bank arrestment

paisley123

I recently inherited some money,the money had just been in my account for less than a week.It was a term of the will that the money had to be used as a house deposit,the lady who left me the money knew id struggled all my life and wanted to make sure i was happy and settled.2 weeks before i got the money i recieved a huge unpaid council tax bill for over 13k from years ago,a lot of that was interest.I hadnt got round to making a payment plan with them,something i will always regret and at the weekend i discovered scott and co had arrested almost 14k of my money so now i dont have enough for a house,im devasted.Is the money gone for good or can it be released back in my account if i arrange a decent payment plan? thanks in advance

sourcrates

paisley123 wrote: »

I recently inherited some money,the money had just been in my account for less than a week.It was a term of the will that the money had to be used as a house deposit,the lady who left me the money knew id struggled all my life and wanted to make sure i was happy and settled.2 weeks before i got the money i recieved a huge unpaid council tax bill for over 13k from years ago,a lot of that was interest.I hadnt got round to making a payment plan with them,something i will always regret and at the weekend i discovered scott and co had arrested almost 14k of my money so now i dont have enough for a house,im devasted.Is the money gone for good or can it be released back in my account if i arrange a decent payment plan? thanks in advance

Hi,


A creditor with the correct authority can stop you taking money out of your accounts by freezing them. This is called arrestment. There are strict rules about how this can be done and there is a minimum amount protected for you still to use in your account (£460.06 from 6 April 2013). If you have several bank accounts with the same bank the protected amount of £460.06 applies to all the accounts together. If you have several accounts but they are all in different banks the protected amount of £460.06 applies to each account separately. You might need to check carefully who you have your accounts with as some banks with separate names are in the same banking group. This could mean that the separate accounts may be treated as being with the same bank and so the protected amount will be applied only once.
You may be able to object to a creditor forcing you to pay in this way because:

• you can argue that you will suffer undue hardship to yourself or other family members such as the more vulnerable members of the family like older people or children
• you have been allowed time to pay by a court
• the creditor did not use the correct procedures.

If you have been told that your accounts are to be frozen you must get help to sort out what options you have. Some of the funds going in to your account may be exempt from being frozen, for example, your child benefit. However, it is sometimes difficult to get the bank to separate this out for you. You should get help from an experienced adviser to negotiate for you. You may also need advice if you have joint accounts. The creditor cannot just be given the money that is owed straight away. You have to agree to it being paid out to the creditor but, if you don’t agree, after 3 months, the money will be paid out automatically.

poppasmurf_bewdley

I think you need to speak to a solicitor who specialises in financial matters, but from reading your post, I would say that once it's gone, it's gone.

Penny_Bridge

That was bad timing, no wonder you're devastated. I would definitely try to get advice. One thing I'm wondering is; would you be able to get a mortgage with this debt on your file? I'm thinking not.

If it turns out you've lost the money try to take the positive out of it. You're debt free and can hopefully get back on your feet.

chanz4

I cant imagine this been the first you have heard op, if you need the best help we need the full info

paisley123

I havent heard about it for years,i stay in a different part of the country now which is probably why.My ex husband is taking out the mortgage so its a bit of stability for my kids.

Vermillion

Hummm

This reminds me of hearing about a similar situation some handful of years ago whereby someone had received an inheritance. The solicitor who was dealing with the estate ran a check through the credit reference agencies (IVA's and bankruptcies) and it was shown there was an amount owed to the local council for unpaid tax of around £2800.00. The money was deducted automatically before she received the inheritance and it was listed in the final accounts as to where that share had gone!

Don't be at all surprised if this has not happened!!

paisley123

That sounds like what couldve happened,im so scared i wont get at least some back and offer to pay up the rest otherwise i wont have enough to put down on a house and pay for fees.

greensalad

With that sort of debt it's doubtful you would have been able to get a mortgage anyway (especially if you have poor money management elsewhere). Now that it's been paid, maybe you can start saving for a deposit now that you no longer have the debt hanging over you.

paisley123

The term of the will is it has to all be used for a deposit and fees etc buying the house,i have a letter from solicitors i have to sign to say that it will,not sure what to do about that

chanz4

think the only person to over rule, will be a court a council wont go back not if you have made no attempt before