Joint loan with ex-partner - tips on how to split?

Zed1_2

Hi,

I am in need of some advice...please!!!! I have a joint £25,000 HSBC graduate personal loan with my ex-partner. WE split up Feb 2006, at which time I also decided to un-bury my head and sort out my dire financial circumstances. I now have a DMP with CCCS. Hooray! My ex-partner is not contributing any payments to out joint loan, but has expressed a desire to have the loan split 50:50 between us, which is great. HSBC have said that it can only be done if my half of the joint loan is then amalgamated into a managed loan with my other (considerable) HSBC debts (one other loan, a credit card and an overdraft). They can see from my personal finances that CCCS have sent them that there is no way I would be able to pay the minimum monthly payments that they would require.

Is there any way at all that anyone knows of, that the joint loan can be split? Is there soemthing that I can take to HSBC and say 'look - it can be split because it says so here...it can be done this way, or this way'. Neither myself nor my ex-partner have the credit rating to take out another loan elsewhere to then 'take on' half of the joint loan, plus neither of us really want ANOTHER loan to deal with.

Any help/advice would be very very gratefully received!!

Many thanks!

Rafter

Presumably you have joint and several liability for the joint loan.

The fact you have split is not that relevant because you can take out a joint loan with anyone - doesn't have to be a partner.

If HSBC will be better off and recover more money after the split - more fool them for not accepting your proposal.

However, they will prove reluctant to split any such loan because they still stand to recover all their money if one OR other of your financial situations improve.

There is certianly no legal requirement nor do I believe you have the right to financially disassociate yourself from your ex until the loan is paid off or cancelled.

Sorry I can't be more help.

R.

sevenredpoppies

Hi and sorry to hear about your predicament! I have found myself in a similar state - took out a joint loan in April 2004 and split with my partner in May of the same year. We both opened separate accounts and money was deducted off these each month and put into the joint account to pay for the loan. All was great up until three months ago when he stopped paying it. :mad: I was told at the beginning (when we first split) that if for any reason he stopped payment, then the loan could be signed off and split....................... now I've had a load of conflicting information and not sure whats going to happen.

My ex partner has apparently since been in touch with the bank (Lloyds TSB) and they told him I'd have to go in to get them to send out a proposition form for him to sign, enabling the loan to be split. I went in today and was told this was unlikely as he'd have to take out another loan to pay me the remainder of his half and since he's already defaulted on payments to this and various credit cards, its unlikely he'd be given a loan for £3 let alone £3000.

Since this drama unfolded three months ago all Ihave been given was conflicting information which seems to change from one month to the next. I am currently awaiting an update from the very helpful advisor at the bank. If I ever get anything resolved I'll certainly post it up if its going to help anyone.