Post Office Card Account in Bankruptcy

[seniorcit]

I am receiving a State Retirement Pension although at present I am still working. Due to a recently diagnosed health problem I may have to stop work and file for bankruptcy as I will not be able to pay my debts. I know that as a bankrupt I would find it difficult to set up a basic bank account. My question however, is this. As a bankrupt can I still hold the Post Office Card Account into which my State Pension is paid, or will that be closed too, along with my existing bank account?

[sandmaster]

As far as I can remember you will need to inform the Post Office and they will write to your Trustee in Bankruptcy for permission to operate the account. He will no doubt agree subject to certain conditions (which cheques they may or may not collect for you, for instance). And the P.O. may refuse to operate an account in these circumstances. This type of account cannot go overdrawn so that is one condition that will be ignored.

[themas]

I think the account will get frozen when you go bankrupt. This is done by the Official Receiver (you must list the account on your bankruptcy form) in order to check whether there is surplus money in the account. Once this check has been made the account will be unfrozen.

It is not an account that can go into overdraft, and (I believe) can only be used for benefits so I don't see any reason why it should be closed. However, the decision on this is one for the Post Office and not the Official Receiver so you need to confirm it with them.