Bankruptcy questions

Ktalkz

Hello all, 

I've finally decided that bankruptcy is probably the only way forward for me right now and I think I have a good grasp on most of the process, but I just have a couple questions is anyone can help?

First of all, when your bank account is frozen, how long is it typically frozen for and how do you go about making payments in the meantime? I'm primarily worried about paying the rent and the pet insurance in the interim. The pet insurance is the main thing holding me back now as my poor old dog has a number of health conditions that the insurance company are paying for.

Secondly, will my Paypal account be frozen? This would be a nightmare because I'm self-employed and all of my income is paid via Paypal so I have no idea what I would do about that.

Thanks in advance.

emmajones1976

Will take a week or so, its not instant.

As for PayPal, do you owe them money? In which case: no.

Ktalkz

It's only frozen for a week or it takes a week to be frozen?

No, I don't owe Paypal any money thnakfully.

emmajones1976

The latter. It isnt "instant", in any case you should start to make alternative arrangements before you hit the button.

Ktalkz

Ok, thanks. I should be able to pay the landlord in cash, but what about things like pet insurance, how do you arrange to pay for them minus bank accts, credit cards etc.?

emmajones1976

You are still allowed a bank account. I suggest you do some further reading 

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/after-you-go-bankrupt/accessing-your-bank-account-after-going-bankrupt/

I would suggest the word "immediately" on that page is a red herring, it certainly wont be.

Ktalkz

Thanks, that link is a lot clearer. I thought I would have to wait a while before opening a new account. Is it difficult to get a new bank account once the bankruptcy has gone through? Sorry for  all of the questions, I'm feeling very anxious!

emmajones1976

No idea. I merely didnt tell them about the second one I had (zero balance, not used regularly) and just kept that, I certainly wouldnt suggest that as advice though.

Ktalkz

OK, I'll do some investigating. Thanks Emma.

luvchocolate

Research basic bank accounts ,no overdraft facilities. My basic account wasn't frozen,

Ph0enix83

I was advised to open a new bank account (basic) with a bank that didn’t have any connections to anyone I owed money to. And to transfer my wage payments and any direct debits etc over to that account before pressing go on the bankruptcy. I went with co-op and they have been absolutely brilliant.