Natwest Joint Account - Help!

charliewalsh · 10 February 2009 at 10:50PM

My OH and I have a Natwest Joint Account and we have 4000 overdraft on the account which we spent every month - wages goes in, repaid overdraft and we spent it again on expenses, debt payment, mortgage, etc,etc - we are always using the overdraft to the limit - some weeks, we do not have money to buy food.

I will be petitioning for my BR - what will happen to the 4000 overdraft in the bank account? I have applied for Co-op Cashminder today after reading the advices in this forum. I asked Natwest if our current a/c can be changed to sole a/c for my OH - they said yes but the overdraft must be repaid first. Otherwise, that a/c will stay as joint account.

Will the joint account be frozen after i go BR?

Should we start to open sole account so that we can transferred all income and expenses separately and leave the Natwest a/c with no activities?

Can I put 2000 overdraft in the creditor list on my form - i.e 50% of my share of the overdraft?

I had a feeling that Natwest will not want me as a customer after I go BR!

skylight · 10 February 2009 at 11:04PM

Your liabilty to the debt will be included in your BR. Your OH will then be soley liable for the debt and will be chased by the bank to pay it all back. The bank will freeze the account so it cannot be used.

I would suggest that you set up some basic accounts ASAP - the Co-Op are very BR friendly with their Cashminder.

charliewalsh · 10 February 2009 at 11:44PM

In this case can I include the full 4000 pounds overdraft in my BR? Although OH is not going BR, he will not be able to pay the full 2000 pound in a lump sum to Natwest. OH will need to open other account so that Natwest cannot get their hands on his wages when it goes into the account to repay the overdraft? Perhaps with other bank....

sieve · 11 February 2009 at 12:23AM

Hi Charlie,

If the account is in joint names and overdrawn, there's sadly not a lot you can do to protect your OH since the moment you go BR, your OH will become liable for the whole amount (not just half of it) and as skylight says, the account will be frozen. So anything that is paid into the account won't be accessible to either of you.

This will only be an option if your OH is solvent - don't even attempt it if he is not as it will just get you both in deeper - but if your OH could find another bank account for him with a 4k overdraft, or a 4k loan, or whatever, he could use that to pay off the joint account's overdraft once you go BR which will at least mean his wages are accessible as long as they are paid into the new, non-natwest account.

Hope this helps - it's not an ideal situation, but it should at least buy your OH some time. He will become totally liable for the debt though - the only way for him to escape the whole amount would be if he went BR as well. You wouldn't be able to pay him under the terms of your BR as technically he would be a creditor and they may pick you up on that for preferential treatment.

Cheers

S

skylight · 11 February 2009 at 4:05PM

Hi Charlie - your OH will be liable for the full £4k. He will have to pay this back - there is no "share" when you are both fully liable for an amount.

Its your liability that is included in your BR - so you will never be chased for the money by anyone as you are not liable to pay it.

But your OH needs to open another account ASAP for his wages to be paid into. Does he have a friend/relative he trusts that he could have the money paid into in the meantime?

Then after your BR, your OH will need to come to an arrangement with the bank account about paying it back and he will need to come to an arrangement ASAP to prevent additional charges being added for going over limit/non-payment etc.

charliewalsh · 11 February 2009 at 9:51PM

Thanks Skylight and Sieve, I will get my OH to open another account ASAP and transfer everything to the new account. I do not want my OH to go BR for 4000 overdraft - that's all he owes, no other debt. Thanks for you help and advise. Much appreciated.

Natwest Joint Account - Help!

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