Joint RBS overdraft

Polly_Wolly_Doodle

Hi,
Can someone tell me what happens to a joint OD when one spouse goes BR and the other does a DMP?

We have a joint current a/c with RBS (have stopped using it and moved to a joint co-op cashminder) with a £7k OD outstanding.

Does it get halved and half is covered by Dh's BR and i have the other half added to my DMP, or does it all fall to me to clear over a long long time?

He has 5 ccs and a car loan that are all in his name.
I have 7 ccs, a personal loan and we have a joint mortgage (which i'll buy out as there is no equity in it) and a joint secured loan.
I'm not going BR as i'm an accountant (if you don't laugh you cry).

Just would really like to know what happens to the OD as a non-secured joint debt.

Thanks in advance.

dojoman

The joint O/D will fall to the person who is not BR.

Polly_Wolly_Doodle

Thanks for replying dojoman, not good news then. Actually i suppose the silver lining is with even more debt hopefully that makes the case for freezing interest and charges stronger for my part of DWD? Straining to see any glimmer of light at the end of the tunnel...

Will go and update my debt s/sheet then, :(

kepar

Under the new rules the OR will wait 27 months before dealing with your property.

Advertising that you are repaying your in laws I suggest is not a good idea.
If your husband is, he could be in trouble for favouring a creditor and if it is you I am sure your creditors will not be to impressed

alastairq

Advertising that you are repaying your in laws I suggest is not a good idea.
If your husband is, he could be in trouble for favouring a creditor and if it is you I am sure your creditors will not be to impressed

Is the above referring to another thread?

kepar

alastairq wrote: »

Is the above referring to another thread?

I am just reading the signature AQ

Polly_Wolly_Doodle

Are the new OR rules applicable here in Scotland Kepar do you know?
I'm not sure if it will make any difference as no equity in the house and when interest rates go up i doubt that'll help the market recover, but interested to know why you mention it??

Not meaning to advertise paying back the in-laws, just trying to give myself a goal while we wait for DH's BR and my payment plan, then i can have a [STRIKE]really depressing[/STRIKE] realistic sig.
TBH would just like to at least get some money back to them while we can, is this a bad move? We were advised BR fees at £100 and buying out the trustee's interest in the house would be £500, so i was hoping to help the in-laws a bit now in case we can't under the BR / DMP.

I'm trying to keep my chin up, not meaning to be flippant, so any help / comments are welcome. The more i know that more i can prepare.
I've read through all the leaflets from national debtline and as much as i can on the AiB booklet and website but obviously real experience is much more valuable.

Thanks.

mel12

I'm not sure if the rules are the same in Scotland, but in England any money your husband pays to the in laws will be counted as preferential treatment to one creditor over another, and the OR has written to family members asking them to pay the money back

I would think it would be OK for you to pay them money though since a DMP isn't a legally binding thing. might be a problem if you plan to go BR in the next couple of years.

sorry I know thats not great.

Polly_Wolly_Doodle

Thanks Mel, i'd hate for them to have to hand the money back. They are not well off at all and they lent us this to get our house sorted having made a proft when they downsized. This is all they have left of that profit having finally treated themselves to a couple of cruises after a lifetime of living hand to mouth.

I was hoping it would be viewed as a priority debt given their age, health and the fact our children are their only grandchildren but i appreciate RBS, Opus et al won't see them that way...

CAB are not keen on my going BR due to my job and the potential difficulties of getting jobs in the future, so my hope is to go into a DAS once smallest is out of nursery and the length of a DAS is more acceptable than it currently would be.

Thanks again.

Ineedaname

Unfortunately, I think the priority of debts is as follows:

Roof over your head
Bills in relation to that roof
Loans/Credit card/Store cards
Family/friends

However, you should proportion your payments across all debts if you are entering into a debt management plan or making offers direct. Anything else will be seen as preferring one creditor over another.

JCS1

Loans/credit cards/store cards and family/friends should be treated the same as they are all unsecured debt.