Bankruptcy and Bank Accounts

[Hugh]

It is almost inevitable that my son will have to file for bankruptcy.

 

His only income is benefits being paid into a basic bank account opened recently in the post office for that sole purpose.

 

 

 

The account has no cheque book or debit card, no facility to set up direct debits or standing orders, no credit facility, just a cash card that can only be used at the post office counter to withdraw cash.

 

Doing a bit of research into the effects of bankruptcy, I understand Bank accounts may be frozen.Is there any chance that this type of basic account can be exempt from being frozen if he is declared bankrupt.

[callumsgran]

Hi Hugh, i would've thought its very unlikely for this account to be frozen as its the sort of account that pensioners and benefit claimants open to be able to access their money from the government yes? In that case i think he will be ok! give the CAB a call they will probably put your minds at rest! Hope this helps?

[Hugh]

Thank's... Helps a lot.

 

Will contact CAB tomorrow.

[emijen]

Hi, I was made bankrupt in February of this year. As soon as i had finished in court i went to my bank and told them what had happened and they changed my account to a basic account then and there. Have to say if your son is on benefits and does not own his own property it will be the best thing for him, but you do have to contact a financial advisor before you take it to court, you can also see the financial advisor type person at the CAB. It's not as painful as you think so chin up!