Thread: to close account or not?

my friend is getting some money back from her bank for something they took they shouldn't have, its 600, but she is going to cab on the 4th of jan to claim bankruptcy but he money wont be return to her account by then, and then when it is we are guessing the bank will then take it back agin to cover her overdraft. is there anyway she can keep the refunded money once put back into her account?

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Surely if she goes bankrupt then the £600 will be taken by the OR to pay creditors anyway?

yes this is true, but she is hoping to get the cash to give to other creditors opposed to it going straight to the bank as this was taken form her own money by mistake by bank.

Originally Posted by beckygunner84

yes this is true, but she is hoping to get the cash to give to other creditors opposed to it going straight to the bank as this was taken form her own money by mistake by bank.

She should be extremely careful giving preferential treatment to one creditor over another; it is illegal. She MUST give all the creditors equal treatment and if that means that 1% of each debt goes to each creditor then so be it; she would have to write to each creditor saying "I cannot give preferential treatment to you over any of my other creditors and with that in mind I enclose a payment of x% of the debt I owe you; this is the same percentage being paid to all of my creditors."

If she is made bankrupt, all her creditors will receive treatment similar to the above.

That's presumably why she does not want the money going into the account ... it would give the bank preferential treatment.

Tim

Ah, right, I was thinking in terms of people setting up new bank accounts before suing their old bank for charges to accounts on which they are overdrawn.

What you want is the bank to refund your money in the usual way, by paying the court. You get the money from the court, and pay it into your usual bank account. You then pay off debts with it, treating all non-priority creditors alike.

Tim