Joint account with someone in an IVA?

skitzyd43

Hi! I'm after a bit of advice please!

I have poor credit history, but my new husband is in an IVA. For the wedding we received some cheques in our joint names. My issue is that we don't have a joint bank account.

Rather than have to get the cheques re-issued I'm trying to find out if there would be any complications to opening a bank account with my husband. We only want to open an account to access anything we receive in joint names, now and in the future. It will then be transferred out of said account so there will rarely be any money in it. Is there any risk to my credit rating or risk of me being liable for his debts if we open a joint account? Would there be any risk of him getting in trouble for having the account either?

Thanks!

National_Debtline

Hi skitzyd43


Congratulations on your nuptials.


There shouldn't be any issues with opening a "basic" account as these accounts do not offer an overdraft facility and are thus not credit checked in the usual way. Opening a joint account can not make you liable for his existing debts (which in any case are being addressed by his IVA). It should not in itself create any automatic connection between your respective credit reports either, as it is not an application for credit in the strictest sense. However I would recommend that you ask your prospective bank to confirm what (if anything) they would report to the credit reference agencies. Experian produce a useful guide to some of the credit issues faced by co-habiting couples:


http://www.uk.experian.com/assets/consumer/downloads/consumer/creditCrossroads/livingTogether.pdf


A separate issue from your husband's point of view is that (his share of) any wedding gifts received could technically be classed as assets/windfalls in his IVA, and strictly speaking he would normally need to report any such gifts to his insolvency practitioner in order to comply with the IVA's terms and conditions.


Dennis
@natdebtline

skitzyd43

Hi Dennis, thankyou, and many thanks for your quick reply! I think the safest thing may simply be to get the cheques re-issued in my sole name to avoid the association. The majority of our funds were received as cheques in my sole name from my family etc so they are technically my funds, not his? The ones which are in joint names amount to maybe £100 but i will mention it to him. Thanks again!

foxy-stoat

skitzyd43 wrote: »

The majority of our funds were received as cheques in my sole name from my family etc so they are technically my funds, not his? The ones which are in joint names amount to maybe £100 but i will mention it to him. Thanks again!

Thats the spirit, I see the wedding vows mean less to you !!!

Good lucks

skitzyd43

Lol! our vows didn't mention anything at all related to money!!! however, it goes without saying that what is mine is his, and vice versa in theory! On paper that is not the case! I am not listed on his mortgage, and we have no financial ties, which is how it will remain. The cheques were made out to my maiden name for simplicity as thats what family members chose to do.. It just also helps that on paper everything is kept separate where the IVA is concerned. why should i suffer the loss to the iva when its his and his ex-wifes debt. not mine.

Lincsdebt

Hello, any cheques you have made out in your maiden name shouldn't be a problem, I had something sent me a few years after I re-married and the bank just checked back, as the account was opened in my former name. If you're the same, then should be fine.
There used to be a thing where you could assign the cheque by signing it on the back - does this still exist? If so, your husband could do this and then you could pay in to your account without troubling the relatives. Just a thought.