Bankruptcy- Newbie

JCS1

56puddles said:

I am now at the stage where I need to pay £680 and get the process started with the OR office. I double-checked with CAB and understand the Insolvency Office has 28 days to accept or decline my submission. In the meantime, my 'new; bank account will be frozen.

During the 28-day period, my salary will be paid in and a number of priority direct debits will need to be paid this and early next month - is there some rule of thumb as to how long the OR office will take to determine if they will accept, or decline an application for BR?

Where did the information that you new bank account would be frozen come from?

flipflopflo

You can use your bank account as normal, there is no problem with that at all. 

fatbelly

As long as it's not overdrawn and not connected to your other debts your new account should be fine.

56puddles

JCS1 said:

56puddles said:

I am now at the stage where I need to pay £680 and get the process started with the OR office. I double-checked with CAB and understand the Insolvency Office has 28 days to accept or decline my submission. In the meantime, my 'new; bank account will be frozen.

During the 28-day period, my salary will be paid in and a number of priority direct debits will need to be paid this and early next month - is there some rule of thumb as to how long the OR office will take to determine if they will accept, or decline an application for BR?

Where did the information that you new bank account would be frozen come from?

Reply from the Insolvency Offices within 48 hours as follows - I have opened a basis account with nil overdraft facilities.

'There is a chance that your bank will not allow you to have certain types of accounts with them while you are bankrupt. As this is a matter between you and your bank, you would need to speak to them directly regarding this.

Your bank may also freeze your account once they are made aware of the bankruptcy. If this happens, contact the Official Receiver’s office assigned to your case and they will be able to fax or email a letter to the bank to unfreeze the account.'

luvchocolate

This is standard and only be frozen for a couple of days..or not at all. 
As said if frozen contact your OR and they will contact the bank saying they have no interest. 
The reason we thought it was strange as you seemed to be saying the OR had said it would be frozen for a few weeks

56puddles

I have read of others here voicing similar thoughts and opinions.

I've paid the money and submitted my petition and now feel absolutely ill with angst.  And, while I have been pushing for this moment to arrive, it reminds me when a close family member was about to pass away. I knew it was coming and sat by the hospital bed, holding the hand until the last breath.  It was an unusually hot, sunny period in early April 1997 and when I walked out of the hospital entrance at 06:15 hours, I felt relief that the end had come... and later, total emptiness - this feels very familiar.

Now I wait for 28 days.

However, in that time, I have a couple loans that will fall due in this period. I am very tempted to login to my 'new' bank account and cancel the DD's - would this be wise /correct thing for me to do?

I also feel I ought to contact the couple credit cards that are going to take a hit and let them know that I have submitted a BR petition - would this be correct thing to do?

Finally, many thanks to all for the moral support and help with working through the process.

Sonic101

Hi there

I can imagine the waiting is very painful.

However, I don't think you will have to wait 28 days. Haven't been through the process (yet) but as I understand it the 28 days is the deadline by which the adjudicator must approve or decline the bankruptcy petition. In reality it normally takes just a couple of days (and it is unlikely you will be declined!)

Yes, probably best to cancel any DDs or SOs to debt payments. You should not make any payments to creditors once you are bankrupt. 

No, you don't need to let any of your creditors know you are declaring bankruptcy, that will be the OR's job, but if they call you can give them your bankruptcy reference number. 

fatbelly

You should get your confirmation documents tomorrow or the day after. Well done

luvchocolate

Definitely cancel direct debits to anyone who you have listed on your application 

Minkym00

luvchocolate said:

Definitely cancel direct debits to anyone who you have listed on your application 

Agreed, you must definitely do this. Your creditors will probably be informed relatively quickly, but you'll have a hard job getting any money back that was paid to them after the bankruptcy order was made, even though they are not entitled to it.