Paying back joint overdraft

custard_cream_3

Does anyone have any experience of banks and their "patience" in having a joint overdraft paid back after one of the account holders goes bankrupt?

My wife and I have a £5000 overdraft limit and it's normally around there. Once I go BR, any idea how HSBC may treat my wife?

fiveyearplan

If she phones them and explains the situation and offers a genuine payment plan I'm sure they would accept it just as they would had you phoned now to offer the same. I don't think they will treat her any differently or certainly not feel sorry for her etc.

I'm BR and my husband isn't. As I see it I'm still in debt to the same amount he is because our household money has to go towards paying it and I'm the main breadwinner. Anyway I wouldn't see him struggle alone to pay his debt without helping him.

blind-as-a-bat_2

custard_cream wrote: »

Does anyone have any experience of banks and their "patience" in having a joint overdraft paid back after one of the account holders goes bankrupt?

My wife and I have a £5000 overdraft limit and it's normally around there. Once I go BR, any idea how HSBC may treat my wife?

We where with the TSB when i went BR and had a joint agreed OD of £300.

On me going BR the bank without contacting my OH cancelled the agreed overdraft and started adding unautherised overdraft charges straight away, i played merry hell with them as they gave my OH no chance to come to an arangement before doing so, they did withdraw the charges, made it autherised again so no more would be added but still charged the intrest.

We arranged a re-payment schedule, but they screwed that up too as every month we payeed £25, they reduced the overdraft allowed by the same, then added intrest taking her over the agereed overdraft limit again, and again added charges of £30, so she was getting knowhere paying it of

It took me six months to get them to realise there mistake, and to accept it was there mistake, not ours, so we where going to withdraw payment as they had not kept to there agreemant, but i eentually got hold of someone that understood what a mess they had made of it and put it right.

So in short they treated my OH like cr&p, untill we argued back, and even then the tone of the conversations with some there was disgusting

But that was Lloyds TSB, so cant say if HSBC will be any better.....or worse

custard_cream_3

Thanks you two. I've been advised by the official receiver's office that I should simply let HSBC know the position as soon as possible and that way, they may be more approachable than if I mucked them about. Of course, I'll wait until we've got some funds somewhere else first though.

maxmycardagain

i had a £10K loan with HSBC on a joint account, 6 months before i went BR i tried to get the wife off the account, HSBC couldnt do that but did close the account and transferred all dealings,debts,loans and DDM's to my new sole account which all went into my BR......hence the credit crunch i think

custard_cream_3

Well, I've got a personal loan with HSBC but it's in my name only so I guess they can't then chase my wife for that just because we happen to have a joint current account can they?

skylight

No Custard, they cannot. They can only chase what is listed with your wife. The personal loan was yours entirely and nothing to do with your wife therefore included completely in your BR. If they try to tell you otherwise tell them to go forth and multiply.

Its just the joint current account you have.

custard_cream_3

Thanks Skylight, that's good to here. I take it they can't convert unsecured debt into secured debt either then? They have our mortgage! I'm currently paying interest only and that's going to have to continue until the economy picks up. I guess it's not in their interest to push me into capital repayments too, because the house has almost no equity in it!

I've been with HSBC since I was 13 and have had the same account manager for the past ten years. We've always got on really well which, I hope, might help to reduce any unpleasantness which might otherwise go on, and which is why I think I may just be upfront with them about what the future holds.

skylight

Yes they can convert into secured. The joint loan is now solely your wifes and if her name is on the property they could still go to court to secure this debt if they wanted to.

There is a process to this, but this is changing next year to make it simplier for them to get the loan secured. Basically at present, if you default on the agreement (note agreement - so if they want £500 a month and you can give £50 its not agreed so they can take it to court), they can take you to court for a CCJ - at that point an amount should be forcibly agreed by the courts for both parties. If that is not paid then they can go back to court to put a charging order on the property. NExt year it changes so they can CCJ and CO at the same time.

custard_cream_3

Ah, ok. Not so worried about the overdraft really as she can take care of that hopefully. I was more concerned they may add my sole-name personal loan to the mortgage.

skylight

No, because that loan has in effect, been written off as its included in your BR. Doesn't mean that there is not a small chance they may try though!!! Unlikely, but you never know!