joint bank account

[crg]

I am in the process of sending out my letters of authority to my creditors, But theres one i`m scared of sending to my bank as i am doing a iva in my name but my overdraft is in a joint name (my ex-wife, we split up a good few years ago and kept open the account for my wages to be paid in, I am currently trying to get her name taken off, so basically shall i wait to until the bank haven taken her name off before i send the letter or will they still pursue her for the money, confused and dont know what to do.

thanks
crg

[PoorbutHappy]

My wife got loads of grief because of our joint overdraft and in many ways I wish I had not included it in my IVA.

But at the time I thought Lloyds TSB were a reasonable bunch to deal with.

It took about 6 months for them to recognise I was in an IVA, they then decalred my wife a "bad debtor" and passed the full amount over to a Debt Collector (part of Lloyds too though they tried to keep that part quiet). Then despite actually paying them money, they declared that "no arrangement" had been made, and passed it on to another crowd, who offerred a reduced full & final type payment, which she accepted.

So lots of grief and she now has a poor credit rating.

Only good thing to come out of it is the fact that Lloyds have lost £500 by being unreasonable, and I have in effect lost another £2000 from my initial debt as the matter is now "fully settled"

[MelanieGiles]

There is no choice about including a joint overdraft in an IVA. The bottom line is that you have to, as you are both jointly and severally responsible for the debt. It is odd that it has taken so long to do this following your separation, and the bank will be concerned if her name is removed so soon before you enter into IVA proceedings. Do make sure that you are honest with them if you intend to continue to ask for your wife's name to be removed from this account.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva_squirrel]

Hi crg,

Unfortunately you have to include the overdraft in an IVA. I would be upfront and explain the situation and keep asking to remove your wifes name from your account.

Regards,
Michelle P.

[iva experts]

Hello crg,

As the overdraft has been added to the creditors list in your proposal this then means that you will be covered if your IVA is accepted and that your ex-wife can be pursued for the full amount of debt.

The best thing to do is be up front and honest with the bank, Is there any particular reason why you have only waited till now to remove your wife from the account?


Best Regards. IVA Experts

[crg]

ok thanks if she is removed before i enter an iva can they still chase her for the money

thanks
crg

[MelanieGiles]

Not if they have removed her from contractual liability to this debt.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[crg]

thanks Melanie, worried sick that they will chase her, we`ve just got back on talking terms last thing i want is to upset her and drag her down with me

thanks
crg

[MelanieGiles]

You are doing a very honourable thing by your ex-wife, and I hope your discussions with the bank work out for you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk