Outstanding Loan after breaking up with partner

pieming · Post by **pieming** » Sun Jun 07, 2015 6:16 pm

Hi,

My wife still has an outstanding loan with her ex-husband. It has been guaranteed by her father & brother. We have been paying him our share of the payments but recently we have discovered that he has not made the last two payments to the bank. Would anyone know if it is at all possible for us to approach her bank & split the loan 50:50 and we would pay them directly to cover her half.

I don't think it is possible as I know here in the UK most banks wouldn't allow this but I thought I'd see if anyone would know.

Thanks

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Beep_Boop · Post by **Beep_Boop** » Sun Jun 07, 2015 7:24 pm

All parties involved are fully responsible for the payment. The co-borrowers (your wife and her ex), and the co-signers (the father and the brother).
All 4 of them are legally obligated to pay 100% of the loan instalments (or balance due) until the point where all obligations are satisfied. Unless, of course, one party is capable of assuming the full responsibility of the loan, and he agrees with the bank to do so.

I've seen people prepare separate sub agreements (independent from the bank) whereby the liability of obligations are split evenly. Of course, the bank has nothing to do with that, and it must be decided between the involved parties. To the bank, all parties are still 100% liable.
This has the advantage of giving you, personally, the legal grounds to sue your co-borrower if they neglect to satisfy their share of the obligations. Again, this doesn't have any effect on the agreement you have with the bank.

Pursuivant · Post by **Pursuivant** » Sun Jun 07, 2015 8:12 pm

Basically, the bank can go to any of the guarantors as they're responsible for the loan as if it was their own. For the full amount.

betelgeuse · Post by **betelgeuse** » Sun Jun 07, 2015 8:41 pm

pieming wrote: My wife still has an outstanding loan with her ex-husband. It has been guaranteed by her father & brother. We have been paying him our share of the payments but recently we have discovered that he has not made the last two payments to the bank. Would anyone know if it is at all possible for us to approach her bank & split the loan 50:50 and we would pay them directly to cover her half.

Your wife should keep better track of the payments. She must be able to see the loan in online banking and a good arrangement would involve the automatic payment account for the loan to be co-owned by her. If the neglected payments for the loan have resulted in missed payments to the bank, it greatly reduces the odds that the bank is willing to do unfavorable modifications to the loan. At least there would be a steep price attached.

pieming · Post by **pieming** » Sun Jun 07, 2015 9:47 pm

Thanks for the responses. It's as I thought, we are just going to have to muddle through. It's a bit frustrating that we are paying our share but he is spending our money and not paying the bank. I think we will look at how we are making the payments & make sure that the bank is getting their money before it starts to cause real problems.

betelgeuse · Post by **betelgeuse** » Sun Jun 07, 2015 10:37 pm

pieming wrote:Thanks for the responses. It's as I thought, we are just going to have to muddle through. It's a bit frustrating that we are paying our share but he is spending our money and not paying the bank. I think we will look at how we are making the payments & make sure that the bank is getting their money before it starts to cause real problems.

If you pay his share, he becomes liable to pay the share to you. You should message him that you will take him to court if he doesn't take pay his share in full. If he doesn't agree, then enforcement will take care that he pays if he has the means:

http://www.oikeus.fi/ulosotto/en/index.html

pieming · Post by **pieming** » Sun Jun 07, 2015 10:58 pm

betelgeuse wrote:
pieming wrote:Thanks for the responses. It's as I thought, we are just going to have to muddle through. It's a bit frustrating that we are paying our share but he is spending our money and not paying the bank. I think we will look at how we are making the payments & make sure that the bank is getting their money before it starts to cause real problems.
If you pay his share, he becomes liable to pay the share to you. You should message him that you will take him to court if he doesn't take pay his share in full. If he doesn't agree, then enforcement will take care that he pays if he has the means:

http://www.oikeus.fi/ulosotto/en/index.html

Thank you!! This is an interesting idea. Although financially it would be tough on us to cover the entire payments but in terms of getting him to pay his share it could be quite useful

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