Childrens Savings Accounts ( Bankruptcy )

bluehammer

Advice appreciated.

My sons 10 and 13 both have Savings Accounts with Barclays, which I opened for them.

My Husband has very serious debts with Barclaycard, which he is unable to pay due to illness, he is thinking of Bankruptcy.

We sold our home to rent, but there was nill profit.

I have no debts at all, but have asked to be taken off the Joint Barclays Account, as Husband still has a debit card and access to overdraft which he is still useing. He still spends and this is causing rows.

I have opened a Cashcard account in my own name to have Child B and my Tax credit to be paid into, so he cannot access this money.

If he declares Bankruptcy are the Childrens Savings Accounts safe, and any money I have in my Cash Card Account safe from Barclaycard and the OR
safe.

He does not know about the Childrens Accounts or my Cash Card Account
otherwise he would spend this.

Sorry for long post.

RAS

Hi chuck.

Rotten situation to be in. If he goes bankrupt it is his accounts that the OR is interested in.

They will not touch your accounts or the kids.

Barclays should not offset his debts against accounts in the name of others in the family. Are you sure there are NO joint accounts anywhere?

The thing you really need to watch is the council tax as liability for the whole of that could become yours. So make sure it is completely up to date at all times.

bluehammer

Thanks RAS

Only the Current Account I am trying to get my name off, I have cut in half
my debit card and handed back to Barclays. He will not go in and close it.

Council Tax in joint names, but I pay that DD, from my Cash Card Account.

Just the boys money my main worry, that they will not suffer.

Thanks again

pops679

Did he have anything to do with opening the accounts, or was it just you?

If just you - the money won't be touched.

The only time there can be a problem is when the person who has become bankrupt has opened the account with themselves holding the money in "care of" the child (this would be in the account title). If accounts are just in the childrens' names then they won't be touched.

RAS

With that joint account, you must get it closed before he goes BR. Absolutely must.

It has not happened previously but what we had reported here last week was hubbie went for an IVA. joint bank account and big loan in his name only with the same bank.

The bank are using the right to offset his loan agains the jount back account and making her fully liable for the joint account even though it is his debt.

We do not think she can do anything about this.

Hubbie was told that he had to close the joint account but told her it was OK for both names to still be on.

As a starter for 10, go into the bank and tell them that all future debits must have both signatures. That removes any incentive for him to keep the account.

And the other thing is that if you have a joint bank account, you are financially linked. When he goes BR, that wreckes your credit rating.

Since you are renting, it is to his advantage to keep your credit record as good as possible so you can pass the credit checks if they are required.