Bank account muddle!

agarr

I have a small problem. My parents went bankrupt early this year and were told that their existing bank acc with the T.S.B would be frozen, However for the last month the bank THEMSELVES have been using the account for something (dunno what) and sending my parents statements of these transactions - IS THIS WRONG?
Also this week they were both sent credit card applications?
Is it against the court ruling for anyone else to move money into and out of a bankrupt account?
Would be glad if someone could explain as my parents aren't sure what's happening either.

JCS1

Hi,

Who told them the bank account would be frozen? The OR does not freeze bank accounts, but the banks can. Having said that, if it is their main current account (and is not overdrawn) then the OR often sends a letter to te bank saying the OR has not interest in the account - it is then down to the bank whether or not they keep the account open. May be worth a phone call to the case clerk dealing with your parents case to see what type of letter was sent to the bank.

And as for the credit card offer in the post - just bin them It takes a long while for banks and credit card companies to update their databases.

Toon_Dave

I think the first thing your parents should do is speak to the OR who is handling the case to advise them. They will contact the bank on your parents behalf.

under the terms of the BR, the account and its funds becomes the property of the OR and not the Bank!? i think. So they are transferring money/removing fraudulently by the sounds of it. Also im sure your parents will be refused the CC after the BR order, it may have just have been an automated thing to have new cards/offers sent to them.

Does the statements say what the account tranfers have been for? any codings or descriptions you can give us to assist.

It does sound a bit strange, maybe another poster will have more of an exact idea.

Dave.

Toon_Dave

JCS1 - i was under the impression that the bank accounts are frozen if its a checking or current account as its an asset that the OR holds during the BR period - the undischarged 12month period.

the insolvency website should give further detailed information.

Dave

JCS1

Toon_Dave wrote: »

JCS1 - i was under the impression that the bank accounts are frozen if its a checking or current account as its an asset that the OR holds during the BR period - the undischarged 12month period.

the insolvency website should give further detailed information.

Dave

Not quite true, If there is a substantial sum in the account, the OR will ask the bank to 'hold the funds' to the order of the OR.

If a modest every day amount, which is made up of wages/benefits, the OR will write to the bank, advice them of the BR, and authorise the release of the funds. It is then down to the bank whether they keep the account open or not.

Toon_Dave

i was trying to copy and paste info from insolvency web site but wont paste correctly.

It basically says that at the time of the BR order, the funds in the account become an asset for the OR, but will release funds for necessary items, rent, food etc...

However no mention of the bank being able to use it themselves...which i think was the problem. im still trying to come to terms with legal jargon etc so apologies if getting slightly confused...im sure its deliberatly written to confuse!

Cheers though JCS1
Dave

agarr

Thanks all, Will look it up.
The insolvency people put a letter out to the bank to tell them this account was to be frozen in January. We called the bank to ask what's been happening 2 weeks ago and they said that they could not access the account due to the bankruptcy order but then more money was moved into the account by their head office which was then removed by the local branch. I have a sneaky feeling they are using it to balance their bad debt before the end of year. Dodgy people!