs...they were one of my largest creditors when I declared bankruptcy over 6yrs ago and they were fine offering an account..