Can't access funds

exploringbeaches

Is there any way to access a fixed term savings account due to severe debt? 

My friend has more than enough money to pay off all her debts, but despite many emails and calls and meetings the bank will not consider releasing her funds to her, to the point she is now looking to apply as a last resort for bankruptcy as the only option (or worse still, ending it all in another way). Friends and family have helped as much as they can . 

Whilst I understand bank accounts have T&C, is there no way for her to access her funds? The idea that someone might commit suicide because they can't access their own money is heartbreaking to me. 

Grumpelstiltskin

How much are talking about and how long does the fixed term have to run?

Sonic101

If your friend declares bankruptcy, all her assets will be taken, the bank will have release the savings to the official receiver.

If she has not done so already, I would suggest your friend contacts an organisation such as National Debtline or StepChange - they will be able to help and advise. if nothing else, I’m sure a temporary repayment plan (maybe just paying token amounts to her creditors) could be put in place until her funds can be released? Bankruptcy would be crazy if she has the means to pay off her debts.

exploringbeaches

Grumpelstiltskin said:

How much are talking about and how long does the fixed term have to run?

Fixed term lasts another 15 months. Talking about £25k debts. But savings are around £70k! Bank said they'd release the money if she declared bankruptcy... Bit late by then! 

exploringbeaches

Sonic101 said:

If your friend declares bankruptcy, all her assets will be taken, the bank will have release the savings to the official receiver.

If she has not done so already, I would suggest your friend contacts an organisation such as National Debtline or StepChange - they will be able to help and advise. if nothing else, I’m sure a temporary repayment plan (maybe just paying token amounts to her creditors) could be put in place until her funds can be released? Bankruptcy would be crazy if she has the means to pay off her debts.

Yes she's been in touch with a few now and waiting to hear back from them. Apparently it didn't look promising. Fingers crossed for something workable.

Grumpelstiltskin

Stepchange or National Debtline are the way to go. Please make sure she speaks to the correct people as there are similar names out there who are not charities.
What is her financial situation at the moment?
Is she on her own or does she have a partner?

exploringbeaches

Grumpelstiltskin said:

Stepchange or National Debtline are the way to go. Please make sure she speaks to the correct people as there are similar names out there who are not charities.
What is her financial situation at the moment?
Is she on her own or does she have a partner?

Whoops, logged into my partners laptop and replied with the wrong username! Yes she's definitely mentioned those two companies by name. She is married and owns a home (with mortgage)

Minkym00

Is a creditor petitioning for her bankruptcy? If not, it seems prudent to wait out the 15 months until she can access her cash. The OR will use their discretion when claiming a fixed term savings balance in any case, as the penalties to claim the money early may be onerous. If there would be a material loss to the bankruptcy estate then they would just wait out the 15 months anyway.

If she has equity in her property it'll go in the bankruptcy if her husband can't afford to buy out her interest.

From what you've said so far, sitting tight looks like the right option to me.    

fatbelly

It sounds obvious but has she checked the t&cs? One fixed term savings account I looked at had this:

• After the Fixed Term Start Date You can close your account before the Maturity Date by giving 35 days’ written notice to your branch. To give this notice, you can either write to your branch, or hand it in in person to your local branch; and º We’ll apply an Early Closure Charge as set out in the Information Sheet and will deduct it from your account. This will not apply if the account is closed in the event of your death or non-voluntary redundancy

sourcrates

I can`t see what the problem is, this is all crazy talk, just keep the creditors happy with token payments for a year or two.

When the money matures, use it as you wish, there is no need for any intervention or talk of ending a life, its way over the top thinking.

Get her to calm down, there is no rush here, debt management will suffice for now if she can`t make the contracted repayments, get her to look at this with a clear head, debt collection is a very long process, she could stop paying everything now, and in two years time still be getting the standard debt collection letters.

exploringbeaches

sourcrates said:

I can`t see what the problem is, this is all crazy talk, just keep the creditors happy with token payments for a year or two.

When the money matures, use it as you wish, there is no need for any intervention or talk of ending a life, its way over the top thinking.

Get her to calm down, there is no rush here, debt management will suffice for now if she can`t make the contracted repayments, get her to look at this with a clear head, debt collection is a very long process, she could stop paying everything now, and in two years time still be getting the standard debt collection letters.

I hope so I.'ve never been in debt so find it difficult to advise her other than to speak to the professionals!