Joint Debt but only one person CCJ'd

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therealtomo
therealtomo Posts: 1 Newbie
in Loans
My wife and I had a business loan with a high street bank (one with only 4 letters in their name) and we signed as personal guarantors for the loan.

The business closed and we continued to settle the debt. Sadly we fell behind and the bank chased us both until the point where it went to CCJ. However, the bank only CCJ'd myself, even though we were both jointly liable / guarantors and us previously supplying their debt collection Co (Horwich Farrelly) with both sets of income.

In the last few days, they have now added an attachment of earnings order on me, and me alone.

Is this legal ?

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  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    therealtomo wrote: »
    My wife and I had a business loan with a high street bank (one with only 4 letters in their name) and we signed as personal guarantors for the loan.

    The business closed and we continued to settle the debt. Sadly we fell behind and the bank chased us both until the point where it went to CCJ. However, the bank only CCJ'd myself, even though we were both jointly liable / guarantors and us previously supplying their debt collection Co (Horwich Farrelly) with both sets of income.

    In the last few days, they have now added an attachment of earnings order on me, and me alone.

    Is this legal ?


    I believe so, Ill let others correct me if I'm wrong.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    This is what the Money Advice Service says about 'Joint and several liability'
    You might think that when you take out a joint loan or debt with someone else that you’re only responsible for your ‘half’ or share, but that’s not the case.
    By signing a credit agreement (a contract) for a loan or overdraft with someone else, you’re each agreeing to pay off the whole debt...
    Source: https://www.moneyadviceservice.org.uk/en/articles/taking-out-a-joint-debt-or-loan-what-you-need-to-know
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    You are lucky really. At least only one of you has a ccj and is having their earnings reduced. Consider yourselves lucky.
  • boo_star
    boo_star Posts: 3,202 Forumite
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    Ben8282 wrote: »
    You are lucky really. At least only one of you has a ccj and is having their earnings reduced. Consider yourselves lucky.

    This is the best way of looking at it.

    Even if doing this was technically wrong (and I don't believe it is) then you'd get the CCJ set aside, they'd go for a new one in both your names and you'd both have a CCJ instead. Hardly a win.
  • fatbelly
    fatbelly Posts: 20,504 Forumite
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    therealtomo wrote: »
    My wife and I had a business loan with a high street bank (one with only 4 letters in their name) and we signed as personal guarantors for the loan.

    The business closed and we continued to settle the debt. Sadly we fell behind and the bank chased us both until the point where it went to CCJ. However, the bank only CCJ'd myself, even though we were both jointly liable / guarantors and us previously supplying their debt collection Co (Horwich Farrelly) with both sets of income.

    In the last few days, they have now added an attachment of earnings order on me, and me alone.

    Is this legal ?

    Yes, it's the claimant's choice. They can pursue one, or other, or both, for the full amount.
  • FtbDreaming
    FtbDreaming Posts: 1,121 Forumite
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    I dont have an answer but i know what you mean... when the council tax bill comes in its in both our names, but when theyve sent me a threatening court letter (every april because their ridiculous system cant cope with me paying weekly rather than monthly) its always just to me. I think it is incredibly unfair.
    Mortgage started August 2020 £69,700
    Mortgage ends Aug 2050 MFW: Aug 2027 
    Current Balance: £60,200 (59.9% LTV)
    MFW2020 #156 £723.13
    MFW2021 #26 £1184.71
    MFW2022 #11 £197.87
    MFW2023 £785
    MFW 2024 £528.15

    Determined to make it! 
  • boo_star
    boo_star Posts: 3,202 Forumite
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    FtbDreaming wrote: »
    I dont have an answer but i know what you mean... when the council tax bill comes in its in both our names, but when theyve sent me a threatening court letter (every april because their ridiculous system cant cope with me paying weekly rather than monthly) its always just to me. I think it is incredibly unfair.

    Realistically they're only really going to chase the person who they think has the most chance of paying it. And I think most of us who were owed money wouldn't faff around going after both people either.
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