A reader asked:
“I had a joint loan, now sold off to a debt collector. I have been chased by numerous debt agencies for a few years now. The debt collectors have been chasing me solely and causing masses of stress when they should have been splitting the debt and chasing my ex partner as well. I think I have been very unfairly treated!”
This is a very common problem. Lots of people think that if they have a debt in joint names, they only owe half the money each, but often this is wrong. You need to know the situation for the different types of debt – and what your options are after you split up if your ex isn’t paying “their share”.
First an important legal term:
Joint and several liability
If there is “joint and several liability” for a debt, all the people included are each responsible for the whole amount of the debt. This applies even if you have an agreement with the other person that you will each pay half.
It means that the creditor can chase either of you – or both of you – for the debt if it isn’t paid on time. If the debt is for £1,000 and you “pay your £500” then it is very likely that the debt collector will carry on chasing you and your ex for the remaining £500.
Types of debt and bills
The following is a summary of different sorts of debts and bills, looking at who has to pay how much when a couple splits up or a house share arrangement ends:
- Unsecured loans You will both be jointly and severally liable for the whole debt. It was one of these loans in the query above, so unfortunately the answer was that even though it feels very unfair if debt collector only pursues one person, legally they are allowed to do this.
- Mortgages and other secured loans These too will be “joint and several liability”. They can often be the hardest type of problem to deal with if you split up, because even if the two of you are agreed that X should have the house and the mortgage, the lender may refuse to take Y’s name off the mortgage.
- Credit cards These are only in one person’s name – your ex may have had a card on your account, but legally you are responsible for repaying everything on it.
- Overdraft You are both jointly and severally liable for an overdraft on a joint bank account
- Council tax bills If you are married, or living together as though married, then you are both jointly and severally liable, even if the bill was only issued in the name of one of you. If this was a house share, if one of you owns the house or is the named tenant, they are liable. If you were all named tenants, then you are jointly and severally liable so you can all be chased for the full amount.
- Electricity & gas bills The person named on the bill is responsible for paying it. If more than one person is named on the bill, they are jointly and severally liable. If a named person leaves the property they are responsible for the usage up to that point, but not for future usage.
- Water bills Adults living in a property are jointly responsible for paying water and sewage charges, even if only one person’s name is on the bill. If the named person leaves the property, the water company is likely to chase the person who still lives there for previous debts as well as future bills.
- Tax credits overpayments Legally a tax credit claim for a couple is a joint claim and you are both liable for any overpayment. However HMRC will usually accept that a tax credits overpayment can be treated as though each of you owes half of the amount.
The above covers the most common cases – there are lots of complications and it doesn’t cover unrelated issues such whether the landlord or tenants should be paying bills. If you need advice on your situation, phone National Debtline or go to your local Citizens Advice.
Try to minimise joint debt problems
Your top priority has to be stopping any problems getting worse by ending joint financial relationships as soon as possible:
- get a card on your credit account that is used by your ex cancelled;
- change any pin numbers and passwords, including online things such as a Paypal account – of course this shouldn’t be needed, but better safe than sorry!
- inform the local authority council tax who has moved out. (If only one adult is left they should get a 25% single person discount);
- inform utility companies and, if possible, take meter readings;
- inform HMRC, DWP and local authority where there are any benefit claims (this applies even if a claim isn’t joint as one of you leaving is usually a “change in circumstances”.
If the split is amicable:
- it is still best to try to separate all your account and credit records, see How to separate your finances when you split up for details;
- talk about who is morally responsible for each debt as well as who is legally responsible;
- top priority may be a rental deposit for the person moving out, but after that clearing joint debts should probably be done as fast as possible;
- consider family mediation if things are complicated.
Even with amicable splits there are often big money problems as the costs of living separately are normally much more than living together, so debts that were previously manageable may no longer be.
“It’s not fair – what can I do?”
If the legal liability feels very unfair on you, there may be little that you can do about it:
- you took out a loan for your partner but they now can’t afford to make the repayments… although in theory you may be able to take legal action against them, if they have no money there is absolutely no point;
- in a flatshare that has ended, you all gave your share of the council tax to one person, but the council is saying the bills were never paid and no one is in touch with the person any longer;
- you paid for all the food and clothes for the children out of your part-time earnings, now HMRC says there is a big tax credits overpayment and you have to repay half but it all went to your ex.
