Bankruptcy & third party bank accounts

245

Comments

  • Twubble
    Twubble Posts: 80 Forumite
    Can't you open a current account with Nationwide? I have a normal current account, but the overdraft facility isn't activated. I had it before I took out my DRO, and when I went in and asked, they said it was fine to just keep it. Worth seeing if you can open a normal, just above basic, current account,
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi Kimberley


    A basic bank account should not require a credit check, do you know how they have found out you have other accounts open? It certainly should not be a blanket policy of all banks as lots of people open a basic bank account when they already have other accounts open.


    I would advise you to try some of the other high street banks. However be aware when you open a new account before bankruptcy, it will still be frozen when you are made bankrupt. If the OR has no interest in the account, it's then down to the bank whether to unfreeze the account or close it.


    Best wishes


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    Twubble wrote: »
    Can't you open a current account with Nationwide? I have a normal current account, but the overdraft facility isn't activated. I had it before I took out my DRO, and when I went in and asked, they said it was fine to just keep it. Worth seeing if you can open a normal, just above basic, current account,

    And just ask for no overdraft? Could do try yes
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    utterly_ashamed wrote: »
    Can’t you withdraw your money from your Natwest account before you press the BR button?

    You will need money to live off of etc whilst your accounts are frozen.

    Have you cancelled the direct debit for the CC ?

    I have cancelled them yes.

    What i’m worried about is Natwest taking my wages whilst the account is frozen and using them to pay my overdraft and CC that I have with them
  • utterly_ashamed
    utterly_ashamed Posts: 62 Forumite
    Yes but if you withdraw your wages before you submit your app for BR they won’t be able to be used to pay your overdraft etc ...

    Your overdraft will also be included as a debt in the BR.

    It’d be wise to time your application submission according to when your wages go in etc. You’ll need to set up a new bank account for your wages to go in to post bankruptcy anyway as that one will be frozen then closed as the debt will be included in your BR.

    Basically nothing will be going in or out of that account again once you’ve pressed the BR button so you’ll need to withdraw money that’s in there to live off off.
  • utterly_ashamed
    utterly_ashamed Posts: 62 Forumite
    Do you get paid monthly or weekly?
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    utterly_ashamed wrote: »
    Do you get paid monthly or weekly?

    Weekly but what happens to DD that may be due?
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    Do i open a current account and do the switching service for my DD’s as it takes 7 days apparently or open it today and just add my DD and standing orders myself
  • luvchocolate
    luvchocolate Posts: 3,254 Forumite
    First Anniversary Name Dropper First Post Home Insurance Hacker!
    no you need a basic account not a current account.
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    luvchocolate wrote: »
    no you need a basic account not a current account.

    But I can’t open one whilst i have a current account with another bank.
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