DRO and bank account

TroubledTina

Hi,

I'm still plodding on and slowly getting everything sorted to apply for a dro. Just one question I need answering please.

I have two bank accounts a Lloyd's classic account with an overdraft facility which I dont use
and a Halifax account, no money is owed to these companies. The Lloyds account is used for benefit payments and bills, gas, water rates etc. The Halifax account is used to pay my 2 credit cards, I have no direct debits set up, when the credit cards are due I put the money in the bank then pay them online.

I would prefer to change my bank account, clean break and all that, I was thinking of a nationwide flexi basic account. What I would like to know is would it be ok to use the bank switching service? I would much prefer to do that instead of ringing each company up myself.

Thanks.

Forgot to mention all my household bills are up to date, my debts are all on credit cards.

fatbelly

I don't see a problem with this. It may be that Nationwide will want you to go for one of their other accounts. Let us know how you get on.

TroubledTina

Thanks fatbelly and will do.

TroubledTina

Well that's a no no, on the website it states you can only open a basic account if you are already bankrupt. I'm sure the are other accounts I could try.

Sorry for sounding a bit thick when it says your account may be frozen what exactly does that mean, does it mean that no direct debits would be processed, no wages, benefits would go in your account.

I really am thinking about bankruptcy it just seems more 'final' than a dro, especially in my situation where most of my debts are through gambling, I know it's a lot more expensive but seems to give more peace of mind.

I really dont know what to do.

fatbelly

Regarding your debts, if you qualify for a DRO go for that. It's only £90 and is less intrusive that full bankruptcy. It's not as if you are a complex case if all your debt is on credit cards.

Very few fail, but if it did, then you still have bankruptcy as an option.

Regarding your bank account, I thought Nationwide might refuse to give you a basic account but they will probably give you a FlexDirect or FlexAccount. If they refuse, you'll just have to soldier on with the Halifax and Lloyds accounts. The DRO won't have any effect.

Where did you read about bank accounts being frozen in a DRO?

TroubledTina

Thanks for the reply fatbelly.

I've read that much about dros and bankruptcy that I am probably getting my wires crossed about bank accounts being frozen in a dro, so dont they generally get frozen if you are in no debt with that bank?

I'm not bothered about the Halifax account. I'm more worried about the Lloyd's account because I know Lloyd's took over mbna and that is one of my debts.

I think I will try one of the accounts you mentioned above and switch everything over from Lloyd's. I dont think I will have any trouble opening a new account, on paper my credit rating is perfect, if only they knew, robbing Peter to pay Paul etc, well enough is enough, it's the first thing I think of when I wake up and the last thing I think of when I go to bed then it's on my mind all day

Deep down i know you are right about a dro being the best option, and as you say if it all goes wrong gets refused or revoked there is always bankruptcy.

One again many thanks fatbelly.