chasing joint debt if DRO???

dkd1987

Hi all

I am considering a DRO.

A part of my debt is roughly £5300 joint debt with Natwest and HSBC - all overdrafts, the majority being Natwest.

Problem is - I know they will chase my husband for the whole amount, and this puts his total HSBC debt at around 17k

He owns a house in his name only, it's worth about 125k max and has a mortgage of 103 k on it.

We have two small children (6 and 1) and he is worried they will go after the house! Between us we owe 36k, of which 25k is either his or joint.

DorisTrousers

You are correct inasmuch as they will chase him, but they are unlikely to go after the house.

If he can afford his contractual repayments then there is no need to consider recovery action and he can simply keep up the payments on them. If he can't then he needs to get out of HSBC sharpish and open a new bank account where he doesn't have debt, and then take debt advice of his own. Options open to him will include DMP and IVA (not BR if you want to be sure of keeping the house)

wba31

The problem comes in that the DRO Unit will see that you have matrimonial beneficial interest in the house as your husband owns the house, so you would find that you are not eligible for a DRO.

The other issue you have is proving that your car is worth less than £1000.

I explained this in a previous thread https://forums.moneysavingexpert.com/discussion/5434848

fatbelly

dkd1987 wrote: »

Hi all

I am considering a DRO.

A part of my debt is roughly £5300 joint debt with Natwest and HSBC - all overdrafts, the majority being Natwest.

Problem is - I know they will chase my husband for the whole amount, and this puts his total HSBC debt at around 17k

He owns a house in his name only, it's worth about 125k max and has a mortgage of 103 k on it.

We have two small children (6 and 1) and he is worried they will go after the house! Between us we owe 36k, of which 25k is either his or joint.

As long as the mortgage is being paid, the house is pretty much safe.

If the overdrafts are outside their limits then the banks could get a ccj and then look to secure them as a charging order but that is a long process and an order for sale is very very unlikely to succeed in your situation.

It sounds like you each need a solution that works for you - have you run the details past someone independent like CAB or National Debtline?