Bankrupt husband.

[Moneymatters18]

Sorry I did post on the money topic but I haven't had any response at all so i have posted here for traffic. I'm extremely anxious and tearful at the moment also 6 months pregnant so i really don't need harsh words or nasty comments I am already as ashamed as I can be about this I both me and dh have been in floods of tears our money situation spiralled only a couple of months ago after an accident which has left dh unable to work fully and the expense of him being in hospital. We also tried to get help but we couldn't get documents on time from his work place so they kept closing our claims and our rent costs spiralled out of control and we had to keep borrowing to keep our heads above water. I've copied the post exactly how I wrote it first. I really appricate anyone who reads this and can offer advice. I'm a regular poster but I've name changed.

Hi everyone hoping this is a safe place to talk I'm really not looking for any judgement or nasty comments just need people to talk to and ask for advice.

My husband recently filed for bankruptcy we paid the fee in full and our joint bank account was frozen with Santander... fair enough that's the usual process. All our money goes into this account and all our bills and direct debits come out of this account.

The bank account got frozen with £1073 in there a combination of husbands wages and some of the benefits we are entitled to. (Low income family) the bank account has been unfrozen but the bank has decided husband is to be removed from the account which is fine. I haven't touched a penny of the money in the account since it was frozen in September. All of a sudden the balance dropped by £500 and when I called the bank the reference for the missing 500 was simply my husband name.

The bank think they might of sent my husband a cheque for the 500 but they aren't sure. What else could they of took the money for we don't owe any money at all to Santander and never have it is a new bank account.

The withdrawal was made on 11th Oct but it wasn't to another account. Has anyone had any experience of this?

I guess what I'm asking is will we see that 500 again? We do need it to pay our rent this month as I now don't have enough money in the account to cover our rent and essential living costs.

The money wasn't part of the fee as that was paid in full by my dad off his card at the time the application was made.

The bank has also had a letter of no interest fron the official receiver and the block on the account has been removed.

We had some debt before hand but it wasn't an unreasonable amount it was from furnishing our home as when we first had dd and moved in together we had nothing.

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It's impossible for the bank to not know where a cheque payment went.

I think you suspect your husband's had that money, or knows what's happened to it You understandably don't want to believe that, so you're here asking basic questions that a personal visit to the bank would have answered

If that desperate for the money (and not sidelined by yourr suspicions/husband going along with not knowing what's happened to money) you'd have been down to the bank like a shot.

But I hope for your sake it is some sort of error by the bank, and you get it sorted out ASAP. Good luck.

I remember my cousin tried to tell this lie when she stole 2k from me which I had in her bank. She claimed the bank "lost" the money when it just got reverse back into her account because she withdrew money and she spent it

Banks dont just lose money op.

It all sounds terribly strange. Ring the bank and say money has been taken from your account you suspect fraud and they will investigate. I would try and get some financial advice to be honest it seems very unusual to have to go bankrupt over a few months of financial problems did you take advise about this about repayment plans , consoldating the debt ? Im guessing if your husband earns 900 a month you should be getting tax credits aswell and possibly housing benifit ? are you getting everything you are entitled too? does your husband work full time ? is there any option for him to increase hours or any scope for promotion at all ?

The bank hasn’t lost the money. Your husband knows exactly where it is

You need to go into the bank and demand to know what's going on. Otherwise you'll be contacting a solicitor. Banks don't lose money. It's either fraud or your husband's not telling you something and its going to get worse.

If the bank has given you a final answer on the issue, and you aren't happy with the result. You can contact the financial ombudsman service. They can get involved and investigate the complaint, better than a solicitor.

It may be worth reminding your husband that if he is squrelling money away (regardless of why) and the OR gets wind of it he could find himself in even more trouble. He could have the term of the BR extended and more interest could be taken into his finances and so on.

Best for him that he comes clean otherwise the bank will need to do a full investigation which could lead to the Or being notified.

Who has been in touch with the bank about this? You/your husband or both of you?

How long is it since his accident and were you in debt before then?

What do you mean by 'our rent costs spiralled out of control' and how much debt are you and your DH in? Bankruptcy due to a short term loss of income is a very drastic step - has he had independent advice on whether this is the best way forward?

If you are renting, the debts per person are under £20k (I think) and you have no other assets or spare income, a Debt Relief Order might be the best step. But you need the full picture before making any decisions as you need to set a workable budget.

As others have said, the best place for advice on this is Stepchange or Payplan, but also Moneysavingexpert.

You can get both your credit files, which will show what debts you have (except rent/council tax if applicable - don't forget to include these as well)

www.moneysavingexpert.com/creditclub

And the debt advice section is here:

www.moneysavingexpert.com/loans/debt-help-plan/

Forums to chat with people going through bankruptcy and DROs are here.

forums.moneysavingexpert.com/forumdisplay.php?f=159

forums.moneysavingexpert.com/forumdisplay.php?f=136

If you or him do go for bankruptcy, standard advice is to empty your bank account before the day - it is fine to keep a few hundred pounds in cash for living expenses so you can pay rent, buy food and pay for essential travel etc while your accounts are frozen and the payments order etc are sorted out.