If there is joint liability for the debt and the other person(s) don’t seem to be paying their share and are not being chased by the creditor, then you could pass on contact details for them to the creditor if you know them. If this doesn’t work after a while put in a formal written complaint to the creditor that the other joint debtors are being ignored. This is more likely to work if you can also show that you cannot afford to repay the debt within a reasonable timescale.
Another option that can occasionally work is offering half “in full and final settlement” if the creditor will agree in writing not to pursue you for the remainder of the debt and not to sell the debt to a debt collector as a joint debt. Again this is more likely to be accepted if you can’t afford to pay anything and the money is coming from someone else (a relative perhaps?) who is helping you.
Could a Debt Relief Order help you?
Can you sue someone who owes you money?
De-link financially from your ex
kirsty says
hi im hoping someone can help
i used to have a joint halifax bank account with an ex parter approx 5 years ago that went into default after we split as he went over the overdraft then due to charges added he couldnt afford the repayment, he says he had my name removed from the account as i had no access to it, but on my credit report it is showing this default still. Also my report is saying i have no associates, does this means the default account is showing as just in my name? otherwise wouldnt my ex still be an associate to my credit report with it been a joint account? im confused by this as it seems to be having to influence on his credit but showing as a negative on my report, can i get this removed from my credit report?
Sara (Debt Camel) says
Oh dear, this is why you need to make sure joint accounts are closed when you seperate. If your ex says he had your name removed then he either ignored the reply for the bank saying that they needed you to confirm this, or that it wasn’t possible because of the overdraft, or he is simply lying as he never did anything :(
At this point it is unlikely you can do anything to get the default removed. One exception, if you left the relationship because of abuse then it may be possible to get the bank to write off the debt, if you think this could apply, go to your local Citizens Advice and ask for their help with this.
The good news is that if the default was 5 years ago, it will be dropping off your credit record soon. The bad news is the debt still exists even when it no longer shows.
Ash M says
Hi new to the site and I was wondering if anyone could help.
My partner used to be on JSA years ago with his ex.He was main claimant with her as named claimant.They got several budgeting loans and for some reason they were never taken off. He has been split from her for approx 4 years and has been put onto ESA after being made redundant,though they have messed his claim up and he’s had no money for over 6 weeks and so they advised to apply for a budgeting loan,which he did.However he has been turned down,as they are saying he is due them over £1400!!He told them it was a joint claim,so surely it is only half that amount he is liable for, yet they are refusing to go after his ex for half,even though they know where she lives etc. so refusing him any help.Is this right?
My sis split with her partner and the DWP went after him for half the loan payments so why can’t they go after my partners ex?
We were hoping at some point to live together but tbh I’ll be damned if I’m paying or will be liable for debt he got into with his ex (I too am on ESA group Support)
Many thanks for any help/advice
Sara (Debt Camel) says
I suggest he goes to his local Citizens Advice and they will be able to advise further on this and on his general benefits situation – it may be that he should apply for a Short Term benefits Advance, not a budgetting loan anyway,
Ash M says
Hi thanks for your reply.
I have advised him to go to CAB and hes going to call them to make appt. As for the benefits advance. Well 3 times now hes been told he will get his esa on a friday (today being the day yet again) just called as no payment again and told his pay day is Tuesday!And refused point blank to put his request for an advance through to the Jobcentre. Absolutely ridiculous the amount of times they change their stories etc..it dejavu as i had all the same probs :(
Makes me laugh to as he suffers very bad depression for various reasons and other health conditions yet they are causing him more stress, which is having a knock on effect on his health…argh…anyway thanks for your help
Dave Morris says
Hi, I have a joint debt of £8000 that I am the only one paying back after a divorce – the debt is coming down towards the halfway mark and feel that as I have paid my share she should take over payments. looking online it appears that both of us have jointly to pay the full amount so if I am paying then she doesnt have too – this to me is morally wrong but is there anyway I can sort this?
Sara (Debt Camel) says
What were the terms of your divorce? Does she have any money to repay this debt?
Dave Morris says
It was just a straight split with no money involved so as far as I know my debts are mine and hers hers – she is in full time employment
Sara (Debt Camel) says
probably time to have an adult conversation with her. If the debt isn’t repaid, both of your credit ratings will suffer.
Tanya Ferrell says
Hi I broke up with my ex boyfriend and now selling the house we brought together. I put in 20k more deposit then him and I have a loan in my name off 25k which was for a conservatory, can I claim more money or get him to pay half the loan with the proceeds of the house? And claim my amount of deposit I put it? Also how much would it cost to take this too court?
