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Joint Overdraft - Kevin Maughan 2010-07-25 20:15:56
 
Hi My wife and I are going through financial difficulties at the moment. we had a joint account with an overdraft facility with Natwest. I have been taken to court and now have a CCJ and have been ordered to pay £22.13 per month on this and a load which was in my name. A debt company is now chasing my wife for the over draft amount of £1300. I and paying this within my CCJ I know that it was a joint account but how can the debt company demand the £1300 from my wife when I am paying off the overdraft. This means that this overdraft of £1300 will get back £2600 Is this within the law? Thank you

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Re:Joint Overdraft - simon wiggins 2010-07-26 13:51:01
 
Hello Kevin No creditor can get back more than 100% of what’s owed so they wont ever be chasing £2600 just the original sum but they can chase everyone who is liable simultaneously so yes what they are doing is very much legal and run of the mill in fact. Its just they are taking different approaches with the people liable to repay it.

To explain joint and several liability does not mean when two people owe a debt that each is liable for half but that each in their own right is 100% liable. This means that once the debtors break the contract all parties can be chased for repayment at the creditors discretion. In your case they have taken the CCJ route and you are paying the debt back at arte you can afford as set by the court Make sure that your never ever late Cleared funds must with the creditor or their nominated agent on or before the due date Most of my client pay by standing order or cash two weeks before this to make sure that there court order never become broken Don’t pay by DD as the creditor dictates when and how much is taken so an easy way for a CCJ to be broken or by cheque as they are under no obligation to cash it. Cash of STO is the way to go here because once a CCJ is broken even by a day even if the arrears are made up it remains broken and allows them to go for enforcement such as bailiffs, attachments of income, charging order, locking bank account etc etc so avoid this at all cots.

In the case of your wife they have instructed a Dc agency to chase the debt at this stage and they or the next in the chain will carry on trying to get her to repay this at a rate she can afford as well In the end though your total joint payments cant ever be more than is owed So if she ends up over time paying off say £500 you would repay £800 and the debt would then become satisfied.

I hope this covers your query and good luck

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