What Would YOU Do??

[chrissa1]

Before I petitioned for Bankruptcy in December, I had a Savings Account that I used to put my Housing Benefit into every month so that it would be safely tucked away until I had to pay my rent.

I've just been told that I'm only allowed to have one bank account and so the Savings Account has been closed.

Question: Should I take this money out in cash when it comes in and keep it safe, to be put back into my account when I have to pay the rent?

OR: Should I leave it in the account?

Anyones's thoughts would be gratefully received. Thanks.

[sasskins]

Why not get your HB paid direct to your landlord?

[boxtops]

I wouldn't keep cash anywhere, just leave it in your remaining bank account.

[sherrardk]

When I was in your position, I used to take all my money out and only use cash to pay for everything - paying my landlord directly (cash into his bank account every month). Even after four years, I still prefer to use cash (I think I atually spend less this way). Hope your sort it out, x

[themas]

1. Who has told you you can only have one bank account? Was it the Official Receiver, or your bank? If it was the bank I think you can safely ignore it - just open a savings account with another bank and have your housing benefit paid into that, but it may be worth checking with the Official Receiver that they are happy with this. Notes: a) By savings account I do not mean a basic bank account, but the old style savings book account - often operated with a passbook. There are still such accounts into which money can be paid by BACS, so the local authority could pay your housing benefit into it. b) The Official Receiver will be interested from the point of view of making sure you are not accumulating savings, so the account should only be used for the benefit and therefore virtually emptied every time you pay the rent.

2. If the Official Receiver told you there is this limitation I don't understand it. There is nothing I have seen in their Technical Manual which imposes such a restriction.

3. I would not take the money out and keep it in cash. There is always some risk of burglary etc. So - if you really can't have a separate account - leave it in the one you have, but of course you will just have to be disciplined and make sure you don't spend it on other things before the rent is due.

4. Of course, you could always pay the rent early - i.e. as soon as the money goes into the account.

[chrissa1]

Thanks for all your answers.

Sherrardk, I know what you mean. It gets so easy to just hand your debit card over the counter.

Themas, I was told by my bank, (Cooperative) that I wasn't allowed to have two accounts. I can't really pay my rent early as I get the HB in two tranches and then I have to add to it from my pension.
I think I'll try to be really disciplined and see how it goes. I might speak to the Receiver. Do you think this will help?

[sherrardk]

Could you pay your rent fortnightly?

[chrissa1]

I think that would get me muddled up sherr.

[themas]

I think the bank were almost certainly saying you couldn't have 2 accounts (basic bank accounts) with them.

If you wanted another basic bank account it would have to be with another bank, & Barclays are the only one other than Co-op which has a policy of doing them for bankrupts. But if you owe them any money then you can't use them anyway. I'm not sure whether the Receiver would be concerned if you had 2 such accounts.

I can't see any problem with you having a savings account in the way I described - no credit checks are done when they are opened as the account holder is not able to obtain credit so there is no possibility of them becoming overdrawn.

But do ring the Receiver's office & check.

[chrissa1]

Thanks themas. I don't owe any money to Barclays so I may do as you suggest. Cheers.

[DTCwordfan]

hey Chrissa, never forget you are in our thoughts..........

[chrissa1]

Thanks DT. You're very kind.