bankruptcy

[fatclub]

i am about to go bankrupt i have my phone tv and internet with virgin media also a contract mobile does anyone know if i will be told to cancel these when i go bankrupt

[Buenchico]

You should be able to leave the contract in place but, if you've been paying by direct debit (or standing order), you'll have to make alternative payment arrangements since your bank account will be frozen. (Unless you're already operating a 'basic' bank account, with one of the two banks which permits undischarged bankrupts to hold an account, you'll probably lose your existing account).

Download the relevant leaflets, from here, for further information about bankruptcy:
http://www.insolvency.gov.uk/guidanceleaflets/ guides.htm#1

If you need a new bank account you're restricted to either Barclays or the Coop:
http://www.theanswerbank.co.uk/Business-and-Fi nance/Question777860.html

Chris

[themas]

1. My understanding is that, because you pay a mobile contract monthly in arrears, you are always a debtor of the company. All debts as at the bankruptcy date must be included in the bankruptcy - you cannot choose to exclude some. Therefore, when you go bankrupt this debt has to be included. The result is then that the company cancels the contract. I would be interested to know whether this actually happens to you. You can, of course, get a pay as you go mobile, or - if you have the money available - make an advance payment before going bankrupt so that you do not actually owe anything to the mobile company on the date of your bankruptcy.

2. The same problem could occur with your Virgin Media stuff. If you have a partner or close friend/relative who is willing it might be best to get the contract changed into their name before going bankrupt - always assuming Virgin will do so, of course.

3. The Official Receivers are not supposed to allow expenditure on broadband as an allowable part of your expenditure, but it is sometimes difficult to separate the broadband element of a contract from the phone/TV elements so it is not clear to me how this works in practice. But if you put down the cost including the broadband as one of your expenditure items be prepared for it to be queried.

[fatclub]

thanks to you both your answers have been helpfull i shall let you know how i got on

[lynniepie]

Hi fatclub, I went through bankruptcy 3 years ago and opened a cashcard account with the Nationwide (they call it a flexaccount) and I used that for all my direct debits including my mobile phone contract and my virgin tv.

Good luck with it