My bankruptcy & the affect on my wife - Halifax have issued a default against her!!!

bankrupt1983

Hi everyone.

As the title suggests, I have recently been declared bankrupt. So far it's been totally fine and actually quite a relief but we recently found out that Halifax has issued a default notice on my wife's credit file because of our joint account. They did not get in touch with me (or her) to discuss this or ask if my wife wanted to clear our overdraft on that account. They just shut both accounts and cut off online banking access.

I would be really grateful if anyone has any advice about what I should do now. We are going to speak to Halifax and explain the situation and see if they will rescind the notice but I suspect that they will want the money from my wife that was outstanding on the overdraft, which is £5k. We could probably scrape that together but to be honest it would be a lot better for us if we didn't have to pay it, and I had, perhaps wrongly, assumed that would be the case for at least half of it given my bankruptcy.

Any and all advice gratefully received!

[Deleted User]

You're correct.  They will look to your wife to settle 

There is no 'half' on joint debts.  Both parties agree jointly and severally liable.

bankrupt1983

Thanks for your reply.
We've heard nothing from the bank which seems weird. Will they pursue her for full payment then or write it off in your experience?

[Deleted User]

They'll pursue it.  There's no reason for them to write off such a decent sized debt 

bankrupt1983

True.

My wife would like to keep the account open and start paying down the overdraft. Hopefully they will allow that, with me out of the picture of course.

Thanks for your advice. 

[Deleted User]

They'll close the account but may allow her to open a new one.

The debt will be dealt with via the collections department.

luvchocolate

Unfortunately this is a normal procedure. 
Haliifax are not BR friendly and will persue the other partner in a joint account. As would any utility company with both names on the account. 
Which is why we always advise to open a separate bank account..so you are not linked. 
I'm surprised which ever charity you took advice from didn't point this out to you. 

Galloglass

I'm surprised which ever charity you took advice from didn't point this out to you. 

I'd be surprised if they didn't. Did you read through all the paperwork they gave you before you took the plunge?

Any Council Tax debt? Or water / other utilities?

John_

bankrupt1983 said:

True.

My wife would like to keep the account open and start paying down the overdraft. Hopefully they will allow that, with me out of the picture of course.

Thanks for your advice. 

And please note, as above, that she owes the full amount, not only “her” half.

It’s not clear at all why you’d expect that despite your wife being solvent that she’d not be liable for her debts, which makes me wonder if there are any other important facts that you might have not been aware of.