Bank account - before or after BR?

Lizzibuff

If you are thinking of filing for BR, is it best to open a basic bank account before you file the papers or after?

If it is before - is this account also frozen when declared BR?

fermi

Personally I think it is best to open one after BR with the bank fully aware that you are bankrupt. That way it won't/can't be frozen by the bank.

See the sticky on bank accounts by wherediditallgo for the ones OK for BR's.

http://forums.moneysavingexpert.com/showthread.html?t=474254

However, if opening one after is completely impractical because you need some continuity regarding payments in/out of the account, then the ones mentioned in the aforementioned sticky should be OK.
But be aware that there may be a period between you going BR, the bank finding out, and the OR telling the bank they have no interest in the account. For that short period even these accounts may be frozen. user55 will confirm this.

Lizzibuff

Ok Thanks for the help

rog2

There are two schools of thought here, lizzi:

If your income is, entirely or mainly, made up of benefits, which OR will not touch, then it is most unlikely that the OR will request the bank to 'freeze' your account, although the OR is obliged to inform the bank of your bankruptcy, and the bank MAY decide to 'freeze' the account, or reduce the status to 'basic'.

If you rely on your Bank Account for salary payments, it is advisable to arrange for your salary to be paid into another account, e.g. that of a partner, relative or close friend until after your OR meeting, when you can open a basic bank account with no worries.

Personally, I would agree with fermi and o for the second option.

Lizzibuff

Thanks for that.

Its a good idea to have my wages paid into someone else's account, id not thought of that and that would allow me to still retain my salary and ease the transition for all my s/o's etc