If you fall behind payments or when either of you has arrears on a joint debt, actions taken by the creditors to recover the debt will affect you both.
Joint debts imply joint obligation and accountability, and it’s for this understanding that you must consider a sound judgment before agreeing with joint debts. If one person failed to compensate debt payments on a joint debt, the other person will have to take the load alone, making payments unaffordable for the person taking the responsibility.
Arrangement Over Joint Debts
In many circumstances, it’s wiser to have a formal arrangement with the other person on how both of you can pay off your debts. Both of you should be on the same track in understanding how your debts can lead to possible bankruptcy affecting your job, your home, and your entire life when you cannot make any payments.
There might certain circumstances that you did not expect to happen. For instance, when you’ve separated on bad terms, putting an arrangement will shun either of you from ignoring your debts or leaving the entire obligation to the other person alone. When you’re the only one contributing money towards debt, reach out to the creditor and ask debt advice on the alternatives available for you.
Can my creditor compel my ex-partner in paying debts?
When your ex-partner refuses to pay their share in paying for a joint debt, your creditor or bank cannot force let them pay. However, they can contact the person and request for payment.
They’ll likely to expect full payment from you as well. If you can’t pay the amount in a joint debt, you will be both liable for the consequences. This is regardless of whether who spent the money borrowed. This process is under joint and severe liability.
What should I do if my ex-partner took out credit using my name?
In case, your ex-partner took credit under your name without your consent or permission, this can be classified under fraud. This happens when the person applies as you or add your name o a joint debt. When this happens, you can report it to the authority or police.
If you think that the debt was obtained through fraud, reporting it to the police would be your first initiative. If determined an offense of criminal fraud, the prosecutors may start criminal proceedings. However, this may nor be certain in some cases. As an alternative, you can forward it to a civil court and ask the assistance of a solicitor in pursuing the case.
Moreover, pursuing fraud against your ex-partner can be hard due to several factors. For instance, in the case of an abusive relationship, reporting fraud might boils back in repercussions against you, your family, or property. In the part of your creditors, except they examine your case and decide the credit was indeed fraudulent, you’re still responsible for the debt since it’s under your name.
Generally, you must try to communicate with the creditor and heck if they have certain measures in place to assist people in terms of debt from relationships that did not end well or might have an abusive history.
Can I consider court action against my ex-partner?
There are known cases of individuals pursuing matters to court against their ex-partners and ended up winning the case putting them behind bars for the credit they’ve taken out. If you have messages in emails, SMS, or pieces of evidence showing that your ex-partner admits they owe you money, you can take matters to the small claims court.
Besides, if you had an agreement detailing the money you both will contribute each month toward debt payments, the Court is likely to favor your case. So, if either one missed payments or neglect debt responsibilities, you can take this to the Court for as long as you have a written agreement regarding debt payments.
Before you take court actions, you have to seek help from a solicitor. This way you’ll know if the case can progress when pursued. You may also have to consider the amount that you wish to recover. Taking your ex-partner to court might be costly; instead, you can try to check for options to recover the money.
Joint Debts and Death
When a person passed away, leaving you with unsecured joint debt, you will be solely accountable for the money owed. This means you will have to pay for the entire debt.
Should you need to find out more about how the passing of loved ones affects you financially, read our post regarding bereavement and death to unravel the information that you need to know.