benefits into wifes account

gratton20

Hi, I am very new to this board but been reading and gained enough confidence to go ahead with putting in my BR forms, have had advice from national debtline and think I have it all clear but one thing worries me a lot. I have read all the threads about bank accounts for undischarged BR and since I have a Natwest step account, a cashcard account it seems from the posts here that they will close it when I go BR. I dont really want to loose dd facilities as the discount on electric is quite big and we live in a small village with no shop, difficult to get to town on public transport.

My possible solution, and I would be grateful if you could tell me if this is allowed, or practical. If my wife opens a basic bank account in her name only (she will not be going BR) can i have my benefits paid into it, (my only income) and would the OR have to know about it, or if I told him would it make a difference?

Any advice welcome

tigerfeet2006

Yes you will be able to have your benefits payed in to your wife's account as far as I am aware, I am sure some one will correct me if I am wrong.

But if you look at the sticky about bank accounts at the top of the board you will find the 3 accounts that B/R's can open and they all allow DD's so you won't have a problem.

fermi

Hi gratton20.

As tigerfeet says, what you propose would be quite acceptable, and I know of a least one person who has gone BR and now has income paid into their spouses account.

Natwest are a pain in the ***, and you are correct that it is their standard policy to close all accounts of undischarged bankrupts. It will almost certainly be closed either immediately or eventually, so I would not use it at all post BR even if the OR says that they have no interest in it.

If you wish to have your own account after BR with access to DD's, standing orders and other basic facilities (no cheque book, OD, CC though) you can look at the three accounts from Nationwide, Co-op and Barclays listed in the sticky here:

http://forums.moneysavingexpert.com/showthread.html?t=474254

At present these are available to a current bankrupt, but are the only normal basic accounts known at present.

Even with these it is advisable to open it after you have gone BR since that will eliminate any possibility of the account being temporarily frozen if their is a miscommunication between the bank and OR.

In addition there is the 'Post Office Card-Account' that only benefits can be paid into. The only facility on this account is to withdraw money using the card, but it is never affected/frozen in BR since it's only purpose is for benefits.

In your circumstances I would suggest that before BR you arrange to get your income paid into either your spouses account or a 'Post Office Card-Account'.
Once you have gone BR you can then arrange to open one of the three accounts in the sticky, arrange for you income to be paid there and set up any DD's for that account. That means that it could be a little inconvenient if there is a gap in DD payments due to the switch, but it will save lots of problems in the long run.

Hope that helps.

gratton20

Thanks for all the advice, you have explained things so clearly. I have been into our branch of Natwest where we presently hold a joint account (step account - basic bank account) and got the form to delete my name from the account and make it solely my wifes account. The lady in the bank confirmed it could be done "in a couple of days" once the simple form is returned (will do that tomorrow).

I assume, and here I am probably being silly, but I belive I can carry on getting my benefits paid into the account just as now, allow the same 3 dd's (electric, gas water) to continue same as before and that natwest cannot after my BR close my wifes acccount as it is nothing to do with me legally ... or have I boobed somewhere.

Should I tell the benefits people and the people we pay by dd that the name of the account has changed, (the sort code and acc number stay the same apparently)

Thanks for everyones support, I really am beginning to feel a big weight is starting to lift off my shoulders at last.

Conor_3

gratton20 wrote: »

My possible solution, and I would be grateful if you could tell me if this is allowed, or practical. If my wife opens a basic bank account in her name only (she will not be going BR) can i have my benefits paid into it, (my only income) and would the OR have to know about it, or if I told him would it make a difference?

Any advice welcome

This is exaclty what my FIL has done with his benefits. Perfectly OK, above board and no problem with the OR. All you need to do is to notify the relevent agencies of the new account numbers. Only problem he had was the first payment from one benefit came as a cheque in his name but he phoned them, sent it back and they re-issued it in his wifes name.