A Free Bankruptcy, IVA And Simple IVA, Insolvency Advice Forum

[needtodecide]

I have been divorced for some years and am now facing bankruptcy as a single parent. I know nothing about bankruptcy and am considering my options with £10k debt, but see that they can put a freeze on bank accounts!! I work full time and receive a monthly salary. The debt company i called yesterday advised me to open a seperate bank account with a bank who is not a creditor of mine and my question is... If i go bankrupt in my married name, and I change my name by deed pol back to my maiden name have I left the problem behind or not?? Is it possible to start a fresh bank account if I do as I've wanted to for years by reverting to my maiden name?? Please do let me know.

[Thomas]

Hi again NTD

The answer to your question is NO. When you go bankrupt you have to bare your soul and provide your current and all previous names including your miden names and swear a court affidavit to the truth of everything. You can open an account with a bank that is not a creditor (bear in mind it will usually conduct a search) before bankruptcy but this does not guarantee success because the bankruptcy will be published in The London Gazette to which banks and similar businesses have daily access. Most banks are inclined to automatically close bankrupts' accounts even if you dont owe them any money. HOWEVER, a few banks will allow you to open a simple account without cheque book or debit card, after the bankruptcy. Just a card to let you take out your own money. I understand Barclays and Coop and Nationwide have been known to be helpful in this direction but it all seems a bit hit and miss, even varies from branch to branch. The internet banks can be helpful, some even emphasising their desire to help those with poor credit. One or more of these could provide an account allowing your salary to be paid in and possible direct debits etc paid out - but no credit... These banks may make a monthly charge but it gets you out of trouble until you can improve the situation.

Are you still servicing your debts? i.e. seemingly (squeaky?) clean - havent yet defaulted? If this is the case I can let you know what I did to overcome/sidestep my bank problem. Of course, if you are prepared to divulge your relatively low amount of debt to your partner and he is solvent with bank account, your immediate problem is overcome.

But, as mentioned in my other post, you may not need to go bankrupt anyway.

Thomas

[needtodecide]

Hi Thomas

Thank you for the advice - much appreciated! The advice given by Debt Free Direct was to stop all direct debits of credit card payments asap and to send them a letter explaining that I cannot meet the minimum payment for the next 3 months. In 3 months time my son goes to school full time and my childminding fees come down by £150 so I really just need to buy time until then! They then suggest I sign up to a Debt Management plan to pay off the debt. They suggested Bankruptcy because I have no assets to protect but after viewing this site I see that my debt is relatively small compared to others which is why I'm confused as to what to do! Did you also have that fuzzy feeling in your head as you were trying to decide what to do, where nothing seems to make sense and you can't make sense of anything!! That's how I feel! I can't seem to make a decision on anything at the moment, even what to wear to work! I'm just terrified!

[youngbankrupt]

I had exactly the same feelings.

Remember its a big life change so you have seriously got to consider your other options.

Pop into your local CAB and see what advice they can give you