Had telephone interviews - what next?

katyp

Myself and my husband have both had to declare bankruptcy due to a failed business.
We have both had our interviews with the Insolvency Service, very nice woman who had our outgoings in front of her but did not comment on them other than to say we would not have to make any monthly payments.

We were then sent paperwork to complete, and a letter to say our trustee had been appointed and the IS had no further involvement in our case.

Does that mean our outgoings have been allowed or is this something the trustee might get involved in?
We have two joint accounts together and two personal bank accounts each with a total of around £10,000 in, and all are still operating normally apart from a basic account my husband set up with Lloyds, which has been closed.

The IS woman has written to all of the banks telling them the service has no further interest in the accounts and they should be kept open, although she did say that the banks themselves often close them.
One exception to this is an account I had with about £5,000 in it at the time, and she said that account 'might' have to be frozen but it is still working as usual this morning.
I suppose my question is: Is that it? Has our outgoings been allowed? Might our bank accounts stay open?
Any experience welcome.

katyp

Forgot to say, my bankruptcy order date is 14 September, and my husband's was 4 September

Years_of_debt

If it was with the OR they are the ones who impose an IPA before your discharge. So if the OR has said you don’t need to make any payments, I would take that as your SOA has been accepted & your declared income not breaking the surplus by £20.

Be intrigued to know why they haven’t frozen/taken your £10,000. So the account with £5,000 is still active & your able to spend that money as you choose?!
I’m 99% sure these current accounts will be closed and only a basic bank account allowed. You said the basic account has been closed, why was that?

katyp

Hi Yearsofdebt, the telephone interview was with someone in the Insolvency Service - I assume that is the OR (or someone in their office)?
They just asked about the value of our assets, commented on how unlucky we had been and said we would not have to pay anything monthly as our outgoings were more than our income. That was because we had put some fairly outrageous outgoings into the form anyway, on the basis that the worst that could happen was we would not be allowed them.
Bank accounts: My husband called Lloys and asked them why they had closed the account (a basic one). They said because he was bankrupt and he would have to go into a branch so they could decide whether he could have a new one or not. There was no money in the account anyway.
The other accounts - yes, they are still all open and operating as usual. I am sending the same £5 backwards and forwards every morning to check. The letter from the IS to the bank (she sent us copies) stated that the accounts should remain open and the balance was ours and should be able to be accessed.
The woman from the IS even told my husband that it as his money, so he had every right to spend it as he wished.
It all sounds a bit too good to be true and not at all what we expected.

Years_of_debt

Cool I’m a bit confused, hoping someone chips in more knowledgable soon!
I don’t get how they are allowing you to keep the money when your declared bankruptcy. - my understanding is that you’re bankrupt as you can’t afford to pay your debts, all money & assets taken to pay your creditors.
But happy days if they are letting you keep it?!?
All the best

katyp

just did my usual £5 shuffle and all account are still open.
Joint RBS One account
Joint Starling account
Husband's Starling account
My Starling account
My First Direct account.

The only casualty so far is my husband's Lloyds basic account - opened ironically to use after he declared bankruptcy.

philnicandevan

If your interview was the 14th of sep it's early days yet for banks to do anything.....most will close EVENTUALLY just a matter of time really

broaps

Hi Katyp

Do you owe any money to these banks for eg credit cards so the cash might be "offset"?

katyp

Yes, that is my thoughts too. It would just be useful to know WHEN!
It's difficult to know which bank account to get ages paid into, and it's very tempting to just SPEND it, if you see what I mean :rotfl:

katyp

Hi Broaps,
No the vast majority of our debt is Personal Guarantees on business debts.
We owe nothing to these banks.

katyp

Can anyone advise me if our SOA has been accepted or is that hurdle still to come?