Topic: Bankruptcy While on Benefits

[Sovereign]

Hi Kate,


You must include housing benefit and council tax benefit in income and then rent and council tax in your outgoings. Some of your exp will be a bit difficult to prove but in essence it all seems ok.


Steve

[Steven Jackson]

Hello Kate
 
I agree with Steve. Include the cost of your rent and c tax in your outgoings and the associated benefits to pay for them in your income so that these are visiable and can be understood.
 
I would perhaps reduce the clothing a notch to c£80 but include a budget for meals at school of say £50. I would also be inclined to take out the budget for holiday and christmas as this is always dubious but add a miscellaneous expenditure section of about £50. You could also add £10 for dental / optical
 
Given your surplus incomes is going to be less than £100 I do not anticipate you having any difficulty at all. As we have already highlighted, all of your income is derived from benefits and as such, I can not see any way a receiver will require you to make any ongoing payments.

[Kate]

Just another couple of questions. 
At what point will my bank account be frozen?
How many years bank accounts do they normally want to see?
How long will it be before the OR contacts me?
The bankruptcy form asks what date I last worked.  As I lied about being being in work, what shall I say?
 
 

[Steven Jackson]

Hi there Kate
 
The bank account you are using now will be frozen a few days after you are declared bankrupt. You should arrange to open a new account. You can actually do this before you declare bankruptcy but make sure you tell the bank of your intention so that they give you an account which they are happy to have when you are bankrupt. I suggest you speak to Co-Op or Nationwide as I know they are helpful.
 
There is no need to list this account on your bankruptcy application form but mention it to the OR when you speak to them. In this way, it will not be frozen.
 
Given that you have not been running you own business, I doubt the OR will want to see much history of your bank statements. I would be prepared with three recent months. Bear in mind, the OR can ask for more if they want to see them but I think this will be unlikely.
 
Generally speaking, the OR will contact you within a couple of weeks of you declaring bankrutpcy.
 
Do not lie on your bankruptcy form. Tell the truth about when you last worked. It is so extremely unlikely that this will ever be rasied as an issue.

[Sovereign]

Hi Kate,


Steven is right in most of what he says but your bank account is not always frozen. Talk to your bank and they may keep your account open for you albeit with as nil overdraft facility. The best bank for accounts after BR is now Barclays. Go to a large branch, take with you passport/driving licence and two household bills, tell them that you have been made BR and an account with Visa Electron debit card will be opended for you within five working days. DONT open the account until after you have been declared BR.


The rest of Steven's advice is spot on.


Good luck.


Steve

[Steven Jackson]

Hi Sovereign
 
You may be interested in this..... I have a friend who works at an ORs office and they have now been given a steer to say that if a bankrupt has opened a new bank account before they go to court but there are no borrowing facilities on the acount, there is no need to freeze it and it can be operated as normal.
 
This is helpful for the individual as they can sort their account and change over wages etc before declaring bankruptcy so things are seemless for them and DD payments such as rent and utilities are maintained.
 
I have used this advice with a number of clients so far and it has worked no problem every time.

[Sovereign]

Hi Steven,


BR gets better all the time and thanks for the advice. I will try it out on my next client and see what happens. Have just had an o/d account at Lloyds retained with the o/d written off!!


Good to see your posts on here as well. All makes for a good forum.


Cheers. Steve

[Kate]

You guys are something else.
BIG Kisses
 

[Steven Jackson]

Thanks for your support Kate. Its always a pleasure to give advice and help where ever possible.

[Sovereign]

And to you Kate. Best of luck