Thanks for you help
Sara (Debt Camel) says
What you are suggesting sounds sensible, however there may be other factors that need to be taken into account. I strongly suggest family mediation as a better way of approaching this issue rather than the courts.
Tanya says
Thanks for your quick response and help. Would i be the one who would lose out more if it went to court ? How much would it cost if it went to court .. a rough ballpark figure? Hope you can help :)
Sara (Debt Camel) says
I’m sorry but I don’t know enough about your situation to say anything useful. You could go and talk to your local Citizens Advice or a Law Centre. Or a solicitor. But mediation is, as I said, usually preferable to going to court.
Joan says
Hi
my partner is being chased for tax credit overpayments that were made after he and his ex split and that were paid directly to her bank account after he had left the property. HMRC are saying he is still liable even though he never physically received the payment or any benefit from it.
Sara (Debt Camel) says
Does this debt relate to the the last tax year when he was living with his ex? Did he inform HMRC that they had split up?
Louise says
Hi,
I’ve received a debt collector letter about tax credits. I paid my half over 2 years ago, so the half that is left is my ex’s. But they are writing to me. Any ideas what to do?
Sara (Debt Camel) says
Contact HMRC (probably the debt management section) and explain the situation. If that doesn’t resolve it, go to your local Citizens Advice for help.
Helen says
Myself and my ex husband had arrears on rent in a joint tenancy my question is we talked about offering a full and final settlement to clear but he sent from his solicitor if they accept his full and final settlement does this mean I owe the rest or would that be it for the debt ?
Sara (Debt Camel) says
That will probably depend on the wording of his offer and their acceptance. Sorry but you are going to have to know the details!
Eleri says
Hi, I spilt up with my ex 3 years ago and we had a joint bank account. Once we split up I gave him my card back. I have had a letter from a debt collector telling me they are sending a debt collector to call at my house. I am very reluctant to reply to the debt collectors as I am currently still paying off his debts that he left me with. Can I say to them that I am unwilling to pay until my ex starts paying too? He is earing a considerably more than me and I don’t want to be left paying off all of this debt too.
Sara (Debt Camel) says
Unfortunately you are both fully liable for the joint debt. You should have insisted the account was closed :(
I’m not sure how much debt you are paying off, but I think it would be useful for you to talk to a debt adviser about your options. See https://debtcamel.co.uk/more-information/where-to-get-help/ which has a list of good places based on where you live and the type of problem you have.
PS it’s very unlikely a debt collector will actually call. But it’s still sensible to deal with this debt.
V Graham says
I’ve just been looking through my credit report and have realised I am still financially linked to an ex partner. I have downloaded the forms to dissociate with him but the forms require his current address. I have no way of contacting him and even if I did, I doubt he would be happy to tell me! Is it possible to put address unknown in this section and still receive the dissociation?
Sara (Debt Camel) says
I don’t know – I will find out and get back to you!
Sara (Debt Camel) says
Yes you can put down “address unknown”. Putting in your ex’s address will make the disassociation a bit faster (I guess it’s easier for them to check with an address) but it will still work if you don’t know his address/
wh says
Hi
I split up with my ex when our son was 3 he is now 8.
HMRC are now chasing me for overpayment of tax credits. They say I was paid over £400 too much which I’m happy to repay. They have also said that my ex partner was receiving £70 per week tax credits direct into his account (that I did not know anything about) and there was an overpayment of approx. £2,500 to him. They have said I have to pay this back as it was a joint claim. I have spoken to my ex and he has no intention of paying anything. HMRC made me set up a DD there and then on the phone for repayment – they said if I didn’t a Debt Collector would be at my door in 24 hours. I am in the middle of applying for a mortgage with my new partner and was terrified that this would go against me so agreed to £50 per month. should I have to pay back my exes debt?
Sara (Debt Camel) says
I suggest you go to your local Citizens Advice and ask about this.
Natalie G says
My partner and his ex have a joint ccj he’s paying his half she’s not is there anyway of going back to court to split this so he still pays his half and if she doesn’t they chase her not both?
Sara (Debt Camel) says
Talk to National Debtline (0808 808 4000) to see if there is an option to go back to court – it may depend on what the CCJ was for.
