Fast Debt Help | Joint Debts And Partners

Blog Home > Debt Agreements > Joint Debts And Partners

Joint Debts And Partners

11/8/2017 2:25:31 PM Debt Agreements Joint Debts and Partners

Many people come to Fast Debt Help, who have joint debts with a partner.

First and foremost you must realise that if the debt is joint, each person will be treated as if they owe the total debt. So if one person does not, or cannot pay, the creditor is entitled to chase the other person for the full amount of the debt.

This brings some stressful scenarios for people who have separated. Be under no illusion that if you have a joint loan, even if you have an agreement that your ex partner will pay it and they don't, you will be chased for the total amount owing.

However, this debt can still be put in a debt agreement but will handle just that one persons obligations. The other person on the loan does not have to agree to this. They will have to handle their obligation separately. In Debt Agreements joint debts will always be shown as the full amount.

Because of this, where both partners are going into Debt Agreements and there is a considerable amount of Joint Debt, it may be more cost effective to look at an informal arrangement.

Generally speaking Debt Agreements are a more cost effective way to handle unsecured Debts, but the problem is, you cannot offer a Joint Debt Agreement. Where there is a large proportion of Joint Debts or it is the only debt, you can offer a Joint Informal Arrangement. In this case it can be a better option for all concerned.

Other than Joint Debts, an Individuals credit behaviour is their own. Your partners bad payment history will not affect your credit history. If you do a Debt Agreement or even go Bankrupt this does not affect your partners credit rating. The finance world recognises you as a unique individual.

So what do you do if your partner does not pay a joint debt? If you do nothing it will affect your Credit Rating. One option is to pay the minimum payments on this debt till you can rectify the situation. This will preserve your credit rating. If you are not in a position to do this, first talk to the Creditor, explaining the situation and try to come to a compromise. You can always contact Fast Debt Help to get the best way forward.

What do you do if your partner goes into a debt agreement and the Creditor chases you?

If you make the minimum payment the creditor can do nothing but must stop taking the payment once the full amount has been paid by you and the money they get from the debt agreement.

If your partner is a client of ours we would try and negotiate a payment plan for the other party to balance the debt.

joint debts
Share this Post:

Related Posts:

Blog Single

Case Study: When Heart Problems Lead to Tax Problems

The Situation John had a small business as a truck driver and courier. He has a Partner who doesn't earn a lot of money. Unfortunately due to stress and over work John had a heart attack. He was...

Newest Blogs

Informal Arrangements

What is an Informal Arrangement?

Basically speaking, it is an agreement between you a ... read more

3/20/2018 2:02:42 PM

Debt Solutions


Debt Agreement

Debt Agreements (also known as Part IX Debt Agreements) is a debt solution suitable for many peop ... read more

3/20/2018 10:33:44 AM

Debt Solutions


Case Study: When Heart Problems Lead to Tax Problems

The Situation

John had a small business as a truck driver and courier. ... read more

11/8/2017 2:35:14 PM

Debt Agreements


Case Study: Saving James Banking Job

James has Credit Card and Personal Debt but works in the banking Industry. If James was to do a P ... read more

11/8/2017 2:31:50 PM

Informal Arrangement


Joint Debts and Partners

Many people come to Fast Debt Help, who have joint debts with a partner.

First and fore ... read more

11/8/2017 2:25:31 PM

Debt Agreements


FREE Phone Advice

FREE Phone Advice

Fast Debt Help

Our other sites -
Money Buckets
Starlight Home Loans

Contact

1800 825 010

[email protected]

PO Box 6100, Kincumber, NSW, 2251

Our Credentials

© Copyright 2019 Fast Debt Help - All rights reserved.

NEW SOUTH WALES | Sydney, Central Coast, Newcastle, Wollongong