Hypothetical question...

missblue1480

Just a bored bankrupt with no money to distract myself with and time on my hands .

So just out of curiosity:

Say a debtor (person A) has a single joint debt with an ex-partner (person . Person A declares BR, therefore the debt falls entirely to the person B.

If, say person A has lots of assets and/or a really substantial IPA and the release of assets and IPA cover all the ORs costs plus for argument's sake 80% of the overall debt.

So the creditor is only 20% down.

However through joint and several liability, at the point of person A's BR, person B became fully liable for the debt. So, despite 80% being paid, could the creditor still chase person B for potentially the full liability at the point of BR, or does person B become liable for only 20%?

In such a scenario, could the creditor theoretically recoup more than their losses?

This does not relate to my situation in any way and I can't imagine many cases where more than the 100% could be recouped but it seems theoretically possible and I'm curious as to how this would work.

Thoughts?

coolcait

Leaving interest to one side...


Debt owed to Creditor Z - £10,000


Person A and Person B are jointly and severally liable for the debt.


Creditor Z has a number of options:


- try to get Person A to pay the full debt
- try to get Person B to pay the full debt
- try to get both Person A and Person B to pay back the full debt between them - whether it's 50/50, 60/40, 70/30 or any other percentage


Creditor Z can't get £10,000 each from Person A and Person B. The total debt is £10,000 - that's the amount that Creditor Z can expect to get back.