Elizabeth Langford says
Hi,
When me and my partner split up in 2010 we sold our house for which we had a joint martgage and had negative equity on it of 39000. We made an agreement with Northern Rock to pay the shortfall back at £50 each a month. This I am still paying to date. I have not had any contact with my ex partner for several years, until recently. He told me he went into an IVA in 2012 and Northern Rock (NRAM) was listed as a debtor. Then in May 2017 when the IVA was 5 years old, all of his debtors ceased his liability for the debts to them so he did not pay anymore. Is this fair that I am still paying. I have not done an IVA or anything similar. He is a policeman so on a same salary as me. Please advise. Thanks
Sara (Debt Camel) says
It sounds as though his IVA has completed. In that case he has no further liability for this and you now owe the lot.
Is it fair? Obviously not, but it’s the way things work. You need some advice on what your options are now in 2017. It is a pity you didn’t take debt advice back in 2010, if you had this would all be ancient history, but don’t let that stop you from getting advice now…
That debt is never going to go away, you probably need to choose between bankruptcy and an IVA. See https://debtcamel.co.uk/hard-choices/iva-vs-bankrutcy/. An IVA is not better for your credit record or future chance of a mortgage than bankruptcy.
Penny Harding says
Hi,
My ex partner is self employed & although I continually suggested that he/we put money aside for the Tax bill (to prevent a big 1 off payment) he never did. Now we have split up he is asking me for half of tax bill due Jan 2019 & 1 due Jan 2020.
His argument is that because most of his earnings went into a joint account I benefitted form the income so should share the costs.
Is he legally correct?
Thanks
Sara (Debt Camel) says
Legally? It’s his tax liability not yours. Could he sue you for half of this – extremely doubtful. Morally? That’s up to you. I do suggest that joint account needs to be closed asap.
Heather Lindon says
My ex partner and i have an outstanding water bill for £1000 from several years ago before we split. The water company have taken it to court and we are both liable for the bill. I have set up and payment plan to pay off half the bill within a year and he agreed to do the same but has not done so. Can I get the bill split so I am only responsible for my half or what should I do please? Thanks.
Sara (Debt Camel) says
You can ask the Water Company but they may not agree to have the bill split. If they don’t, you could consider suing your ex, but you would have to be sure that he really could afford to pay this.
Heather Lindon says
The water company say how we sort it is our responsibility and they don’t want to get involved in a civil matter and if I want it split it will need to be a legal action. I don’t know what to do?
Jenni says
My partner was added to his ex wife’s mortgage when they were married when he left he left the house to her and the kids however she then stopped paying the mortgage and moved out it was the repossessed and there is £13,000 left owing however she has always said it was not his house as she originally bought it on her own what is our best option on getting rid of this debt bankruptcy or an Iva?
Sara (Debt Camel) says
Does your partner have other debts as well? What is his financial position like apart from this house repossession debt?
Andrew green says
My partner has left me with a £1200 gas electricity bill what do I do And with joint tenants
Sara (Debt Camel) says
Are yiu saying you were Joint tenants? Were you left with any other bills? Howard you managing paying all the bills on your own now?
Wendy says
My partner and I were living together we had applied for rent benefit
It was a very difficult relationship he was in and out of work constantly we eventually split after 10 years we’ll he had affair so was really bad time. I let the rent know he was not living at the address anymore A few weeks later had a 3,000 for overpayment of rent benefit which was a joint claim. I am paying this back but as it was joint claim shouldn’t he be paying half please help
Sara (Debt Camel) says
This was housing benefit? The overpayment, did it happen before or after you told them you had Moved out? If it was after, then talk to your local Citizens Advice about whether this can be challenged.
But to answer your question, although it would be fairer to split the debt, legally they are allowed to ask you to repay it all.
If you have other problem debts, also talk to Citizens Advice about those.
Jakee says
My other half is leaving me and taking off, leaving his job will probably not pay any of his debt and we have a joint mortgage which we have just taken out! How will I stand if he doesnt pay his personal debts can they put a charge on the house? I will manage financially and pay the mortgage but worried as his name is on it. Any advice welcome on what to do.
Sara (Debt Camel) says
What a nightmare for you. How much equity is there in the house? Did you contribute equally to the deposit?
Can you really afford the mortgage and all the bills and your own debts and everyday expenses? Not just for a few months but many years? Please don’t say “I will have to manage” but really think how realistic it is.
If you have a joint current account with an overdraft facility, you need that sorted ASAP.
Worries about a charge on the house for his debts are a way down the line. First his creditors have to get so fed up they go for a CCJ – if he has ‘normal’ debts (not business debts or aggressive bad credit debts) this won’t be for a long while as the lenders will just sell the debt to a debt collector.
Any future charge can only be his share of the equity, not yours.
