Joint overdraft on single DMP

Shiraz69

Hi everyone, Ive just started my DMP in December with 49k worth of debts I am paying back £400 a month and my DFD is Dec 2021 included in this is a 5k overdraft with Lloyds which is a joint account with my husband. My DMP payments are covering the charges only and my husband is going to try to chip away at it. I don't think Lloyds realise Im on a DMP even though I have a 14k cc debt with them which they have defaulted me already.Does anyone know what will happen will they allow us to make what payments we can afford? Thanks

DS4215

I had to include my OH on the DMP as two joint accounts were affected (one was paid off within 2 months). I was told that because it was a joint debt we both had to go on it to proceed with CCCS.

If it is the account where you are paid, get a new basic account and arrange to be paid into that.

Tixy

If the debt is included in the DMP then OH will become responsible for keeping up repayments on the account. Its likely that once you have been in the DMP a few months the overdraft will be recalled, and a default issued (against both you and OH).

Presumably you've both opened up new bank accounts elsewhere for day to day banking?

Who is your DMP with Shiraz? it is with one of the charities? or have you had some advice from one of the charities, 10years is a long DMP to be entering into, have you looked at other options as well?

Shiraz69

Im with cccs we have both set up new bank accounts. I haven't really looked into anyth
ing else it is what they recommended. when I asked cccs about the overdraft they just said Lloyds would proberbly come after my husband for his half which will be fine if they allow him to pay in affordable installnents. I know its my fault I have been living on credit cards for basic living for years and just got deeper and deeper and interest rates went for 15% to 30% and I couldnt even afford the minimum amount payments. It was a shock when I totalled it all up. I am getting used to budgeting and I never want any more debt. I just want to be able to keep my house and be able to feed my family.

Tixy

Did they discuss an IVA with you at all? (there may be a very good reason why its not suitable, but usually they would talk you through all your options).

The bank may agree to let your husband repay half of the overdraft, but they could chase him for the whole amount. They are likely to allow him to pay in installments (although with a default on the account).

RAS

Shiraz69 wrote: »

When I asked cccs about the overdraft they just said Lloyds would proberbly come after my husband for his half which will be fine if they allow him to pay in affordable installnents.

They will probably come after your OH for the whole of the overdraft not just "his half". It is a joint and several liability which means you both owe it all.

Shiraz69

Thanks Tixy they didn't discuss IVA but most of my dealings with them have been by email. I used the debt remedy on their website and it suggested DMP is any benefit in doing IVA instead?

Thanks Ras at least I now know what will happen. I don't suppose my husbands credit rating will be too good now linked to me but I don't think he is going to want debt in the future either. Better to get defaults over with as quick as possible as far as Ive gathered on here.

BlushingRose

Our DMP is now, currently, 14 years with CCCS. They've never suggested anything other than a DMP x