Bankruptcy and Joint Bank Accounts

totallyclueless2010

Okay guys,

I have another question, this time about bankruptcy and a joint bank account.

My partner and I have a joint bank account with HSBC. We have separate current accounts that our wages are paid into and this was purely used as a bills account – we both paid a set amount in every month and our joint household bills were paid by direct debit from this account. When I was made redundant, we changed this, so that all of the direct debits come out of my partner’s single account, however, the balance of the joint account is currently about £1060 overdrawn (our agreed limit is £1000, but HSBC’s “fees” have pushed us over the limit, costing us even more!?).

My question is, what happens if/when I go bankrupt. Will they close this account? (We don’t want it anymore!) But more importantly what will they expect to happen about the £1000 deficit, i.e. is my partner going to be expected to pay it all back as we’re both 100% liable for the full amount, or will they only expect his half to be paid and my half will get wiped off as part of the bankruptcy? And if he is expected to pay it all back, is there any hope of negotiating, i.e. my partner offering to pay £500 back if they forget the other £500 (bearing in mind how much we’ve probably paid them in “fees” over the years?! Or is it best for him just to pay back the full £1000? Should we get professional help with this?

My partner is worried that whilst we’re deliberating, the account is accruing even more debt that he could be liable for anyway, but the thing is he doesn’t really have a spare £1000 as he’s currently paying all of the household bills on his own whilst I’m looking for work!

I’ve heard conflicting things on this matter you see and it’s confused me a little!

Again, any advice would be greatly received!

Kind regards,

totallyclueless2010

philnicandamy

it can be included in your bankruptcy BUT as its a joint account you are correct in thinking HSBC can & will pursue your OH for the full ammount outstanding

they may freeze the account & as well once you go bankrupt as its a joint debt this could affect your OHs credit ratings as well (it will create a financial link on your credit files)

Angiepange

Hi

As far as I know the whole debt will fall to your Partner if you go BR and he doesn't. As any joint debts become liable to the person not going BR. I am wondering if your Partner may be able to negotiate a repayment plan with the bank thats affordable, at least so they could freeze interest and charges?

However I am no expert on this so hopefully someone else will reply too.

Good luck Hun.

ItMightBeUsefulOneDay

totallyclueless2010 wrote: »

is there any hope of negotiating,

No, this is a bank you're talking about. They are not there to help you, they are there to make billions in bumper bonuses for their fat cats at the top.

totallyclueless2010 wrote: »

i.e. my partner offering to pay £500 back if they forget the other £500 (bearing in mind how much we’ve probably paid them in “fees” over the years?!

Any view of "fairness" doesn't come into it. The bank will want it's money, all of it and if you can't pay then the OH will have to. They will not accept £500.

As others have hinted, I would recommend clearing this and shutting down the account BEFORE you go BR. For his credit rating's sake (not yours) as a linked account links you financially.

totallyclueless2010

ItMightBeUsefulOneDay wrote: »

No, this is a bank you're talking about. They are not there to help you, they are there to make billions in bumper bonuses for their fat cats at the top.

Any view of "fairness" doesn't come into it. The bank will want it's money, all of it and if you can't pay then the OH will have to. They will not accept £500.

As others have hinted, I would recommend clearing this and shutting down the account BEFORE you go BR. For his credit rating's sake (not yours) as a linked account links you financially.

If we manage to clear the overdraft and close the account, is it worth my partner writing to Experian to ask to be "disassociated" from me? (I read somewhere that that's an option?) Obviously we'll still be linked by our mortgage, but do you think it would help him?

philnicandamy

its an option BUT the mortgage link will still darg his credit rating down

Highlander56

I have recently been discharged from a Trust Deed and have RBS chasing my wife for an outstanding joint account debt of £4700. They have not been in contact for the 3 years of the Trust Deed but as soon as I was discharged, they started to look for this payment from me. I sent them a copy of my discharge........which they must have been aware of and the letters stopped and they started going after my wife.
Is it any different from BI or is it the same, where they will chase her for the full amount?
Any advice would be appreciated,

discocol

ItMightBeUsefulOneDay wrote: »

No, this is a bank you're talking about. They are not there to help you, they are there to make billions in bumper bonuses for their fat cats at the top.

Any view of "fairness" doesn't come into it. The bank will want it's money, all of it and if you can't pay then the OH will have to. They will not accept £500.

As others have hinted, I would recommend clearing this and shutting down the account BEFORE you go BR. For his credit rating's sake (not yours) as a linked account links you financially.

Hi this last statment how would the O/R view this action, as I have to list this account as closed would they look at it in a bad light, (not sure how to phrase it).

Thanks
Colin.

tigerfeet2006

This is a normal thing that most people do. Just make sure that the money is not seen to be coming from you.