One major concern for people when they go bankrupt is the fact their bank account(s) will be frozen. You are allowed a basic account whilst bankrupt though, and getting one in place prior to going bankrupt is a wise move.

There also is the concern of those that have some debt, and they fall into arrears, and their bank takes money out of their account to pay the arrears, without their permission. Banks can be allowed to do this as they have a right to take what is in the account to offset any losses they may experience by your being in debt and in arrears with that debt to that bank. So if you are in this situation, opening a new basic account with a neutral bank, a bank you do not owe any money to whatsoever. This allows you more control over your finances, and if it is a basic account, you can be allowed to keep it if you were to go bankrupt.

Supposedly you can dictate in writing to the bank how you want any money paid into your account to be paid out, meaning you can have your priority bills paid first before the bank takes any fees or money as payment for any overdrafts you may have.

The issue of benefits being paid into a bank account and then that account being drained or having money taken out for a debt, is another issue.

Below is some information that may be helpful in both instances:

Clients Changing Bank Accounts

Or concerned about their wages being taken due to OD and/or fees

You have the right of appropriation with regards to your chequing account. This means you need to state, in writing, to your bank, how you want your deposits to be appropriated or how you want the funds dispersed. This means you can instruct the bank to pay your rent/mortgage standing order, utility standing order or direct debit, and any other PRIORITY standing orders or direct debts, before the bank may attempt to take your deposit to be used for any fees, charges, overdrafts, loans, debts to them, etc. This needs to done in writing and can be handed to someone at the branch, just ask for a receipt that they have received it, or provide the notice to the branch manager. In the notice you can state a specific time period for this to remain, you can make the beginning statement as open-ended as, “until further notice, all my deposits are to be appropriated and/or dispersed in the following manner:”

If you receive benefits:

You can do the above in addition to citing the Social Security Administration Act of 1992.
Certain Benefits to be Inalienable – 187 Subject to the provisions of this Act, every assignment of, or charge on – (a) benefit as defined by section 122 of the Contributions and Benefits Act; (b) any income-related benefit; or (c) child benefit, and every agreement to assign or charge such benefit shall be void and, on the bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors. **Inalienable = not to be forfeited**

This means your benefits cannot be taken in bankruptcy by the trustee or by the BANK to be used to pay a debt, fee, or charge, unless you say it is to be so.

I hope this helps.