What will happen to my wages

[Nicki]

Hi there, just thought my wages are paid into an Abbey basic account on the 2nd to last working day of the month, I have been advised by Payroll its too late to change my bank details for this month.... what will happen If I am made bankrupt on Tuesday 20/11/07 will my direct debits still be paid rent c/tax bike insurance etc on the 1st of december? is it worth me asking abbey if they will close the account before i go bankrupt or wait till tuesday and then ask????

[MelanieGiles]

You will need to explain this to the Official Reciever and also speak to your bank to see if they are likely to freeze the account once you are bankrupt. If there is a risk of losing this money, you may be wiser to delay the bankruptcy hearing until your banking arrangements are sorted out.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Nicki]

I can't put it off any longer I have done for a while.... Tuesday is the only day I can go due to my shifts etc... am I likely to end up being behind on everything now ?? i.e rent c/tax because these are upto date so far..

[BrassicLintus]

Hi Nicki, are the Abbey one of your creditors? Is your account O/D and are you including it in your BR? If they are your creditors or the account is overdrawn it will be included in your BR and the Abbey may well snaffle some of your wages!!! If Abbey aren't your creditors and you're not O/D then all that will happen is the OR will "freeze" your account for a few days, but then if you explain that you need the account to pay utilities etc then I don't see any problem. I had the same problem - I went BR in between bank accounts so what I did was to phone all my utility companies/mortgage supplier and asked if I could make 2 payments the following month. Most were more than happy with this (except my mortgage and secured loan). Could your payroll deparment give you cash or a cheque for this months wages??

[queenie]

Can't you tell your employer that you have closed your account and so ask them to pay you by cheque this month?
BrassicLintus is right, the bank will freeze your account when they are notified of your bankruptcy, but the OR can unfreeze it immediatley. If you have an overdraft this is likley to soak up any money you pay in. If you have no overdraft allow things to continue, but when you speak to the OR from the court ask to speak to an examiner. Ask the examiner to contact the bank to let them know that they have no claim on your account etc. You should go to the branch soon after to make sure, and can phone the examiner from there to confirm it is all OK. The examiner will probably want the bank to fax a copy of your current statement to them also before they agree to release the account.

Queenie

[Nicki]

Hi Guys OR said I can keep one of my two basic bank accounts I have opted to keep my coop one because of debit card coop have said i can keep it open no problems.

[Nicki]

Heres an update get to keep my bike rec'd letter today stating can keep it whoopee !!!!its EXEMPT, having NiL tax code till april and paying £375 for 36 months glad this is finally sorted start paying after 31st December 07