Savings and bankruptcy

Kevin_1973 · 12 January 2009 at 12:36AM

Just want to clarify regarding a husband and wife's individual savings. If husband was main source of income over the years and has placed savings in his name and wife's individual name for eg full ISA allowance to take advantage of tax free status.

Husband then goes through bankruptcy proceedings. Are the savings in wife's sole name safe from OR even though they clearly came from husband's income over the years.

Thanks for you advice.

DaveBrum_2 · 12 January 2009 at 12:47PM

If they are in her name, then the savings are hers. The husband could try and prove it, but that would be down to each OR whether or not they would accept the proof.

maxmycardagain · 12 January 2009 at 12:50PM

how would the OR know where the ISA's were paid from, unless told?

DaveBrum_2 · 12 January 2009 at 1:09PM

Did the husband have a direct payment coming from his bank account into his wife's account? This could be used as proof.

Kevin_1973 · 12 January 2009 at 5:23PM

Thanks for all the replies. My income would have been paid into a joint account that we used to payy all household bills from. Surplus income would then have been paid into our sole ISA accounts.

Kevin_1973 · 14 January 2009 at 12:45PM

So am I right in saying that if the savings are in my wife's sole name then they are treated as her assets by the OR and not mine even though it is clear over the years that the surplus income was from the husband's higher income. All income went into joint bank account and surplus income was distributed into sole savings accounts.