bank account arrestment

feegee_3

hi im new here so please forgive if this is in the wrong place or been covered before..... my problem is this.... due to being on benefits for 6 months now i have today sent my application for a low income bancrupcy due to having approx £10,000 of debt (bank loan, credit cards etc.) and no means of paying this.... i have at present £700 sitting in my bank account which has been arrested by the same lovely bank as most of my debt is with them!!! this money is mostly made up of child benefit and maintainance payments made for my son... i know it is not a huge sum of money but i have been told that once my bankrupcy takes effect i will have lost this money... i really could use it for essentials... my son needs new shoes etc... is there any way i can access this money? i went into the bank yesterday but got no-where... i was given a number to phone but again got no-where!!!!

Also was wondering if anyone had heard of payment protection being cancelled due to a change in my situation ie becoming unemployed???? i thought that was what i was paying for protection... incase i was unable to make payments????

thanks in advance
fiona x

also forgot to add i live in scotland... dont know if that makes a difference!

vaporate

This kind of topic has been covered many times before.

I know it is too late now but you should of opened a new account for any beenfits separate from banks that you have debt with.

I would redirect your benefit sinto a new basic bank account NOW! If you have not yet done so already.

MyLastFiver

One of the knowledgeable folks we be along soon to give precise info but I believe that the bank cannot seize benefit payments. Arm yourself with the precise facts then demand an emergency appointment with the branch manager. Go in with the nipper. Lay it on thick and don't leave until they release the money. This worked for someone else on these boards recently who was in a similar position.

DarkConvict

New account is definably where you need to start, co-op cashminder or barclays cashcard. These are available to undischarged bankrupts.

I can't find the info on benifits, but these are indeed not meant to be taken by the bank as they are paid as care costs, not a income to spend (including paying debts)

never-in-doubt

See here: http://forums.moneysavingexpert.com/showthread.html?t=269424

or here: BSB Lawyers - Social Security Benefits and a Bank's Right of Setoff

or here: Can a creditor take money directly out of my bank account if I owe ...

or here: Banking Benefits

or Here: Protect your Pocket: Budgeting, Debt Problems, Redundancy, Setting ...

or here: Setting Off Rules: DON'T bank where you've got debts...