Separate Acct or Separate Bank

[anonymuse]

I am finally getting my payment for my personal injury. In my state, this is exempt from a bk so I need to make sure I do not co-mingle the money. Most of it will be spent right away--the health insurance company has a lien on 40% of it and about another 15-20% will go to existing medical-related bills. I have someone breathing down my back and threatening to garnish my wages, so I told them they could get their amount--about 10% (that is not a dischargeable debt in a bk) once I get the check. I need about 15% of the money to file my bk. So that accounts for 80-85% of the money. The remaining I want to buy some necessities (eye glasses, dental cleaning, prescriptions, and one "luxury" dog door.) I'm hoping to save some money so that I can offer it if my home assesement is too close.

I need to make sure I don't co-mingle the money. So I see one of 3 options to pay the bills out of that money:

1) Use the Credit Union account I stopped using. Why? The account is ready, I have checks and can start paying everyone immediately. I have my HELOC there, but I owe about $400 on my overdraft line of credit.

2) Get a second account at WAMU--they set-up accounts very quickly but I can still keep this money separate and deal with the same bank location.

3) Get a new account at a new bank. My concern is not getting checks right away, but I know I could do money orders.

Any thoughts on which is best or does it matter?

[Granny]

Just my two cents worth

Generally, when you deposit a large check, the bank will put a hold on the funds for up to 10 days and only give you access to roughly $100.00 of it right away. That is enough time for the new checks to arrive. And you could always use the temporary checks the bank give you for a new account and you can get more if you need them before your printed checks arrive.

This would be especially true with a new account at a bank where you have not done business in the past.

Good luck and congrats on getting the settlement.

[anonymuse]

Good point--forgot all about that hold. So will definitely go with either my existing account or add 2nd account at WAMU.