Separating a joint DMP

**laura**

I am in a joint DMP with my husband. For various reasons im considering splitting this. How would it work? With joint debts specifically? I assume I could just ring them and explain that I want to go it alone, provide my income and share of the expenses and then make the payment. But our main creditor is a very big joint loan - I'm wondering how this would work?

sourcrates

Hi,

Are you self managed, or with one of the free debt charities ?

Let's assume it's the latter, you simply ring them, and arrange a seperate DMP just for yourself, ask to be removed from the joint one.

For the joint debts, you simply pay seperatly from you own DMP, so the creditor will recieve two payments, to the same value as before, instead of just the one.

**laura**

Thank you. I think I'll do that then.

theoretica

That would work if the two of you continue to make the same payments - if you are hoping for a world where you pay off half the joint debt and then your score is clear and the lender only chases your husband that is very unlikely.

January2015

In the case of the joint loan you will both have joint and several liability. Essentially what this means is that you are both individually liable for the full value of the remaining debt balance. This is in case one of you doesn't/cannot pay, the other one will be chased to pay. Basically lenders don't care which of you can/cannot pay, if one can/will pay they will get their money from that person. The agreement you will have signed gives them this power/right.

Separating the joint loan for separate DMP purposes will work if, and whilst, you both agree to pay. However, if one of you does not the other will end up paying until the balance is cleared. This does not mean DMP payment to that lender will increase, because on a DMP you pay what you can afford, not what the creditor wants. Therefore if one partner ceases payment to the joint loan the other partner will just have to pay for twice as long (or longer if interest still being added).