Will your bank account be frozen?

Following the making of a bankruptcy order the Official Receiver's office will be quick to ascertain your bank account details. This is because one of their main duties, as well as investigating you, is to protect your assets for the benefit of the bankruptcy estate. Clearly if your bank account is in credit then they will seek to protect those monies.

Once the Official Receiver has your bank account details they will inform the bank that a bankruptcy order has been made against you. This will either be immediately by phone or within 5 days in writing.

This notice will provide the bank with the Official Receiver's wishes on what should happen to your account and how the funds in it should be dealt with. This may involve the freezing and subsequent closure of your account.

If you wish to keep use of your account then you should inform the Official Receiver. It will then be up to the bank whether or not they allow you to continue using the account. It if is a current account then this is unlikely.

As your bank account may be frozen it is wise to make alternative arrangements for paying your bills and receiving your wages. This is where a guaranteed bank account will come in useful. There is nothing preventing you opening one prior to bankruptcy and provided the funds in the account are all you need to live on the Official Receiver should have no problem in allowing you to continue using the account. For more information about opening a bank account before or after bankruptcy go to the guaranteed bank accounts page or the basic bank accounts page.