My husband and his partner ran a business that was made insolvant 3 years ago. There was an unpaid bank overdraft that my husband has been paying a monthly amount to ever since. Recently the debt has been passed on to a debt collector who is insisting on the full £25,000. Earlier on in the year the bank was in negotiation for £6,000 of the debt - my husband offered £4,000 but correspondence ceased. My husband has now been told this will be going to court next week. The other partner has paid 1p a month towards the debt and has not had any correspondence about paying the full £25,000. Can the full debt be put on my husband? Where do we stand? Please help.

Joint liability I'm afraid - your husband is liable for all the debt - it can't be apportioned. He can argue his case in court as to how much he should be required to pay, but baks and the like always insist parties to an account are jointly liable for the whole amount.

Sorry....

Please explain how it is decided that one partner will be liable and the other let off, it seems most unfair.

Hi -- If the overdraft was taken on as a joint and several liability, that gives the creditor the right to hold each party jointly..... or individually responsible for the re-payments. This is usual practice in which the creditor will pursue both parties if possible, or take action against the individual where they stand the most chance of re-couping the outstanding balance from.

It is not a case of letting one or either partner off, if they could more easily pursue the other partner instead of your Husband.....then that is what they would do.

Fairness doesn't come into it I'm afraid. Your husband's advisors should have told him from the start that being jointly and severally liable can mean being saddled with all the debt if the bank decides you're the one worth pursuing.

There is nothing to stop your husband suing his ex-partner for half the debt.

Does the expression 'throwing good money after bad' not come to mind?

Will the court take into account our family circumstances? Our daughter is currently under going a course of Chemo as she was diagnosed earlier this year with cancer, although she does not live with us she sometimes convalesces at our house, also the grandchildren frequently stay when she is not well. To add to this I also help care for my 95yr father who is partially sighted and has Parkinson's, he lives alone. Tomorrow is the court day, how do we let them know this information? I am really panicking now. Please help>

Hi --- Yes, of course they wiill take account of all your personal financial circumstances.You need to complete an income and expenditure accounts sheet and present it to the court as evidence of your financial situation showing all your income opposed to your expenses for everything, you should include all the associated expenses you incur and the court will make an order that you are comfortable with.

I enclose an example of a I & E accounts sheet below, you can put your own figures into the sheet then print it off and hand it to the court, the court will make an order and ask if you are in agreement, if not explain why you are not. If they make an order that you still feel is too high then you can apply for a variation order by asking the clerk of the court after the proceedings.

Good luck & try not to worry the courts will listen to what you say, just be open and honest and state your case clearly.

http://www.insolvencyhelpline.co.uk/info-centre/budget-calculator.php

Thanks, but how can we tell the court this tomorrow as we have already sent in the accounts sheet but did not think to included any of our personal circumstances on it. Tomorrow the Bank is applying for CCJ at court by post.

Hi --- If an order is made based on the incomplete I & E accounts in which you have forgotten to supply details of your expenditure created through your dependent relatives, then simply inform the clerk of the courts office and ask them to help you apply for a "variation order", this allows that a new amended payment order can be made by the court based on your ability to pay.

Thank you, let's see what today brings then now.