CAB recommending bankruptcy (SOA page 3)

allthe7s

I'm so cross! 
I specifically set up a basic bank account with Barclays to switch over as I have no debts with them, anyway I only got one half of my online banking log in details through the post so I went into branch today to get them, and while I was there double checked it was just a basic account (trying to whisper "because I'm going bankrupt") and she said no I've been set up with a normal account! Anyway I've spoken to someone on the live chat tonight and I have to go into the branch to change it to a basic account but he said the sort code and acc number will stay the same so at least I can start changing over some essential direct debits! How frustrating specifically asking for a basic one and them automatically upgrading it. 

ftb-btl

You should set up the basic account *after* declaring yourself bankrupt, otherwise the official receiver will freeze and seize the account.

Just open a Monzo account after declaring BR, they won't mind, and offer an excellent bank account, far better than any high street offering for a bankrupt rigut now 👍

luvchocolate

Banks don't always close basic bank accounts. It's up to them but mine and many others on here stayed open 

luvchocolate

ftb-btl said:

You should set up the basic account *after* declaring yourself bankrupt, otherwise the official receiver will freeze and seize the account.

Just open a Monzo account after declaring BR, they won't mind, and offer an excellent bank account, far better than any high street offering for a bankrupt rigut now 👍

Sorry just to add it's not the O.R who freezes bank accounts 

mwarby

Also a frozen bank account is better than a creditor just using your wages to pay off overdraft and then cancel the overdraft.

ftb-btl

luvchocolate said:

ftb-btl said:

You should set up the basic account *after* declaring yourself bankrupt, otherwise the official receiver will freeze and seize the account.

Just open a Monzo account after declaring BR, they won't mind, and offer an excellent bank account, far better than any high street offering for a bankrupt rigut now 👍

Sorry just to add it's not the O.R who freezes bank accounts 

That's as may be, you save yourself a lot of headache by opening your parachute account after declaring yourself bankrupt. It's not involved in the bankruptcy at all then. 

ftb-btl

mwarby said:

Also a frozen bank account is better than a creditor just using your wages to pay off overdraft and then cancel the overdraft.

Right, which is why you open your parachute account right after declaring BR and provide your employer with those account details right away

Monzo provide account number and sort code same day and my debit card arrived the next day. 

mwarby

Once your BR the bank can't set off(use money in one account to clear another debt in same insitution), they can before your BR, if you don't protect your income pre BR nobody else will, this is why I suggest getting a new account and getting income switched to it as early as possible

allthe7s

Thank you I have moved my money away from Santander, just a pain having to set my DDs up again! 

allthe7s

I've read back about 65 pages of this forum so far and now I have another question 

A family member gave me £8000 in November which I used to pay off my debt. 
Is that going to be ok with the OR? I had no idea I would be going bankrupt at the time (or I wouldn't have accepted the help)