Starting Bankruptcy

Yogibare77

Hello everyone,

I am at the stage of filling out my bankruptcy form online, a family member is loaning me the fee so everything so far seems ok.

My question is about my bank account. I'm concerned that it will be frozen and I won't be able to pay my rent, bills and child maintenance. I have read somewhere that I could have my wages payed into a family members account and my bills come out of there. Is that ok to do while applying for bankruptcy? I hope someone can help.

Many thanks

National_Debtline

Hi there,


You can do this if you prefer, just make sure that you keep a record of who's money is whose, just in case you are asked to clarify later on. Alternatively you can open a basic bank account, with a bank you do not owe any debt to, who will allow you to keep the account even if you are bankrupt - these accounts are less likely to get frozen because you would need to reopen the same thing after.

You can look at our factsheet for more help with this - https://www.nationaldebtline.org/EW/factsheets/Pages/basicbankaccounts/openingabasicbankaccount.aspx


Laura
@natdebtline

Yogibare77

Thank you Laura. I can use one of my mothers accounts that she doesn't use much.

I had a debt with Nationwide many years ago and it is now with a debt recovery company and I am paying it with my DMP. Could I now open a basic account with Nationwide as the debt has been moved to a different company?

National_Debtline

There is a small risk of the debt being passed back to the original lender so I would suggest you try a completely new bank, just to be safe.


Laura
@natdebtline