Access to accounts after Bankruptcy

Hi all, I have been browsing the forums for a little while now, and just wanted to get some specific answers to my situation.

It's looking likely that I should go the Bankruptcy route (50k debt, no appreciable assets and rent a property), just need to confirm this with one of the advice charities once I have all my figures together.

Have checked my employment, only glitch would be my security clearances, but they aren't a required part of my employment, so it should all be fine. However, for my job I do need access to a bank card to pay for parking (which can be quite hefty because of the places that I sometimes work). I can always claim this money back, but it takes a couple of weeks, but hardly any parking accepts cash now, so would need to be by card.

So my question is regarding bank accounts. I have a seperate bank account through Starling, which has no overdfrat facility and nothing is owed to them. I am now using this as my main account, to make sure all my essential bills are paid. A friend of mine went Bankrupt about 15 years ago (when you still had to attend court) and he says that all his accounts were immediately frozen and he then had to open a new account. His main account had no overdraft and he was in good standing with that particular bank. So I have read on here that if it's your main account, they will usually leave it open for you, have the rules changed on this then? Will my Starling account get frozen for a couple of days while they look at my accounts?

The other option I would have would be to load some money on a prepay card for use when parking, but if I do that, would that also be frozen by the OR?

I'm just basically trying to get my head around the timings of when I should declare.

Also, if I file in March, does that mean the income tax/council tax situation (where you don't pay any and just forwward on what you would pay to your IPA) would only last until the 5th April, or would it roll over to the financial year ending 2024.

Sorry for the essay, and many thanks in advance for any help.
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Comments

  • luvchocolate
    luvchocolate Posts: 3,254 Forumite
    First Anniversary Name Dropper First Post Home Insurance Hacker!
    Hi banks can vary what they do when told by the O.R of your bankruptcy 
    Usually if it's a basic account and used for your day to day living its not frozen but as I said it's up to the bank. 

    My son put me on his credit card as the statement/bill is solely in his name and I got a card in my name..he was responsible for this account and I used it purely for emergency. 

    Also check your car and contents insurance..my contents insurance was cancelled by the insurers but when I informed Aviva my insurance for car was fine 

  • kevker23
    kevker23 Posts: 36 Forumite
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    Luckily, it's a company car, so that won't be affected. Contents insurance I pay monthly by DD, so I'm assuming that will get cancelled and I'll have to pay upfront for a year rather than paying monthly?
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
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    edited 6 February 2023 at 5:29PM
    Hi, is the info in the following link any good? It's from the government so it should be of some help.

    https://www.gov.uk/government/publications/guide-to-bankruptcy/guide-to-bankruptcy

    Good luck with it all. I had a DRO a few years ago and that is similar to a bankruptcy so I know how intimidating it can all feel. But I came out at the other end. Older and much wiser about finances.

    StepChange was the debt help agency that helped me - I hadn't even heard of a DRO before I contacted them. 

    [Edited as I forgot to put the link. Duh.  :) ]
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • kevker23
    kevker23 Posts: 36 Forumite
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    Hi MalMonroe, yes I'll be speaking to stepchange before I make a final decision. I think you missed the link in the post.
  • luvchocolate
    luvchocolate Posts: 3,254 Forumite
    First Anniversary Name Dropper First Post Home Insurance Hacker!
    kevker23 said:
    Luckily, it's a company car, so that won't be affected. Contents insurance I pay monthly by DD, so I'm assuming that will get cancelled and I'll have to pay upfront for a year rather than paying monthly?
    Some companies will not give contents insurance to bankrupt so make sure you check the assumptions 
  • Czeskyy
    Czeskyy Posts: 34 Forumite
    First Post
    Hello , 
    I have become bankrupt just last month and unfortunately all my current accounts ware frozen although OR sent letters to banks with request of keeping accounts open and that he is not interested in those accounts.
    Same time just before I gone bankrupt I did call banks and inform them about my situation and ask if I will be able to use my account to receive wage and pay bills, they reply yes of course no problem as long u t in credit nothing to worry... Then bum all accounts frozen, fortunately I live with my girlfriend and I was able to transfer everything on her bank account forehand otherwise I would be without any money.

    Please be careful with bank and don't trust what they say unless You have written confirmation.


    Now I did opened basic account in Santander and putting everything in right place.

    Ps You may consider temporary solution like Revolt or similar. 

     


  • Starling tends to be very bankruptcy friendly and not freeze bank accounts. 
  • kevker23
    kevker23 Posts: 36 Forumite
    First Anniversary First Post
    Many thanks. I've heard the same about Starling, the only worry I have is if they do freeze my account, there is no physical branch that I can go into to get any money.

    What I'm thinking of doing is applying just after payday, when the majority of my bills come out, and withdrawing enough cash to cover my living expenses and the remaining bills for the rest of that month (obviously declaring on the bankrupty petition that I am holding that cash, then I can explain why to the OR in the interview). That way I'll at least have enough cash to get me through until I open a basic account if the worst happens.
  • That’s a sensible thing to do if you’re not sure. Let us know how Starling reacts to your bankruptcy. The more feedback we have the better it is for future posters. 
  • kevker23
    kevker23 Posts: 36 Forumite
    First Anniversary First Post
    I certainly will, will also update on timeframes etc.

    I'm not sure if I should start another thread for this question (if someone can advise and I'll do so if needed). Just looking at the form, and you have to list all your assets, with a value. Now, is that value from new, or what you would expect to get now? For instance, if I bought a TV for 1k 5 years ago, you would be lucky to get 200 for it now. So what figure would I put? Also, do I need to list all clothes, furniture, cutlery etc, or are they not looking down to that sort of detail?


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