Thinking of br

[suz]

Intending going br. What happens to my money which is only pensions? post office accounts I believe you cant have pensions going in? how quick and where can i get my pensions into?

[freelili]

Hi suzz

I assume you mean a weekly pension? I had this problem with my sons DLA I was told it could be sent in a giro in the 'between' bank period. Usually the OR will say to open an account on the day. Or you coulod open an account now (Nationwide, Barclays, Co-op) and keep a nil balance until afterwards, the OR will not be interested in it.
Hope this helps

LILY

[suz]

My income is purely pensions i.e. state and company pensions. I was advised that I could get these sent to my relatives account so that I would have money available whilst bankruptcy going ahead and my account will be frozen. I assume this is OK?

also I assume i will need to advise the bankruptcy people when I go bankrupt?

[freelili]

Well if this is what you have been advised.....

It might be a bit easier to leave it where it is now (unless its with one of your creditors)Then just before the BR order remove the cash and start with a new account. It would save pushing money around, comuunicating this to the OR and changing/cancelling credit transfers. I do believe your accounts are frozen on the day.

LILY

[suz]

If I leave it where it is - are the direct debits cancelled ? how long would it be before I can use the same account?
I thought you could not use the same account. I am concerned about my health ins which needs to be paid and also car insurance. So is it still better to leave it where it is and have it frozen? then what?
Suz

[freelili]

Suzz

I had these same issues when I was going BR, it really depends where it is. I was advised that Nationwide, Co op and Barclays are the only banks that accept undischarged bankrupts. I cancelled all my DD's and standing orders and made payments on my card for car insurance Tv licence etc. Then it was my intention to withdraw all cash just before the order was made and open an account on the day of BR. If your money is with any other bank, they will ask that you close the account, the OR will freeze on the day. Therefore you will loose any money in there. All of the people you pay money to and all of the people paying money to you will be informed of the BR. I hope this helps you
I am not an expert just another person dealing with debt

LILY

[MelanieGiles]

Hi Suz

That is good practical advice from Lily. Keep the money in your account until just before the bankruptcy hearing date - you will have been forewarned of this as it is your application, and then draw it out in cash. Tell the OR that this is what you have done, and that the money is needed to fund your ongoing living expenses. They will be happy to sanction the opening of a new bank account, as this quite normal procedure.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[suz]

Thank you. However my real concern is my money going to the bank that will be frozen - i.e. my pensions. state one and private ones.
Should I now get my pensions paid into someone else's account? family.

I understand if money is in there I can cash it before the BR.

But money will go in once I am declared BR and itwill be part of the BR ?

Suz

[freelili]

Suzz

You could ask the people who are paying you the money to send you a cheque which you could cash at the post office or pay into you new account, I had these exact same worries. I phoned the people who pay my sons Disability and they said they would not pay any further money until I had my new account and would send a qiro cheque. If you know when your money is due in, arrange a court date for BR after this time so that you can whip it out before the order. No money will go into the account after the BR as the account will be frozen. It will only be a very tempory problem for you. Then you can open your new account set up your DD's and SO's and have your pensions paid into it,usually the OR will give you permission to open another account on the day of BR.

I know this is a difficult time but it will work out OK for you.


LILY

[MelanieGiles]

Hi again

So make sure that you draw them all out the day before the bankruptcy hearing, and from then on they can be paid into your new bank account.

If there is some risk that payments will be caught up in the timescale between you being made bankrupt and your meeting with the Official Reciever, there is nothing wrong in asking for them to be paid to a family member.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[suz]

I can probably work that out. Cash all before the BR day and any monies due in after BR will not be able to go into the account and therefore the company will be touch with me to find out where to send it to? Is that what happens.
I have a nationwide account so only left with coop to pen a new account
and not sure if we have one in the area.

[MelanieGiles]

That sounds sensible Suz - let us know how you get on.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jamesfalla]

Suz

I deal with 3-4 people declaring bankruptcy every week. Any bank accounts you have at the time of your bankruptcy will probably be frozen by the court. If your accout is just a card cash, then the OR may decided that it will not be frozen. However, I prefer to be safe than sorry so would always advise that you plan to open a new account.

Your old account will not be frozen until c14 days after the bankruptcy has taken place. This should give you time to open a new account a day or two after you are declared bankrupt. You can then arrange for your money to be paid there.

As Melanie and Lily advise, you must draw out any cash balance from your old account before your declare youself bankrupt as doing it afterwards is officially not allowed.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[suzz]

Hello can any one advise, is it just bank accounts that are from people going bankrupt frozen or is it from people going into iva's as well.

Thanks

Suzz

[MelanieGiles]

Hi Suzz

Overdrawn bank accounts in an IVA would be frozen, and the overdraft facility would be treated as a debt, but credit accounts are usually left alone.

Having said that, I have recently learned that HSBC have been closing customer accounts where the party is subject to IVA proceedings, so you do need to be careful who you choose if you are in this position.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk