Joint Account and Bankruptcy

aerich28

Hi all, I'm new to this, can't believe how helpful this forum is! However I still have a few questions if someone can please help..

I will very soon be declaring myself bankrupt due to a mortgage shortfall following repossession of my house. It was a house I bought in 2006 before I met my husband. My husband and I have a joint bank account (with another bank, not the mortgage lender) for all of our financial affairs, eg. income, direct debits etc. and I understand this account will be frozen once my bankruptcy is declared. Can I just remove my name from the account to avoid this from happening? But then if I can, will I still be able to receive my wage into an account without my name on it?

I am currently on maternity leave and over the coming months we will be minus every month so we saved up £4k beforehand to get us through my maternity leave. We have no overdraft facility to rely on so this money is needed, however I am worried the official receiver will want it, but it isn't just mine, it's my husband's too, so where do we stand with this? I withdrew this money yesterday for obvious reasons.

Any advice will be greatly appreciated.

Thanks in advance..

alastairq

Hi....since it is a joint account, the bank may not try to 'freeze' it.....however, to be right, you firstly need to disassociate yourselves from each other, financially.

AN option for your husband could be to open a new account in his name only?

But for you.....you need, ASAP, to open a basic bank account for your self and your income.

Currently the two major banks who tolerate BR are Co-op and Barclays.

For a Co-op Cashminder account you need to open it before you petition for BR.

However, it does give you internet access, and a debit card.

Barclays have a basic account, but whilst undischarged, they are reluctant to grant internet access.

Either way, get everything up & running & sorted before you petition BR [there is nor rush for the petition anyway]


Regarding your nest-egg?

The OR will likely only have an interest in your half....but I'm sure your half will get swallowed up by all those purchases for the new-born family member? [hint, hint?}


Have you consulted with one [or more] of the debt charities listed in the stickies?

This action is essential prior to a BR petition, so the Judge then knows you have received appropriate advice regarding the legal step you are about to take.

aerich28

Hi, thanks for reply. My husband and I will still be financially associated as we have a joint loan. I understand your point of my husband opening a new account, but could I not just remove my name from our current account to avoid having to change all direct debits, standing orders etc?

In regards to our nest egg, will the receiver be able to see that this money was taken out? Can they see previous transactions, or can they only see from the date of bankruptcy?

In answer to your question.. I have seen a solicitor and am off to the CAB tomorrow..

luvchocolate

Hi as advised you are best opening a basic bank account and get all your d d and salary in place before you go br as these accounts are not frozen. the O.R will ask to see either one or two years bank statements and credit card statements. They will ask you about anything they need to know, just be honest thats the best advise x