Help!! Joint accounts..

pistonbroke

As title? maybe not, it's a little more complicated than that!!


I have two bank accounts, one is in the names of my wife and I. No problem there as we have both just declared..

The problem is the other account. It is in the name of my ex, who left 4 years ago, and it is overdrawn....
Before she left, we went into the bank and filled out the forms to take her off, but the bank "lost" them, and were not bothered by the fact, and since I have no idea where she is, I couldn't get it changed when I did find out the banks booboo...

I have two concerns, the first of which is obvious, would the bank come after her "legal" half of the debt, and the second is the bank still has her living at my parents house, from when I moved back home 4 years ago. They cannot move her address (even though they have done before) and they cannot take her off without her signature..

So what are my options? Am I worrying about nothing?

Thanks

pistonbroke

Well, nothing in writing of course....


I haven't seen her in years and don't really want too... but it looks like I may have to track her down.

fermi

I'm not sure exactly what the legal position is here, as I remember there has been a very recent legal ruling on the liabilities of a divorced partner in bankruptcy.

However a professional debt advisor posted a sticky on another forum before this that included:

http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=9905

Before we start this please remember to remove ALL cash from your accounts BEFORE being declared bankrupt, as after the Bankruptcy hearing, the money will technically belong to the OR, and he may refuse you access to it!!

IF THE ACCOUNT IS A JOINT ACCOUNT AND ONE ACCOUNT HOLDER IS DECLARED BANKRUPT THE BANKS WILL TREAT THE ACCOUNT AS IF BOTH HAVE BEEN DECLARED BANKRUPT AND THIS WILL REFLECT ON YOUR CREDIT REFERENCE FILES

Addtitionally, if there is a debt on a joint account, the person going bankrupt will not be held liable for the debt, but the other account holder(s) will

WHERE AT ALL POSSIBLE CLOSE ANY JOINT ACCOUNT BEFORE GOING BANKRUPT, ESPECIALLY WHERE ONLY ONE PERSON IS GOING BANKRUPT

And they had put this bit of the text in red, not me.

I will try to find where I read about the most recent ruling.

pistonbroke

Oh great

fermi

Here is the article I read:

http://business.timesonline.co.uk/tol/business/law/article1769520.ece

This is much more to do with assets such as houses that have been awarded by the court during divorce proceedings.

I'm not sure how this effects your case, as it could be irrelevant anyway.

Still, worth a read for anyone who has been divorced and then gone BR within 5 years.

pistonbroke

SO short of finding the money to clear the overdraft (not sure if this is possible in a BR) or find her and get her off the account.....

fermi

pistonbroke:

[STRIKE]Have you already gone BR? There have been so many recently I'm losing track.[/STRIKE]
Yes you have

Is it worth asking advice from your OR. Some of them are very approachable, and if your ex is liable for some of the debt it should effect how they deal with your affairs, so you should tell them anyway

Just a thought...

pistonbroke

Ok thanks..


One more thing, lets say that the overdraft was cleared, somehow, if for instance we had a money gift, what would happen with the OR?

fermi

I believe the OR would be within their rights to demand the money from the bank, so that it could then be distributed fairly between all the creditors.

I assume that if the account is already frozen then this couldn't (and shouldn't) be done anyway. The payment would be refused.

I'm sure others will correct me if I'm wrong, but I'm pretty sure this is the case.

pistonbroke

The OR hasn't informed the banks yet....


This looks like my only option....

fermi

pistonbroke wrote: »

The OR hasn't informed the banks yet....


This looks like my only option....

The legality, and consequences of making a payment into a joint account in order to remove the liability of the non BR signatory, is something that I think only a professional in insolvency law could make any further comment on.

This forum may be able to help, as there are a few of these among the regular posters.

http://www.debtquestions.co.uk/debt_forum/index.php