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Question for a friend re her ex husband's IVA
I have limited knowledge about IVAs and thought this would be the best place to ask this question.
I have only spoken briefly to my friend about this so only have limited information at the moment, I hope someone can give me an answer though.
My friend was married years ago (and is since divorced) they had at the time 2 joint accounts with Lloyds bank, and when they divorced she wrote to them and requested her name be taken off the accounts. She heard nothing back so assumed all was ok. A few years later she had a letter from them at her new address saying that the 2 accounts were in total approx 7k overdrawn. She spoke to them saying she had taken her name off a few years previously, however it seems that as one of the accounts was £38 OD they hadn't processed the request - but also hadn't informed her of this, so as far as she knew she'd been taken off the account.
It seems her ex husband has been through/or is currently on an IVA. Now I would have thought that all of his debts would have been included in that? (The reason I assume this is I went through bankruptcy almost 5 years ago, and one of the debts was an overdraft on a joint acc with my ex, and that was taken into the bankcruptcy and they never chased him for any of it) So it made me wonder, wouldn't this joint acc OD have been taken into his IVA, so why would my friend find herself having to pay it back on her own? It has now been sold to a debt agency and is no longer with LLoyds.
Thank you in advance for any help you may be able to give me!
I have only spoken briefly to my friend about this so only have limited information at the moment, I hope someone can give me an answer though.
My friend was married years ago (and is since divorced) they had at the time 2 joint accounts with Lloyds bank, and when they divorced she wrote to them and requested her name be taken off the accounts. She heard nothing back so assumed all was ok. A few years later she had a letter from them at her new address saying that the 2 accounts were in total approx 7k overdrawn. She spoke to them saying she had taken her name off a few years previously, however it seems that as one of the accounts was £38 OD they hadn't processed the request - but also hadn't informed her of this, so as far as she knew she'd been taken off the account.
It seems her ex husband has been through/or is currently on an IVA. Now I would have thought that all of his debts would have been included in that? (The reason I assume this is I went through bankruptcy almost 5 years ago, and one of the debts was an overdraft on a joint acc with my ex, and that was taken into the bankcruptcy and they never chased him for any of it) So it made me wonder, wouldn't this joint acc OD have been taken into his IVA, so why would my friend find herself having to pay it back on her own? It has now been sold to a debt agency and is no longer with LLoyds.
Thank you in advance for any help you may be able to give me!
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Comments
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I'm afraid the bank is probably within their rights: Where a joint account exists, and one of those on the account enters an IVA, the bank have the right to pursue the other debtors.
Banks won't convert a joint account to a sole account if it is overdrawn.
Sorry, I am sure that is not what you wanted to hear, and you friend will probably now have to clear the debt.
I had a similar situation: Joint account with the Wife. Took her name off it before entering my IVA, so that we did not have to do an 'interlocking' arrangement.0 -
Thanks for your reply.
Does that mean that the bank are getting their money back twice effectively? Once through her ex and his IVA and once through her? Having said that, it is now with DCA, so I guess they must have sold the debt on regardless of being paid by him?0 -
I'm not sure how to advise you on this one - hopefully someone with a little experience in this area might be able to help.
...Have the bank sold the debt? ...or have they just referred the matter to a DCA?
If it's the latter (and I assume that because, at this stage, only one of the debtors is in an IVA), then your friend must be careful that the DCA's charges don't start mounting up.
Debts usually get sold on once the creditor has been screwed by an IVA or whatever, they then wash their hands of the matter by selling to some company like 'Max Recovery' at a heavily reduced rate. The buyer gambles on the release of additional dividend over the IVA term.
Bottom line at the moment: your friend is almost certainly liable for this debt and any additional charges. She must act now, or the bank could eventually resort to something nasty like a CCJ ultimately I guess.
Another thought: Could she seek advice from her divorce solicitor? There might be something in the divorce settlement that she can use to her advantage over the ex.
Good luck.0
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