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Joint loan agreements

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clairew37
clairew37 Posts: 19 Forumite
Part of the Furniture 10 Posts
If 2 people (not married) take out a joint credit agreement and 1 person declares bankruptcy is the other person liable for the whole debt or half?

Contributions appreciated :)

Comments

  • fwor
    fwor Posts: 6,862 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Without seeing the agreement (which I guess could say anything), it would be safe to assume that a joint agreement will be "joint and several". The remaining party would be liable for the whole debt, not half.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hi Claire


    Yes, as fwor states you can safely assume that if A declares themselves bankrupt, B will still be liable for the entire balance on such an agreement. Their marital status would be irrelevant, for the record. In theory, any two people could take out a joint agreement - friends, relatives etc.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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