I need some advice regarding my husbands bankruptcy

zaphodbeeblebrox

My husband in the last few weeks has filed bankruptcy. Among the debts that were included were a personal loan from HSBC bank that was solely in his name, but had a standing order set up to pay it monthly. When he started filing bankruptcy he requested HSBC cancel the standing order as there would be no money in the bank account (which is a joint account) to pay it. They refused. Subsequently, the bank account has gone in arrears from the loan payment being taken out of an empty account. When husband filed, he included that overdrawn amount on the paperwork, so it would have been included in the debts.

Today I have received a letter from HSBC informing me the account has been frozen and that they are chasing me for the £267 that the account is overdrawn to, even though the payment was for a loan my name was not on. I have no income, I'm a stay at home mum to both our pre school age children. They have included in the paperwork a Statement of Means to fill out regarding my income , my spouses income, any property we might own and how much I intend to pay them per week/month to pay off this debt. Under the terms of the bankruptcy the official receiver has deemed that we should pay £72 per month for the next three years for the debts. Am I going to have to pay this even though the cause of the debt was not officially mine and I have no income, and that the debt was included in a bankruptcy? Looking for advice before I contact the bank.

gettingitsorted

Hi Has your husband actually been declared bankrupt yet?

Was it a joint account ?

fermi

If the debt was included in your bankruptcy it is possible that HSBC have acted illegally, within the terms of that order. I would suggest that your husband urgently contacts his Official Receiver for their opinion/ruling, explaining all the circumstances.

HSBC may try to mess you around or mislead you, but they won't dare with the OR. It may well just be an HSBC employee not understanding the legal consequences of bankruptcy. Whatever happens you must talk to someone that has the clout to tell HSBC to back off if they have acted wrongly...

Hope this helps.

Mike_St_Helens

zaphodbeeblebrox wrote: »

My husband in the last few weeks has filed bankruptcy. Among the debts that were included were a personal loan from HSBC bank that was solely in his name, but had a standing order set up to pay it monthly. When he started filing bankruptcy he requested HSBC cancel the standing order as there would be no money in the bank account (which is a joint account) to pay it. They refused. Subsequently, the bank account has gone in arrears from the loan payment being taken out of an empty account. When husband filed, he included that overdrawn amount on the paperwork, so it would have been included in the debts.

Today I have received a letter from HSBC informing me the account has been frozen and that they are chasing me for the £267 that the account is overdrawn to, even though the payment was for a loan my name was not on. I have no income, I'm a stay at home mum to both our pre school age children. They have included in the paperwork a Statement of Means to fill out regarding my income , my spouses income, any property we might own and how much I intend to pay them per week/month to pay off this debt. Under the terms of the bankruptcy the official receiver has deemed that we should pay £72 per month for the next three years for the debts. Am I going to have to pay this even though the cause of the debt was not officially mine and I have no income, and that the debt was included in a bankruptcy? Looking for advice before I contact the bank.

Hi there,

Ok. Tell HSBC to contact your husbands OR. If they refuse send an email or call your husbabds OR (He may have to do this) and tell the OR what has happened. They are reasonable and helpful and will deal with this for you... Once the OR has had words, theyll leave you be.

The £72 you quote. Is this an IPA that your husband has been given by the OR , This is a bit of whats left after all your expenses have been paid each month. They should base this on your husband alone and not you...

zaphodbeeblebrox

1. He has been declared bankrupt and has had his interview with the OR. It was a joint account.

2. Yes, an IPA by the OR.

gettingitsorted

zaphodbeeblebrox wrote: »

1. He has been declared bankrupt and has had his interview with the OR. It was a joint account.

2. Yes, an IPA by the OR.

OK thanks,

i would get your husband to ring his OR asap and forward the letter on to them aswell .

fermi

Then the only legal way HSBC can recover any of the money owed, post bankruptcy, is via the OR/Trustee and the IPA/IPO.

If they have taken money for a debt included in the bankruptcy after the fact, then they have probably acted illegally.

You should contact the OR/Trustee ASAP.

Do not depend upon HSBC to contact them out of the goodness of their hearts, because they don't have any.

Good luck.

PS: HSBC were one of the creditors in my bankruptcy, and they were a complete pain in the ***. The OR soon sorted them out though...

zaphodbeeblebrox

Thanks for your help everyone. I've just called my husbands OR and she said that because the account was in joint names, they are within their rights to chase me for the money.

Grr!

fermi

zaphodbeeblebrox wrote: »

Thanks for your help everyone. I've just called my husbands OR and she said that because the account was in joint names, they are within their rights to chase me for the money.

Grr!

That really doesn't sound correct, if the original loan was in your husband's name only. But I don't know how far you can get arguing with the OR.

I would write to the OR with all the details, since quick queries over the phone can often result in facts being misunderstood. Plus a written query will probably be dealt with by someone with more seniority in the OR's office.

Mike_St_Helens

zaphodbeeblebrox wrote: »

Thanks for your help everyone. I've just called my husbands OR and she said that because the account was in joint names, they are within their rights to chase me for the money.

Grr!

Was the LOAN joint or in your hubbys name, and was the BANC ACC joint, or just in your name?

We'll get to the bottom of this with you.

fermi

Hmmm... Her little green light has gone black

I hope she comes back, because I don't think this should be the end of this...