Debt Questions forum. General questions on debt issues.

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By anne01
#270213 Hi everyone!...After a lot of agonising and a lot of reading of posts i have decided to go BR and my OH will apply for a DRO. We have a joint bank account with overdraft wich we are £120 into.We both have c/c's connected to this account..OH owes £2000 and I owe £1800.I also have other c/c debt totaling 16k..Should we pay the overdraft and close the joint account or should we leave it,as we are saving for BR and DRO..My OH is on ESSA as he is sick and i get ctc and cb we have no assets at all. ..Thanks for advice in advance :|
By chandjay
#270223 Hi,
Don't close the bank account. Just get your wife to open another one in her name only.
When you go bankrupt, the joint account will be seized by the OR, so it will in effect get closed anyway.
You can use the joint account right up to the day that you go BR, and then straight after your bankruptcy, you can open another account either with Barclays or Co-operative.
If there is any money in the account when you go BR, then just transfer it - the day before - to your wife's new account, just leaving a few coppers in it, so it is in credit when the OR seizes it.
Take your time with the joint account and your wife's new account, making sure that any D/D's, Standing Orders etc, are up and running, and any payments that your wife receives are going into your wife's new account before going BR. It will make things so much easier.
I would definitely make sure that the overdraft is cleared on the joint account, again making it easier when the OR seizes the joint account.
I would have thought that if there is an overdraft on the joint account, then after you go BR, your wife will be chased for it.
Try to make the transition as smooth as possible. It really does make things easier for all concerned.
By anne01
#270243 Thanks Chandjay!!...Ahh..If we stop paying the c/c's the minimum and just pay a token amount would the cards connected to the account take payment from the o/draft without our consent?

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By JaneClack
#270253 Certain creditors do but not all.

We have seen HBOS do this but with the new Lending Code guidelines they are supposed to let you know before they do this!
By anne01
#270263 Thanks Chandjay!...We really cant afford to keep paying the c/c's now,so if we give them all a token payment would the cards connected to the joint account help themselves from the o/draft without our consent?

By chandjay
#270303 Hi anne01,
I've finally gone puddled !!
In my reply, I thought(presumed) that you were male(don't ask me why- I'm just daft), but of course, in your post it doesn't specify whether you are male or female.
You don't need to say whether you are male or female, but for some reason I replied to your post as if you were male ..... if you are female, then I apologise.

Now, back to your question,
Try to keep up the minimum payments on your C/C, even if it means paying the credit card with its own money. It won't matter, as you're going BR anyway, but it will not give the bank any inkling of what you are going to do(go bankrupt), so they won't have need to help themselves to the overdraft.
Just try to keep things as normal as possible until you hit them with the ... BANG !! ... bankruptcy. And then it's too late for them to do owt.
By anne01
#270323 LOL Chandjay! Apology accepted....Bit late with hubby's but i will pay it now,and will pay mine when its due..but cant afford the others :(
and save for BK