bankruptcy

[barnacle1234]

I am going bankrupt on 13th february can anyone tell me what happens does someone come round and seize all your possesions [engagement ring my daughters computer she is 13] i am in rented accomadation so have no house to take and i dont own a car

[themas]

It is extremely rare for you to be visited at home. You have to put on your Statement of Affairs your assets (only things you personally own so your daughter's computer would not go down). You exclude essentials of living - furniture, beds, cooker etc. unless very valuable (eg antiques) - and have to decide whether other things such as your ring are really assets based on their value (what they would fetch if sold); eg if the ring is a large diamond one worth several hundred � it would have to go, but if it is ordinary and would not fetch much if sold you might think it isn't really an asset.

After the Court bankrupts you a detailed interview is arranged with the Official Receiver (& you generally have to fill in more forms before that). They go over your finances in some detail.

Look at the Insolvency Service website for more info.

Are you aware your bank accounts will be frozen on 13th? If you have wages/benefits paid into them this can be a serious problem. The OR can be asked to instruct the bank to release money for essential living costs but this can take time. Put another post up if you need more info on this.

[barnacle1234]

thanks Themus for info thats a great help also what happens to my child tax credits and child benefit they are both paid into bank

[themas]

The ideal would be to have an account in someone else's name (a relative or trustworthy solvent friend) and arrange before your bankruptcy for the CTC and CB to go into their account, but you probably don't now have time to do this because there can always be some delay in the benefit people acting on your instructions to change. If you can't do it, then make sure you draw out all the money in your account so it is empty when you go bankrupt, tell the OR in your first phone conversation with them on 13th that your benefits are still going into the account and ask to be allowed to withdraw any money that goes in.

On 14th (but NOT on 13th) open a basic bank account with a bank that you do not owe any money to. These accounts do not allow you to go overdrawn and you do not have a cheque book. Nationwide is probably the best bet (unless you owe them money!). As soon as you have the account, ask Tax Credits and Child Benefits to pay future amounts into it.

[WoWo]

There is no way a bank will allow you to open account when you have literally just gone bankrupt. On the application they will say words to the effect of "are you currently or in the processes of going bankrupt" to which of course you would have to answers yes.

[themas]

WoWo - you are thinking of an ordinary bank account. Basic bank accounts are different, although some banks still carry out credit checks before opening them. Some - Nationwide, Co-op and a few others - specifically do allow bankrupts to open these accounts.