Joint + Several Loan

liquidkristal

Ok, so I am a signatory on a joint and several loan (business one) for a company that has gone bankrupt.

Both myself and the other signatory on the loan where in talks with the loan company to reach a settlement, now I find out that the other party has reached an "Agreement" with the loan company where he has paid them 1/2 the amount cash (got a loan out to do that as they were threatening to place a charge order on his home), now where do I stand as technically the loan amount has changed, am I liable for the full amount or 1/2? as usually they will chase for full payment from all parties.

any help is much appreciated.

Emmzi

you are liable for the full amount owing. If that is half of the original amount then that (plus charges and interest etc) is what they will go after you for.

liquidkristal

ok, that makes sense.. wil I require revised paperwork as the only agreement I have is for a joint and several for the full amount

Emmzi

only if you are agreeing a new loan in your name only; which they may not allow (although your partner has an "agreement" it may not be as firm as he thinks it is and they may want to leave a loan in his name also until you have paid back too. depends what he has in writing)