Loans in joint names

A_lottery_win_would_do

I have a joint loan with my estranged partner. I am aware that if either of us were to stop paying our half the the repayments that the company would go to the other party for the full amount. If he was to do this to me, where do I stand telling the company that I am prepared to pay half of the amount outstanding but once that is paid I won't pay anymore and they would need to contact him for the the rest of the outstanding amount? Many thanks

Tigsteroonie

I don't think you'd 'stand' anywhere legally. Normally loans (and mortgages) that are in joint names are taken out on the basis of you both being 'jointly and severally liable' - i.e. you are both individually liable for the full amount and either of you can be pursued for the repayments.

Thrugelmir

You would be better off allowing the current arrangement to continue.

If your ex defaults then you will have an opportunity to make an offer. Though this will come at the detriment to your credit record.

roonaldo

A_lottery_win_would_do wrote: »

I have a joint loan with my estranged partner. I am aware that if either of us were to stop paying our half the the repayments that the company would go to the other party for the full amount.

No, as its a joint loan you are jointly liable to pay it.

If he was to do this to me, where do I stand telling the company that I am prepared to pay half of the amount outstanding but once that is paid I won't pay anymore and they would need to contact him for the the rest of the outstanding amount? Many thanks

But if you pay half they will chase you for the other half. The payment needs to be made in full regardless of who pays it.

fermi

There is no reason why you could not make a full and final settlement offer (or whatever they prefer to call it) and make a condition of that that you are BOTH released from any liability to pay the remainder. You would need their agreement in very clear terms in writing from them.

However, unless there are overwhelming reasons why they would think that otherwise they would never recover the debt from either of you, or that it would not be worth selling on to a debt purchaser/collector instead, then it is VERY VERY unlikely that they would agree to such a proposal.

GingerBob_3

Generally speaking, you should avoid joint financial arrangements if at all possible. However, most people would want a joint mortgage, and unfortunately that knackers the job; you are then "financially linked", as they say.

Related to this, my council tax bill comes addressed to me and my wife, but I never told the council I wanted it this way. I sometimes wonder if I could insist that only one of us is liable for this theft.

Tixy

GingerBob wrote: »

Related to this, my council tax bill comes addressed to me and my wife, but I never told the council I wanted it this way. I sometimes wonder if I could insist that only one of us is liable for this theft.

Even if only one of you were named on the bill then a couple ar always considered ultimately jointly liable. See here http://www.adviceguide.org.uk/england/tax_e/tax_council_tax_ew/council_tax.htm#h_who_has_to_pay_council_tax

[Couples living together will both be jointly and severally liable, even if there is only one name on the bill. This applies whether the couple is married, cohabiting or in a civil partnership. No one is under an obligation to make a payment until they are issued with a bill in their name or, if they are jointly and severally liable, with a joint taxpayers' notice.

That said having your council tax bill in joint names does not make you financially associated on your credit files.

A_lottery_win_would_do

Thank you all for your responses. It hasn't come to it yet but I was just wondering what the chances would be of me doing that if it did, and it's as I thought, slim to zero! Hindsight is a wonderful thing...

Thanks again all

SuperHan

GingerBob wrote: »

Related to this, my council tax bill comes addressed to me and my wife, but I never told the council I wanted it this way. I sometimes wonder if I could insist that only one of us is liable for this theft.

I once lived with someone unemployed and paid all of the bills. However council tax would always bill in his name, no matter how much I protested, and they always kicked up a fuss if I tried to query anything to do with the account as bills were in his name. Absolute nonsense!