Business partner wont pay share of debt

ebaybaby

Hi all,
DH split from partnership earlier in the year. There was an outstanding debt with the joint business account. DH paid his half, the other partner refusing to pay theirs. Its just under £300. We have been told that DH is still liable for the debt even though his part is cleared. We have no debts and our credit score is 100% good.
Any advice on what to do next would be grateful.

AbbieCadabra

guessing they are using the term 'jointly & severally liable' or similar? was there a partnership agreement in place? perhaps business debt line for advice next?

ebaybaby

Nothing in place :-(
And it's all ended very sourly.

SueC_2

In his position I think I'd be tempted to pay the debt off so my own credit rating etc wasn't adversely affected, and then try and recover it from the ex-partner through the Small Claims Court.

I'm not saying that's the only way to handle it, and I have no idea of the legal position, but I think I would view it as the easiest way to protect my credit rating - which I wouldn't want to lose for the sake of what is a fairly nominal amount.

To be honest, even if I couldn't get the money back from the ex-partner, I'd still pay it off as I wouldn't want to live with the consequences of not doing so. I'd huff and puff about it, but I'd do it, and view it as an expensive lesson learnt.

ebaybaby

I agree SueC. DH is obviously fuming at the moment, but maybe he will come around. Thank you for your advice.

engineer_amy

if there has not been a specific partnership agreement drawn up, then the partnership is governed by The Partnership Act 1980, setting out the powers, rights and responsibilities of each partner, including
All partners are jointly and severally liable for the liabilities incurred by the company. This means that if a debt cannot be paid then the creditor can pursue all the partners individually and one may be forced into the position of paying the whole debt by themselves.
So as mentioned before the creditor could pursue your husband for the remainder of the debt and your husband would have to sue the remaining partner for his half.

Reggie_Rebel

Would it be worth paying the debt to protect your credit score and then pursuing through the small claims court?

pinkshoes

Pay it then slash the partner's tyres.

(Or more sensibly send him a letter before action saying you have had to pay it and he owes you £X for his half which needs paying within 21 days other wise you will take court action).