Bankruptcy & Bank Accounts Query

Happy_bunny

I understand that upon registering for BR my current bank accounts will be frozen and I will need to open a Basic account, for use during BR.

Can I open an account now - prior to making the application or would the basic account also be frozen upon BR?

I'm not in any debt with my current bank, Halifax Rewards account but would prefer to set up the new account in advance to ensure its all OK in advance.

Is this correct? Hope that makes some sense?

74leeboy

I was told by the OR that it was better to wait until you are bankrupt.

peterkay369

No, don't wait until you are bankrupt.

Open a basic bank account before you apply for bankruptcy. Nationwide, Barclays, Co-Op etc, plenty of banks/building societies now offer these. Personally I use Nationwide and it's a brilliant account.

Have your wages/benefits/income etc transferred to your new basic account. Do not use any account "switch service" as this will also move direct debits across.

This way you have everything set in place ready for your bankruptcy application.

Just before you press the button too, withdraw a couple of hundred pounds in cash just to keep you going, enough to cover any immediate bills and live on in case your new account gets frozen.

List your new bank account as your "main" account on the BR forms, your OR will usually write to the bank following your application being approved and will inform them that they have no interest in the account, providing the bank is not a creditor. Worst case scenario the account will get frozen temporarily, but you have the withdrawn cash to tide you over temporarily.

Hope this helps.

Happy_bunny

peterkay369 wrote: »

Hope this helps.

Answers a few questions certainly! Can I use the new / basic account for DD's before the BR or not?

Also does nationwie offer any online banking ect on its basic account? Literally cannot get to a bank in person so need this at least!

Nomoredebt40

I use my bank account normally.
The only mention of freezing my bank account was from Step Change.
I assumed it was going to happen but the AIB have never mentioned it.
I use my bank account as I ever have and as far as I'm aware, they have no access to it.

Stanai

I am also about to file for bankruptcy as soon as I get the £680 fee. I have 3 accounts with Nationwide, Barclays and Lloyds. I phoned Lloyds today and they said that when I go bankrupt my accounts will be frozen and any balance will be sent to me in the form of a cheque. I would then need to apply for a basic current account at the soonest possible opportunity. It can take 2 - 3 weeks to open a new account including receiving debit card and pin, so keeping a little bit in cash to tide you over sounds like a good idea. My concern is where do I receive my benefits payments whilst waiting for the new account to be up and running. You usually get your account number and sort code at the interview in branch, so you could start having money paid into it, and perhaps withdraw over the counter with ID, or the other option which I might take, is to have my benefits paid into a relatives account until everything is sorted. The other thing is having to set up and transfer direct debits, with hopefully no delay in things like gym membership etc.

Helpmeoutofthismess

Happy_bunny wrote: »

Answers a few questions certainly! Can I use the new / basic account for DD's before the BR or not?

Also does nationwie offer any online banking ect on its basic account? Literally cannot get to a bank in person so need this at least!

Yes you can transfer all of your DD's over and use the account as your main account before you declare bankruptcy. It's possible it will be frozen for a few days so try to time your bankruptcy just after your monthly payments have gone out.

The nationwide flexbasic account is just like a normal account, you get a debit card with contactless, you can use mobile and online banking even while you are an undischarged bankrupt. You can even use apple pay/android pay if your phone supports that. The only things you don't get are a cheque book or an overdraft.

Good luck with everything, H x

peterkay369

Happy_bunny wrote: »

Answers a few questions certainly! Can I use the new / basic account for DD's before the BR or not?

Also does nationwie offer any online banking ect on its basic account? Literally cannot get to a bank in person so need this at least!

You can use it for DDs yes, add these manually rather than using a switch service, that way you wont be adding any creditors to it.

Yes, online and mobile banking, contactless card, it's basically a normal account just without an overdraft facility.