Bank accounts / Direct debits following bankruptcy

farmerlamb12

Hi, we’ve just had our bankruptcy approved. (Our Debt is from negative equity when our home was repossessed due to redundancy)
We believed we had a basic bank account but unfortunately it’s classed as a current account and has been frozen. They have cancelled all our direct debits and we have no access to any money. We are in complete panic about our bills and money to live off as we’ve 3 children. We have applied to open a basic account so hopefully we hear back ASAP. Do we need to let all the companies of our DDs know that we’re bankrupt? Worrying about not getting car insurance approved etc. No car equals no work as we live rural. Any advice welcome please! 

MattMattMattUK

farmerlamb12 said:

Hi, we’ve just had our bankruptcy approved. (Our Debt is from negative equity when our home was repossessed due to redundancy)
We believed we had a basic bank account but unfortunately it’s classed as a current account and has been frozen. They have cancelled all our direct debits and we have no access to any money. We are in complete panic about our bills and money to live off as we’ve 3 children. We have applied to open a basic account so hopefully we hear back ASAP. Do we need to let all the companies of our DDs know that we’re bankrupt? 

You should let them know yes, and that you are looking to resolve them. Guessing that these are only Direct Debits for essential utilities? Have you contacted your OR? 

farmerlamb12 said:

Worrying about not getting car insurance approved etc. No car equals no work as we live rural.

Have you got the money to pay for your car insurance in full? There will not be an issue getting car insurance approved, but you will obviously not be allowed to take it out on any form of credit/monthly payment plan. Was the insurance cost agreed with your OR?

farmerlamb12 said:

Any advice welcome please! 

Do you have the budget you agreed with your OR? When will you next be paid? Start the referral process for your local food bank so that option is there as a backup.

ManyWays

Ask the OR to tell your bank that they are happy for you to keep using it. This should unfreeze it so you can move the money to a basic bank account.
This is usually sorted very quickly

RAS

Speak to your OR today about the existing account.

Get a new basic bank account. Not all accept BRs. This should have been explained to you earlier.

Co-op and Barclays were known to be BR friendly.

Go into the counters and talk to them rather than make on-line applications. Take ID and address details and you may be able to sort it there and then. Just their opening hours aren't always great.

sourcrates

Its always advisable to pre-plan for these eventualities, if you are considering declaring bankruptcy.

Withdrawing an amount of cash to cover basic bills is essential, even if you have to take it on a credit card that will vest in your bankruptcy, as without money, things can be very difficult.

The fact you have "clicked the button" so close to Christmas, may delay things due to the Christmas break, was there a need to action this in haste?

Its times like this when family and friends show their true worth, so don`t be afraid to ask for help, hopefully the OR will release these funds for you soon.