My understanding is that a joint debt will transfer to the non bankrupt person. However, if the bankrupt person is paying an IPO how will this affect the value of the joint debt which has been transfered to the non bankrupt party. Can a company pursue the non bankrupt party claim the full amount owing from them as well as getting money from the bankrupt person via an IPO?
IPA/IPO payments are distributed pro-rata to all the creditors.Under joint and several liability, if one party goes BR, then the other is automatically liable for 100% of that debt (less any payments received via the IPA/IPO).
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
Joint debts and IPO payments
Posted - 11 January 2009 : 21:18:54