Sorry OP, but the most simple explanation is usually the right one - I think your DH has most likely withdrawn this money, possibly in cash . You need to ask the bank.

I deal with bankruptcies as an advisor in Scotland, however processes are different in England so can only give you my thoughts.
Although the OR has discharged liability for your bank account, they would consider half the money in the joint bank account your DH's. So it is likely that it has gone to the OR as it would be considered an asset.
Being done on 11th October , the cheque could be sitting in someone's in tray in the OR's office and not dealt with.
It is possible, but unlikely it has gone to your DH. However, as I am not an expert, I would check with the OR.
Money saving expert is good for advice, but no other debt solution is relevant now as BO has been signed and OR is involved.

When I was removed from a Santander joint account with ex they didn't send me half the money, they didn't even mention anything about the money in the account. This was about a year ago. I didn't think it can be that.

A cheque sitting in someone's in tray would not usually show as a debit until it is cashed, unless it's a bankers draft.

If you haven't already, open your own account and ask HMRC to pay child benefit into there from now on. You can make the request online, I did it myself recently.

OP, you had a very sensible answer from saturated above which I agree is likely to be the answer. Go to a branch today with ID and ask them to look into it. If they’ve sent a cheque to your husband with half the balance you need to find out if you can have it paid back into the account. Otherwise if he has no a/c I guess cash converters might take it but they charge a fee so you may lose a bit which seems harsh at the mo.

As he’s bankrupt he won’t have any credit cards and I’m extremely doubtful the bank would honour cheques off him having demanded he was removed from the a/c, so please don’t listen to the people saying it must be him, I don’t think they know much about bankruptcy and enjoy stirring the pot.

It sounds like you’re having a really tough time but you are dealing with it the best way, making it all official and you WILL get through this. If you’re on benefits at the moment it’s unlikely they’ll be able to get much if anything off you.

If the bank aren’t helpful go to CAB. There are also often local voluntary services through churches which can help you with advice at times like this. If you’re desperate for food, food banks at churches often require less info to give stuff out, (used to volunteer at one) so googling to see if there are local services like that is worthwhile. They may also be able to help you with baby stuff if you need any.

Good luck, scary thing to happen at 6 months pregnant, but you will get through it.

First port of call has to be the bank branch. Pop in, make a sit down appointment and take your ID with you. They cannot just withdraw money from your account unless it was for overdraft charges or interest on an overdraft (but that would have to be one hell of an overdraft and it sounds like you've held a credit balance, so makes no sense).
Just see if that meeting sheds light first off OP. No point saying what to do next until you've heard what they've said. As a previous poster said, it's not the Wild West and cash shouldn't just evaporate!

vangogh, being removed because of bankruptcy is probably a bit different because his assets are under court order now.

It could well have gone to the official receiver and she really should be being more helpful. You need to speak to CAB or get some decent advice.

Second what others have said - when they took his name off the account he was probably able to take his share out. He is probably scared of your reaction and scared of being without money.

Are you Bankrupt too? If you are on a low income and and debts are not really big, is bankruptsy the right choice? have you been advised properly.

You should take some advice seperately from your husband as although he may have the best intentions - he may make the wrong choices through fear and fear of your relationship breaking down. He may also not tell you the full truth of his situation because he doesn't want to worry you.

You should set yourself up a new bank account and have any benefits put into that account, any other money your receive seperately from your husbands wages. keep it separate so that you know you have that there securely. Make sure you are getting everything you are entitled to.

I would bet that your Husband knows more than he’s telling you. Report it as a fraudulent transaction with the bank.

I imagine if he is bankrupt it will be a bankers draft to official receiver or similar. It won’t be like a cheque from a normal account where it has to clear. They’re certainly not going to do that when someone is bankrupt and can spend the funds!

Might also be worth taking on extra work too. I got a job when 5 months pregnant and it worked out fine. That might help with the finances.

Also if the accident your husband had was someone else's fault do look at if there is any possibility of compensation.

I hope you can sort it all out.

His suggestiong he pays all future wages into your bank account because he is bankrupt does not sound lawful to me as surely the receiver in bankruptcy gets all his money except a smallish amount to live on, in order to pay back creditors?. Might be worth taking some advice on that issue. Don't let him drag you into anything illegal (and never rely on men for money again it often does not pay off - better that women earn their own money)

The bank can see exactly where that money has gone. They can see if it's a cheque (doesn't sound like it), or a bankers draft (what they would use to send out the balance to your husband), I doubt it's cash unless he withdrew it in the branch and asked for the reference of his name specifically which seems unlikely, doesn't seem like a CHAPS payment.

Most likely are bankers draft from branch which they can absolutely give more details on as that comes from a physical book or an internet banking transaction from your husband. Did he have access to internet or telephone banking?

Go in to your home branch and if need to speak to the manager or supervisor. Every transaction is logged and who it went to, which teller processed it if a branch transaction so they can see a lot more than they are saying.