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paul.c
Junior Member
172 Posts |
 Posted - 19 May 2008 : 07:03:00
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| what happens to joint secured loans (secured on property) when only one party to the joint loan is being made bankrupt |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 19 May 2008 : 08:15:46
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Hi Paul,
Welcome to the forum,
When only one party to a joint loan is made Bankrupt then the other party will become solely liable for the whole debt.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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melanie_giles
Senior Member
1191 Posts |
Posted - 19 May 2008 : 08:54:26
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When you borrow monies jointly, you borrow them on what is termed "joint and several liability" which means that technically you both owe all of the debt. In the event of an insolvency of one party, the other one will be responsible for dealing with the creditor directly who will prefer to pursue collection of the debt rather than wait for a dividend to be returned (if one is eventually) from an insolvent estate. This can, unfortunately, often lead to the insolvency of the other partner.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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paul.c
Junior Member
172 Posts |
Posted - 19 May 2008 : 14:09:36
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Hi and thanks for the info. If the party not being made bankrupt can continue to make the regular monthly payments on the secured loan does it continue unchanged?
Kind regards
Paul |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 19 May 2008 : 14:20:23
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Hi Paul,
Yes if the other party continues the agreed monthly payments then this will have no effect to this party with regard to adverse credit
Or as Melanie mentions the creditor taking steps to recover the debt or potential insolvency.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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when only one party to the joint loan is bankrupt
