Will there be a bounce back loan in my name?

davidrob

Hello

I am looking for some advice.

A few years ago I opened a joint business bank account with a friend as we were doing some work together and it made sense to be paid together. We then both split the money 50/50 every month into our own personal accounts and from a tax perspective we were both self employed, each doing our own tax returns.

We were very close to entering a proper and official partnership but my personal life got a bit difficult and I couldn't commit to the same amount of time he could.  He continued with the business (and the bank account) and I went off and did my own thing (got a PAYE job).

Now I accept this next bit is my own fault and I should have done something about it - but I didn't.  I never got my name removed from the business account. So as far as the account is concerned, I'm still listed on it. 

Fast forward 3 years and I started getting texts from the RBS about my Bounce back loan.  I thought that was a bit strange so spoke to the guy and right enough, he took a bounce back loan.

I trust him, he is a friend and I don't believe for a second there is anything sketchy. The only thing we've both done wrong is be a bit lax about removing my name from some stuff.

But my fear is the following:
Is this loan half in my name? Can he single handedly take out the loan that I am liable for half of without my signature?
If things got bad - could I claim I had nothing to do with it and have no liability - or is my name being on the business account enough that I do have liability?
What do I need to do to fix it? I'm going to speak with him to get my name removed from the account, but presumably if the loan is now activated, even if I remove the name from the account, I would still be attached to the loan in some form.

Like I said, I don't believe there's anything purposely dodgy here. But I'm worried this will come to haunt me months or years down the line.

Any advice greatly appreciated. 

Yahoo_Mail

I'm not sure whether the loan would be in joint names (my gut says it won't be unless he's lied and applied in both your names) but you need to get your name removed from this account ASAP.  Even if he can't apply for joint loans without your permission he absolutely can get an overdraft on the account without your express permission, just as with a joint personal account.

You really don't want to be being chased for that if his business takes a turn for the worse.

macman

One point: if you are liable, then it's not for half the loan, but all of it. Jointly and severally liable.
You already know this, but it was incredibly lax to remain on a joint account if you were no longer involved in the business.  You would be liable for any and all debt run up on that account.
However, I would have thought that a BBL on a joint account would require both sigs.

Grumpy_chap

How was the joint business bank account structured?  Was that for the unincorporated partnership?  If so, the BBLS may be in the name of the unincorporated partnership.
The easiest thing is probably for the OP to ask the bank what name(s) the BBLS is in.  Of course, if it is not in the OP's name (or the OP's partnership if that exists), the bank might not tell the OP, but that will be sufficient for the OP.
The OP is wise to use this as a prompt to break financial ties with the former business partner.