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joint loan, one partner signed up to a trust deed, is the other partner liable for the debt? |
Submitted on: 27th Aug 2009 by Non-Member | Total Answers: 1
i have a joint loan with an ex-partner, he signed up to a trust deed for the loan along with other debts not connected with myself. i have been chased for the whole balance of the loan because the creditors say i am liable for the debt. when i asked if i could sign up to a trust deed, i was told that two people cannot sign up to a trust deed for the same loan. i am a resident in scotland, a single parent college student and cannot afford to pay this loan. the ex-partner is also the father of my children and he is in full-time employment(and does not pay maintenance for his children). why am i the one being held solely responsible for this debt?
Re: joint loan, one partner signed up to a trust deed, is ...
Joint and several liability means that you are both liable for the loan.
If one person defaults- through entering a Protected Trust Deed for example - the whole of the debt can fall on the other person (minus what eventually gets paid through the PTD).
Your ex partner is still jointly responsible for the debt but is now protected from his creditors and is paying them back at a rate he can afford. If any of his debts are in joint names - the other party is not protected and can still be chased.
(The same applies in IVAs and Bankruptcy and other procedures.)
I don't see why you can't enter into a Trust deed or a debt management plan yourself assuming you qualify. You could get some Scottish advice about Trust Deeds just to check that there isn't a special rule I don't know about, You should also get some advice from the CSA about maintenance.
I've advised lots of people in your situation on how to enter debt management plans. If you want to discuss your options or I've got the wrong end of the stick please click on my name and contact Debt Advice Foundation.
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