Debt relief order and bank accounts

UK Help
1

Hi so im getting advice from national debt helpline. And I think I am going to be going doen the debt relief order route.

I have a personal account in my name only with an overdraft which will be named in dro

And a flex account in my name only which will be named in dro. Both accounts together owing around £1000

I also have a joint account with my husband for all incoming and outgoings.

Even though I owe nothing related to the joint account. Can my joint account be affected. All income is paid into and all bills come out of it.

Can monzo take money from the joint account to pay what is owed on personal account. And can they close down the joint account because of my personal account being named in dro.

Thanks

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Banks can use the right of set off when they please.

If you have debt with a bank, it’s best to open an account where you don’t have any ties (ie avoiding Lloyds, Halifax and bank of Scotland if you have any debt with them).

Your guidance should’ve explained that to you.

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They did explain just the debt isn’t linked to my joint account with my husband it is only liked to my personal account.

I just didnt know if they could do it as my husband is named on the jount too

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4

Your money is joint ownership so if it’s in your name they can use it to the debt, even with another attached.

You need a new joint account not linked to any debt you have.

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5

I would absolutely recommend having a stand alone bank account where you owe no debts (including other banks within that family of banks) and use that one. If you require a joint account then set one up with them.

There’s nothing to say you have to do so, but if you owe Monzo as part of the debts then you don’t want Monzo as your main bank account. Fresh start, so to speak.

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