Joint Loan

aerich28

I have a joint loan with my now ex-partner. The amount was for £15,750, repayments of £251.41 over 84 months which started in March 2007. Me and my ex-partner separated in Oct 2007 and my ex partner has not paid a penny towards the joint loan since, despite his name being on the agreement (as main applicant!). I think I am right in saying there is nothing I can do about this as we are both liable to pay the full amount and not half each (which sucks considering he sh*t on me!!) My forenames are officially Elizabeth Amanda, however I am known as Amanda, my middle name, so the joint loan agreement has been signed and printed as Amanda Richardson. I am wondering would this invalidate my liability to pay the loan?
Also, not that this is relevant but me and my ex-partner also have a 3 and a half year old daughter who he does not see (his choice) nor does he contribute towards her upkeep. So not only am I paying for his debts aswell as my own I also struggle with providing solely for our daughter. The CSA have been no help in this respect. Me and our daughter moved to my mother's house at the time of our separation and fortunately i do not have to pay her any keep. It has been 2 years now and I am no further forward with my financial situation, I am constantly overdrawn by £1k, I have a £4k credit card and the joint loan to pay for on top providing for myself and my little one. Is there anything I can do to make my situation better? I need my own independence back, not just for myself but for stability for my little girl, but I cannot afford to move out and get my own place with my outgoings the way they are. I'm 26. Please help.

Rafter

aerich,

I stongly suggest you call national debtline and cccs. Given your income and the size of your debts and the 'reasonable living costs your mum could charge you, I think bankruptcy might be a serious option. It is not as daunting as it sounds and will mean that you and your daughter can be financially independent in a few years time, rather than having this big debt hanging over you and your mum having to support you financially.

It will also mean the bank will have to pursue your ex for the full amount of the joint loan too!

R.

iolanthe07

I am wondering would this invalidate my liability to pay the loan?


I shouldn't think so. Your personal circumstances and the appalling attitude of your ex-partner are hardly the bank's fault, so why should it take a hit because of such a trifling matter as the use of your middle name instead of your first name? The responsibilty to pay the loan has very unfairly fallen on you alone, and you need to pursue your ex-partner for his share of this liability.

aerich28

I don't mind paying my half back, but I do think it is unfair that I have to pay his half too when he is the one who has stumped us. I don't know where my ex is to be able to pursue him, but even when I did he made it clear to me he wouldn't be paying any of it. I am worried about my credit rating which is why I continue to pay the loan. I don't want his behaviour to affect my chances of obtaining credit in the future.

Rafter

Totally agree with iolanthe that your signature is not going to get you anywhere in claiming the loan is invalid in some way.

It is unfair - but it is the risk you run when you enter a joint loan agreement that you could end up being responsible for the whole amount.

Your credit rating would definately be damaged if you did default on the loan. You have to work out whether you can realistically repay all your debt in the next 5 years or whether more drastic action (that will prevent you getting credit) will be a faster route to financial freedom.

R.

Ames

Do your circumstances really allow you to afford any credit? Why is your credit rating so important to you? If there's a good reason then fine, but if you're struggling then other things are more important, like giving your daughter a good life.

Sorry if that came across wrong, I didn't mean it to be offensive, just to put things in perspective.

CHR15

If the loan is in Joint names then you are both equally liable to repay.
You seem to staring into a shotgun through either bankruptcy or defaults.

If you default (stop paying) they will surely be forced to chase your other half for the debt. Maybe just give them as many details you have for your Ex's current location and contact details and let them crack on.
I don't suppose they really care at the moment as the payments are happily arriving each month.

If you haven't got the money, they can't have any...simple.

Would the loan get written off through bankruptcy anyway though?? it is in joint names so if you bankrupt yourself, the loan will still be there, and your ex will be chased so it's the same.

Ultimately, your ex needs to have his sorry a$$ dragged back into the fold one way or another.

Ames

Even if you default chances are they'll still chase you and not the ex - they know where you are and that you can afford something towards it, so you're the easiest target.

In bankruptcy you wouldn't have to worry about the loan again, it'd still exist but only for your ex, they wouldn't be allowed to chase you for it.

BigDave81

If the loan was taken out before 2007 it may be worthwhile reading the threads about the loan possibly not being enforcable and you may be able to get out of paying it although your credit will take a hit in the meantime.

aerich28

Thanks everyone, really appreciate your feedback.

Ames my credit rating is important to me because i want to be able to get a mortgage in the future so that when i die i have something to leave for my child or any future children. But maybe bankruptcy is an option because i could get a mortgage maybe in 10years time when the bankruptcy is not listed on my credit file and in the meantime i would be able to sort myself and my daughter out with our own accommodation. But can u go bankrupt while still working? Not sure how it works? Would my car get taken off of me? I need my transport to get my daughter to nursery and myself to work.
Also, does anyone know if I would be able to sue my ex-partner for not paying his half of the loan? That is of course if i manage to find where he is.

Ames

Yes you can go bankrupt while still working. If you need the car for work then they wont take it, or will give you money back to buy another one, it depends on the value of it. There's a bankruptcy board on here who'll be able to give you advice on that.

When I was looking at br I was told I'd be able to get a mortgage in the future, if you're looking at in 10 years I really don't think that'd be a problem.