BR - Freezing bank account

[fudge34]

Hi There
Just a question that has been bothering me. I wanted to go BR in a couple of weeks time but understand that the OR freezes your bank accounts. I have a current account with Smile that is OD - I have already cancelled all my direct debits to my loan companies in order to raise the funds to go BR this month but what I do with the rest of my wages - as I still have my utlity bills, council tax etc that comes out of this account which obviously I cannot just pay. Also with the spare money that I have will this be frozen too? Should I move all my money out apart from the cash to pay my bills before going BR? just don't want to be left with no money for a month until I get my new bank account set up! thank you!

[MelanieGiles]

Yes - this is a good idea. Leave enough money in the account to pay your normal bills, and use the cash to fund your living expenses until the bankruptcy order is made.

I suggest that you get a new account opened now, with a bank to whom you do not owe any money, in readiness to receive you next lot of wages.

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

[fudge34]

As ever thanks Melanie! Will the OR not mind seeing a huge amount of cash well three or four hundred quid being moved from my current amount prior to going BR - I thought they had strict rules about people taking money out prior to going BR - I have already opened a new account with a non creditor A & L as I did this when I thought I was going to do my IVA and my wages are now going to be paid into this one. Thanks again! Just hope that A&L don't close that account as then I will be back to square one looking for a new bank account : )

[MelanieGiles]

That is no a huge amount of cash, so the OR will have no problem with this.

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

[jane.l]

We have been bankrupt for nearly one month now and the bank account has still not been frozen! I am worried about this, we listed the overdraft as a debt but since the bankruptcy date, the account has incurred nearly £700 extra in bank charges because the account was not frozen!!!!!!!!!!!!!

[Max Hamlet]

It is a common misconception that it is the OR that freezes accounts, it is the banks that do this. They sometimes tell customers it is the OR's decision in order to avoid confrontation with customers.

The letter the OR sends out merely declares your bankruptcy and asks how much is in the account, no further advice or instruction is given

[enty01]

I realize this is an old thread - but I have a question related to bank accounts.

I intend to petition in 3 weeks & have a bank account into which my salary is paid & direct debits taken from.

I also have a second account which is a couple months old - but which I don't use.

Will this second account be frozen?

Thanks

[kallis3]

The second account will probably be ok - which bank is it with and which is your main bank? HSBC and First Direct will close an account even if you have no debt with them.

As regards your main account, make sure you have enough cash out to tide yourself over until the account is free again, if indeed it is frozen.

[MelanieGiles]

Both accounts will be temporarily suspended until the Trustee can ascertain your needs and discuss their strategy with the banks concerned.

[enty01]

Main account is a Halifax EasyCash account which I have held for 12 years.

2nd account is a Readycash account with Yorkshire Bank opened about 6 weeks ago which I haven't used.

You are saying that both accounts would be affected/restricted - how would they know about the new account If I didn't mention it when filling in my forms - it has a £0 balance and my intention was to use it after the BR has been processed

Thanks