HSBC Joint Account & a Sole IVA

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homershairdo

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Post by homershairdo » Thu Mar 03, 2011 3:02 pm
Hi all,

Just interested in the mechamics of a sole IVA (mine - potentially) and a joint bank account with HSBC.

We have a joint account, and I am entering an IVA with a debt with HSBC. Would they close the account, or offset if I were in an IVA? We also have an overdraft on the account, which will be included in the IVA. How will that work if the account remains open.

And yes, we have set up an acoount else where, but we are not able to shut the HSBC account until there is a zero balance!

Cheers!
 
 

James Falla

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Post by James Falla » Thu Mar 03, 2011 3:08 pm
Hi there

Given that the overdraft is in joint names with someone else, then the first thing to pooint out is that if you do an IVA, they would remain liable for 100% of this debt.

My advice would be to stop using this account all together. You should then agree how the other party is going to pay of the outstanding overdraft debt.
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homershairdo

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Post by homershairdo » Thu Mar 03, 2011 3:40 pm
Hi James,

How would that work? I'd be paying through the IVA, and my psrtner would also be paying. Would they close the account, or offset, if her wages got paid in to pay off my credit card?

Thanks!
 
 

James Falla

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Post by James Falla » Thu Mar 03, 2011 3:45 pm
Yes, that is correct. Even though you are paying your IVA, the other party would still remain liable to pay the overdarft until it was paid in full.

In terms of off-setting it is very difficult to tell exactly what would happen. To be sure I would advise her not to pay any further money into the account
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luluj

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Post by luluj » Thu Mar 03, 2011 5:11 pm
HSBC are well known for automatically issuing a closure notice on accounts that have an IVA. They trawl the insolvency register and issue these notices giving your 14 days to arrange alternatives. I would strongly suggest that you do this now to avoid having to rush - other banks that accept IVA customers include Halifax, Co-op,Yorkshire - you may only be able to get a basic bank account, but most of these are now coming with a debit card !
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sbusby2004

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Post by sbusby2004 » Thu Mar 03, 2011 5:13 pm
i had a joint account with HSBC and most of my debt was with them when they found out i was going down IVA route they froze my account. i tried to pay overdraft of because it was only for £200 but i count'nt pay it bacuse they froze account. hubby IVA was rejected so he was on DMP and they chased him for the full amount we did pay it of straight away but as soon as they find out you are going for IVA they freeze your account they don't even tell you.
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kallis3

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Post by kallis3 » Thu Mar 03, 2011 5:18 pm
HSBC are notorious for trawling the Insolvency Register. They will close the account.
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sbusby2004

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Post by sbusby2004 » Thu Mar 03, 2011 5:23 pm
i had everything with HSBC bank account loan credit card mortgage. i think they can be very harsh yes i got myself into debt but some of the credit they gave me should have been rejected as i clearly could not afford it some abit of the blame maybe on there heads. even when i told them i was going down IVA route they tried to look at giving me another loan instead.
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kallis3

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Post by kallis3 » Thu Mar 03, 2011 5:58 pm
Same here - they're just not prepared to be sympathetic to anyone who has financial difficulties.
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Natalieanne7

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Post by Natalieanne7 » Thu Mar 03, 2011 6:01 pm
My husband and I had a joint account with HSBC and the IVA is in just my name. We were warned that they would freeze the account by DFD. They did this and also froze the school accounts where I work because I was a cheque signatury! This was very embarrassing to explain to my headteacher! She was very understanding thank goodness. The overdraft is now being handled by Metropolitan Collections who are HSBC debt collectors. My husband has arranged a payment plan with them and has an allowance written into my IVA to meet his own commitments every month. They are awful people who speak to you as if you are dirt and are very difficult to understand, rude and abrupt.They will ask you to increase the payment after 6 six months but we are lucky as we have saved husbands overtime to pay it off. He is also a named contingent in my IVA but I'm not sure what it means - he may be able to claim for the overdraft when IVA ends and receive a dividend I think. Good luck[:)]
 
 

kallis3

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Post by kallis3 » Thu Mar 03, 2011 6:08 pm
I must admit that when we were in a DMP with HSBC/Metropolitan we had no problems with them and although they phoned up to ask if we could increase our payments, if we told them no they were fine.
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homershairdo

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Post by homershairdo » Fri Mar 04, 2011 10:57 am
That's interesting!

So, in this scenario, I am going into a IVA, and we have a joint account, which could in all likelyhood be frozen. My wife, who will not be going into an IVA, has a sole account with the same bank. Is this likely to be frozen?

Thanks!

Ian
 
 

sbusby2004

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Post by sbusby2004 » Fri Mar 04, 2011 11:49 am
im not 100% sure but if the account is just in your wife's name she should be fine. it will be the account you have your name on.
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ginger3232

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Post by ginger3232 » Fri Mar 04, 2011 11:51 am
hi homershairdo -

My understanding that if you have joint account with HSBc and a overdraft - if you enter the IVA - the bank will go after the full amount from your wife - as she has a single account with them, i wonder whether they will take money from that account so that the overdraft is fully paid.
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