joint acc overdrawn, bankruptcy question

debtsucks

hi everyone (again ha ha ha)

as you may be aware DH is going bankrupt got the date sorted
all debts are in his name, apart from 1 , which is the overdraft, i am ashamed to say its 9,000!!!!:eek:

i am not going br as we want to try and save the house(beneficial interest)

thing is not sure which way to do things, a family member will be giving us the 9,000 to close acc as i am aware they will come after me for it,

So which way do i do things do we put the 9,000 in before the bankruptcy date to make the acc zero balance therefore it can be closed?

Or does he go bankrupt first, then family member give the 9000 then i settle the overdraft

If we put the 9,000 in first is it seen as favouring, not sure if it will as we are not listing this as one of his debts as its in both our names.

Any advice info would be great as this is really bugging me

thanks in advance for any replies i may recieve:j

skylight

Do it AFTER when its in your name only.

debtsucks

skylight wrote: »

Do it AFTER when its in your name only.

hi there, many thanks for quick reply, do you mean when he has actually gone br????

its just that i read on this forum, that when or informs bank of br, it will go against me too!!!

Or do i pay it the day after he has gone BR (meaning that bank prob wont hav been informed then)


I am so confused its untrue, will DH be in trouble with OR for clearing 9,000 overdraft, or does it have nothing to do with them because the bank is in my name too??????

skylight

Your OH will be in trouble (how much, I dont know as its a joint account) as he will be seen to favour a creditor, and £9k is a lot! Although I suppose technically he could argue that you paid the joint account.

The debt has probably already gone against you if you have missed any payments on it at all (defaulted) but I cannot see why is should go against you by association. My EX recieved a letter from a joint bank account within a week after my BR asking for full payment.

If your bank is that quick, simply call them stating you will pay the money ASAP.


However. Is there a chance you may go BR? Are you laden with debt too? Is there equity in the house and is it worth it (as in keeping it?) And lastly, have you had advice from one of the debt charities about this?????

debtsucks

skylight wrote: »

Your OH will be in trouble (how much, I dont know as its a joint account) as he will be seen to favour a creditor, and £9k is a lot! Although I suppose technically he could argue that you paid the joint account.

The debt has probably already gone against you if you have missed any payments on it at all (defaulted) but I cannot see why is should go against you by association. My EX recieved a letter from a joint bank account within a week after my BR asking for full payment.

If your bank is that quick, simply call them stating you will pay the money ASAP.


However. Is there a chance you may go BR? Are you laden with debt too? Is there equity in the house and is it worth it (as in keeping it?) And lastly, have you had advice from one of the debt charities about this?????

the only joint debt in my name is the overdraft facility, and there is no equity in the house so really hoping to keep it as in doing the beneficial interest thingy, yeah advice has been sought, really is the only option

fermi

I can't see why it would be considered a preferential payment.

His personal liability for the debt would be included in the BR, but not the debt itself since it is joint.

A "preferential" payment is one that is intended to give an "advantage" to either the bankrupt or the creditor. In this case your DH is gaining no advantage and neither is the creditor, since the debt would still otherwise be owed by you after the BR.

And the payment is not coming from him.

Obviously, get some professional advice on that.

skylight

debtsucks wrote: »

the only joint debt in my name is the overdraft facility, and there is no equity in the house so really hoping to keep it as in doing the beneficial interest thingy, yeah advice has been sought, really is the only option

Not thats it any of my business, but I just wanted to check that by taking the money to pay off a joint debt you were not making matters worse for yourself whilst better for OH! (IYSMIM??)

And as always, Fermi makes total sense! (I'll just shut up and recommend PM's direct to Fermi instead, or campaign for his mobile number to become public information!)