bankruptcy

[oakgrove]

we have currently a simple cardcash account at the halifax building society and we are in court on friday to file for bankruptcy the account is soley for wages to be paid into and for direct debits to come out of it this account is not a current account nor does it come with overdraft facility or cheque books will the account still be frozen and how will the utility bills will be paid for if it is frozen

[dzug]

Don't know whether it will be frozen or not, but most utility bills can be paid in cash at a Post Office or bank. You lose any discount for direct debit, and very occasionally may have to pay a fee, but loads of people do it.

[SaxyJag]

As long as you don't owe the Halifax anything, you'll probably be allowed to keep it operational. If they do get awkward about it, then get back on to the insolvency officer dealing with your case and ask their advice.

As long as you're totally honest with them, the insolvency service are very human people, and will understand that you need to keep a way of operating financially. When we went bankrupt they were a pillar of support to us - answered all our questions and kept us on the right side of the law all the way through.

[themas]

The account will definitely be frozen - the OR will instruct the bank to do this. Once the OR is satisfied that there is no money in the account that he should take for creditors he will unfreeze it BUT in almost all cases the banks then close the account. You may be lucky and get Halifax to let you keep on using it, but at the least there will be an interruption in its use. You could ask Halifax before your Court date what they will do, but I think they are one of the banks that normally do not allow accounts for bankrupts.

If the money in the account is just for living expenses make sure it is emptied before you go to Court - otherwise you could have a period when you just could not access your money.

What you could do the day after your bankruptcy is to open a new basic bank account with a bank that allows this for bankrupts (Nationwide, Co-op, Barclays) providing you don't owe the bank concerned any money. Then you need to get your next wages paid into it & set up your DDs.

[aliyahwestling]

Take a look at all of your financial options before filing for personal bankruptcy. Have you been through credit counseling first? There are many non-profit debt counseling services available.