Jakee says
We have literally just bought it, we purchased from the housing association so the discount of £9000 was the deposit. I’m not sure what the equity will be but we wouldnt be able to sell without offering it back to them anyway we have just paid the first months mortgage, this has totally come out of the blue!
I can afford it as its not a massive mortgage luckily less than the rent we were paying. I have been getting overtime at work due to working in payroll and my son has a job and also receive dla for my other son.
We have no joint accounts only the mortgage.
Sara (Debt Camel) says
would he be prepared to transfer it into your name?
Jakee says
I honestly don’t know. He’s in crisis atm with all this pandemic and says he needs to get away! No thoughts for any of us that he will leave behind I doubt he will consider anything else.
Sara (Debt Camel) says
OK, it sounds as though he could do with talking to a doctor, but that is never easy to suggest… Ask him to keep in touch with you perhaps?
jodie says
We have just had a council tax bill come through- For my partner and his wife. The bill is dated as far back as 2010 but there is one in 2012 too.
We don’t know what to do – it says it is a Liability order- my partner has lived with me and the same council for 4 years and this is the first letter we have had.
What do we do? Total is £2700 – can we pay half? should we pay even though is 8 years ago? If we pay half will they chase us to the other half?
any advice please
Sara (Debt Camel) says
Is this saying this is a new liability order? Or that there was one years ago?
You have no liability for this debt if it relates to council tax before you lived there.
Your partner, unfortunately, is liable for the whole amount, not just 50% of it.
What is your partner’s financial situation at the moment?
Paul says
Hi My Partner has being paying the full mortgage in joint names for the past 10 years. Her ex left the marital and never paid anything to the house or bills and got another house. Can she claim half the payments made against home from her ex under joint and several?
Sara (Debt Camel) says
“joint and several” is a phrase that says who has the legal liability to pay the mortgage. Your partner is fully liable to pay ALL the amount, not half.
If your partner hasn’t talked to a solicitor about the equity in the property after the split, I suggest she needs to do this now.
Steve says
My partner walked out of our 16 year relationship and left me in the house, we had a joint mortgage on the house. I am still in the house 3 years later and have added value by way of a new kitchen etc.
Whilst we were together we both ran up some debts in my name. Initially we withdrew money from my credit cards to raise the deposit for the house we bought, over the relationship we consolidated our debts a few times with loans in my name, and several holidays and cars were bought which we both used. The reason we did this was that I was in a good job and she could’ve get credit.
We agreed After we split that she would continue to pay her share of the debts but this never materialised, I then lost my job and hit financial hardship meaning the debts needed up all defaulting.
3 years on I am having to sell the house due to being unable to communicate with my ex and having arrears in the mortgage.
We stand to get a payout of around £40k upon completion of the house which will be split 2 ways, Im asking that my ex pay her share of the debts and I pay mine from the house money, is my ex legally responsible in anyway to pay these debts even though they are in my name?
The whole process seems so confusing and I can’t find anything online that gives clarity.
Colin says
I have received a summons for unpaid council tax. When my ex and I separated I gave her money by way of a financial settlement, to include the amount owed for Council tax. Unbeknown to me, rather than settling the whole sum, she entered into a payment arrangement with the Council, subsequently defaulted on the payments and now the summons comes to me under Joint and Several liability. I understand that concept but my question is did she not assume liability for the debt when entering into a payment arrangements. I had no knowledge of the arrangement, didn’t consent to it and received no correspondence at the time. It was only months later that the Council wrote to me to say the debt was owed still.
Sara (Debt Camel) says
did she not assume liability for the debt when entering into a payment arrangements.
No, that would have required the council to agree to remove you from liability, and they would not have done that.
it is a shame you did not settle the council tax debt yourself directly.
Legally the council is entitled to go after you for the money and your only recourse is to go after your ex…
Colin says
Thank you for your assistance
K says
When me and my ex split up he left me with a £1400 gas and electricity bill, he was the account holder and I was just named, because he left I was getting letters chasing us and threatening court. I was fortunate enough to pay the bill, I did ask the G&E to pass his half to him but they wouldn’t, he agreed to pay his half during a mediation session so it is noted down that he has agreed but he still refuses to pay his half, what can I do to get him to pay it?
Sara (Debt Camel) says
Take him to court for a CCJ? But unless you think he actually has the money, that just wastes your money on court fees.
What did the rest of the mediation agree?
K says
The mediation agreed he would pay £20 a month until the debt was paid off, he made one payment in January but now saying he won’t pay the rest just trying to work out my options