Going Bankrupt a second time

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hoops1200
hoops1200 Posts: 3 Newbie
in Bankruptcy & living with it
I am considering the possibility of going bankrupt a second time. I owe around 4K on credit cards (with interest included) I am trying to see if I can get a family member to bail me out but I dont think that is going to work.


I have an account with Barclays Bank (Basic) I have a question if I go bankrupt I wont have an account to use which will cause tremendous problems. I wont be able to take another account at Barclays again (or can I?) and I dont think any other banking providers accept bankrupts.


I currently I am in mental hospital and have no form of income.


Any help appreciated.

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  • Annie35
    Annie35 Posts: 385 Forumite
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    Hello Hoops, I spoke with the official receiver this week for my own application & basically he told me they have no interest in me as I have no income either.

    They won't close my account & are sending me a letter to show Barclays on the off chance Barclays put it on a temporary hold. This matches other people's experiences I've read & hopefully puts your mind at rest for this aspect.

    Have you spoken to any advisors (stepchange/citizens advice) to see if you have any options available?
  • silvercar
    silvercar Posts: 46,968 Ambassador
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    A 4k debt is a very small amount in the scheme of things to make bankruptcy an option. can you make tiny payments eg £1 a month?

    I hope your stay in hospital in beneficial and your mental health improves.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • elsien
    elsien Posts: 32,761 Forumite
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    edited 13 January 2019 at 11:27AM
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    hoops1200 wrote: »
    I am considering the possibility of going bankrupt a second time. I owe around 4K on credit cards (with interest included) I am trying to see if I can get a family member to bail me out but I dont think that is going to work.


    I have an account with Barclays Bank (Basic) I have a question if I go bankrupt I wont have an account to use which will cause tremendous problems. I wont be able to take another account at Barclays again (or can I?) and I dont think any other banking providers accept bankrupts.


    I currently I am in mental hospital and have no form of income.


    Any help appreciated.

    If you're in hospital you can apply for benefits. Your consultant/Ward can provide evidence and sicknotes.
    ESA continues to be paid while in hospital and HB can be paid for 12 months.
    If you're in a universal credit area that can be claimed by phone as well as online but you need to tell them if you will have difficulty with the online account.
    You can also have benefits paid into the hospital client account for now if you need to.
    If you phone stepchange and explain your situation they have a dedicated line for people with mental health issues.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
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    Hi,

    Assuming that you have no assets, I would think a Debt Relief Order would be a more appropriate and far cheaper option for you.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • hoops1200
    hoops1200 Posts: 3 Newbie
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    Thanks for the replies all.


    Annie - You said about Barclays but if I declare bankruptcy I would have to declare the bank account and that would be subsequently closed?


    I want to remain with Barclays for obvious reasons.
  • Annie35
    Annie35 Posts: 385 Forumite
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    They closed a Santander account as I owed the overdraft, closing that account closed down the debt.

    They didn't care about the Santander current account or the Barclays I'd set up after declaring, so they let me keep both!

    They did say the banks might put a hold on the accounts but the OR had no interest & would give me a letter to this effect so the bank would release it.

    Have you thought if a DRO would be better for you? It's much cheaper.
  • fatbelly
    fatbelly Posts: 20,504 Forumite
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    In a DRO you don't declare your bank account, unless it's overdrawn and therefore a debt. Banks usually don't close accounts but may downgrade to a basic account.

    Your thinking that Barclays are bankruptcy-friendly is out of date - I wonder if you have picked up something on the internet from 10 years ago.

    Another advantage of a DRO is that you cannot DIY. You have to use a professional adviser - stepchange and CAB do most of them. They would look at the bigger picture and check what is best for you.
  • hoops1200
    hoops1200 Posts: 3 Newbie
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    Thanks for the replies - I DRO may be the way to go then.
  • silvercar
    silvercar Posts: 46,968 Ambassador
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    Nice to hear from you, I hope your health is improving.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
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