FAQs | What Happens When You Become Bankrupt?
The trustee will not be a signatory to your bank account. You can operate your account as you always have per normal.
There are however a couple of points to keep in mind in relation to bankruptcy and bank accounts.
Firstly, you can only have standard savings accounts, you cannot have high interest or offset accounts.
Secondly, when you become bankrupt your trustee is required to notify your banks that you are bankrupt. Some banks may automatically freeze your accounts. If Nicholls & Co are administering your bankruptcy and this happens to you, let us know and we ask the bank to unfreeze your bank accounts urgently. The accounts will usually be unfrozen the same day.
Thirdly, during your bankruptcy, for the trustee to perform income contribution assessments on each anniversary of your bankruptcy, the trustee will ask for copies of your bank statements.
Nicholls & Co have a complementary ‘help desk’ to answer your questions on bankruptcy. Call Nicholls & Co on 1300 060 122 or email email@example.com.