money in my savings account when going bankrupt

[a.c]

How much money can I keep in my savings account when going bankrupt?

[queenie]

Hi a.c

None I'm afraid. Savings are surplus income and therefore you have to pay this over to the Official Receiver.

Queenie

[welshman]

i don't think that's really true. When you go bankrupt, if there is money in your savings account then this may be claimed by the OR (so take it out before going bankrupt. if it's not very much you can say it's for living expenses or perhaps there is something you need to replace?). After going bankrupt you may have a surplus of x pounds after the living expenses and IPA (if you have to pay it) are taken out (as the OR will only take a PERCENTAGE of the surplus) and that surplus is yours to do with as you please. If you want to save it that's up to you.

[debbiw]

I would have thought if you were declaring yourself bankrupt, then you would have to hand over any saved money to go to your creditors. Skippy will know, she will be on soon,

[Skippy]

When you are declared BR money in any bank account must be declared to the OR as it will then form part of your BR estate. Once you have been declared BR you can save money from your allowances and also from your surplus.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[wen]

I would think it would be better to have this money in your normal bank account rather than a savings account (unless it's a lot!), and depending on the amount you may be able to claim it's for living expenses.

I should add that queenie used to work in an Official Receivers Office, so is probably a good source of info.

[Adam Davies]

Hi
Just to confirm that Queenie is correct in that any money in your accounts at the time of bankruptcy will pass to the OR,it will then be upto them to decide what happens to it.
Welshman is correct in that an income order will only be for a percentage of your disposible income but this will not be determined on the day that you are declared bankrupt as it will take several weeks.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[BECKY]

This is not a pop at the original poster but how can anyone in debt have savings , and surely by the time iva or bankruptcy becomes an option those savings will have been used to pay debts off. Maybe im naive but I dont understand!!!!!

[ray_a]

Becky

I suspect they are only a small amount and was there to cover things such as food if funds run out!!!!