Debts Incurred By Partner

BaldEagle

I met up with a friend of mine today. Basically he's in the s**t with credit card debts and asked me for advice on BR as he knew that I was going through the process myself. I was able to help him with most of his questions, thanks to what I've picked up on this forum, but couldn't help him with this so any advice would be appreciated.

The vast majority of his debts were from a previous relationship where his partner racked up large debts on his credit cards. Long story short, they split up and he hasn't had any contact with her in years.

He's been paying off what he can, when he can but it's getting to the point where he's considering BR as an option.

I tried to establish on what basis the cards were held (i.e. jointly held or she just signatory rights) but, by this point, he was in tears so didn't push it. From what he'd alluded to previously, my feeling is that the accounts were in his name and he'd added her as a signatory.

If this is the case, is he solely responsible for the debts or is it a shared debt? Is there any way of proving that she was the one who racked up the debt and not him?

mo786uk

If it is in his name it his debt

credit cards usually have a single account holder with extra cardhodlers - but one person is usually repsonsible for everything

can he apply for a copy of the agreement tosee who is liable?

BaldEagle

I've advised him to get all his paperwork together, including all the original agreements, and ring CCCS on Monday. My feeling is, though, that she was just an extra card holder. AFAIK, they didn't have a joint bank account and she stayed - rent free - at his place.

I told him at the time she was taking him for a mug but, needless to say, it wasn't appreciated. Love is blind and all that...Mind you, I didn't know about this part of the deal

NeverAgain_2

He is responsible for the debt.

Even if he could prove the ex is jointly liable, which I doubt, he is still responsible for the lot of it.

Proving her liability assists the creditors because it gives them an additional person to chase for the money.

It would assist him if she was prepared to pay some of it, but given he's not heard from her in years, that's very unlikely.

alastairq

If your friend is/was the primary cardholder....then he is responsible for the debt.
This is regardless of what other names hold cards with the same account number.

At the time, having one account, but with two names on it appears convenient, and is encouraged by CC co's as it creates more spending.

However, the primary account holder is the person with full responsibility for that account.

This is where 'trust' comes into a relationship...

one 'trusts' the other party not to go mad...or, be honest at least about how much has been added....or even, what has been paid?

I speak from similar experience..I 'thought' I had it all sorted and manageable..then BAM!!.... a shed-load piled on top.

Thus, the only solution became BR, and all that goes with it.

dojoman

As the others have already said, unfortunately the debt is your friends as his wife was just an additional card holder.

BaldEagle

Thanks for the feedback, folks. I had a horrible feeling that would be the case.

NewStart09

I am sorry but I have to disagree with what everyone has said on this forum.

I was unknowlngly, a joint holder on more than one cc that my now ex husband had me listed on, when 'we' went to the insolvency accountant, I was told that I was jointly responsible for the debt as my name was listed on the account.

It did not matter that he was the primary cc holder, she informed me that the baliffs would chase me for the debt if he refused to pay.

The only reason I had to be declared bankrupt was due my name being listed on his accounts (he owed over £50k), accounts I did not even know existed. When I later asked him how he put me on the accounts, he said he simply answered the questions over the phone when he applied for the account, he told them he was married, told them my name, where I worked, how much I earned, and they approved the cards and sent them out in the post, I never signed anything. (by the way I never collected the post either, as I worked very long hours and was never there when it arrived).

I would strongly advise your friend to go and speak with someone, if this person has been removed from the account, than yes, your friend would be solely responsible.

Hope everything works out for your friend....:)

NewStart09

alastairq

I was unknowlngly, a joint holder on more than one cc that my now ex husband had me listed on, when 'we' went to the insolvency accountant, I was told that I was jointly responsible for the debt as my name was listed on the account.

It did not matter that he was the primary cc holder, she informed me that the baliffs would chase me for the debt if he refused to pay.

This is contrary to the information I received from both my credit card creditors, and the CAB .

Also, bailiffs would only be involved if a CCJ had been ignored, and the creditor had returned to Court.

All my CC's had my XOH as an additional card holder....however, there was but one account number for each card, and the statements came but to one person, me.

There is a difference between jointly-held financial accounts...and accounts where additional parties are included as named signatories.

Otherwise, employees using company-supplied credit cards would find themselves liable if the employer defaults?

debt_doctor

NewStart09 wrote: »

I am sorry but I have to disagree with what everyone has said on this forum.

I was unknowlngly, a joint holder on more than one cc that my now ex husband had me listed on, when 'we' went to the insolvency accountant, I was told that I was jointly responsible for the debt as my name was listed on the account.

It did not matter that he was the primary cc holder, she informed me that the baliffs would chase me for the debt if he refused to pay.

The only reason I had to be declared bankrupt was due my name being listed on his accounts (he owed over £50k), accounts I did not even know existed. When I later asked him how he put me on the accounts, he said he simply answered the questions over the phone when he applied for the account, he told them he was married, told them my name, where I worked, how much I earned, and they approved the cards and sent them out in the post, I never signed anything. (by the way I never collected the post either, as I worked very long hours and was never there when it arrived).

I would strongly advise your friend to go and speak with someone, if this person has been removed from the account, than yes, your friend would be solely responsible.

Hope everything works out for your friend....:)

NewStart09

Hi,

certainly in England and Wales, the situation is as described by all the other posters. A second card holder is not liable for the account (unlike, of course, joint borrowers of a loan, where they are joint and severally liable.

In your case I think you have either been;

1) poorly advised and were never liable

or

2) added as a liable joint borrower without your knowledge, which is fraud, therefore your liability would be challenged (and the failure of the lender to do proper checks)

DD

debtinfo

totally agree with alastair, i have only ever seen personal credit cards with one person liable, the other named user is not liable