Check If You Qualify

Am I liable for my partner’s debt?

Sharon McDougall - Updated - 1st February 2024 - 3 minutes to read

Liability for a partner’s debt depends on whether the borrowing is in joint names or your partner’s sole name. In essence, if the debt is in their sole name you cannot be held liable unless you have acted as guarantor when the loan was taken out.

Acting as guarantor for your partner means making a personal guarantee that you will meet loan repayments should they fall behind. If you are a guarantor for any of your partner’s borrowing, the creditor will look to you for payment should they be unable to recover the money from your partner.

What is joint liability?

In the case of loans with joint names, you will be held ‘jointly and severally’ liable for the debt. This means that if your partner is unable to afford the loan repayments at some point, the full outstanding amount will be your responsibility.

Being jointly and severally liable applies to bank overdrafts as well as personal loans. If the account is held in joint names, there is no escaping your responsibility should your partner be unable to make repayments.

Debt Calculator

Get a rough indication of what your monthly repayments might be under each of our different debt solutions.

How are credit card and store card accounts affected?

Being an additional cardholder on your partner’s credit or store card does not make you liable – as the account is in your partner’s name, they are responsible for repaying any outstanding balance.

Unfortunately, the reverse is also true – the inclusion of a partner on your credit or store card account means that if they run up debts that they cannot afford to repay, the responsibility lies with you to bring the account to order.

What is the criteria for mortgage arrears?

Again, the crucial factor is whether the mortgage loan was taken out jointly or in your partner’s sole name:

If the mortgage is taken out in joint names:

If your mortgage is in joint names, you continue to be responsible for repayments even if you have moved out of the property. Should your partner fail to make the required payments, the full outstanding amount remains a joint liability.

If the mortgage is in your partner’s sole name:

When considering arrears on a mortgage in your partner’s sole name, you will not be liable for the debt but may face eviction by the lender should they attempt to recover their money by repossessing the property.

Further consideration has to be given to the fact that a creditor may make a claim regarding your ‘beneficial interest’ in a property. This could happen if you have contributed financially to its upkeep or household bills on a regular basis.

The length of time it takes to build up ‘beneficial interest’ in a property is complex, however, and each case is viewed differently by the courts.

What is the liability for rental agreements?

Joint rental agreements work in much the same way as a mortgage, in that you are responsible for the entire amount of rental outstanding and could be evicted by the landlord in an attempt to control their losses.

Can my credit rating be damaged?

If you have any history of joint borrowing with your partner, their debts could adversely affect your credit rating simply by association. You can contact the main credit reference agencies to request ‘financial disassociation’ if there is no outstanding joint borrowing, and you no longer reside at the same address.

It is important to contact your utility companies and local council if you have moved out of a property previously shared with your partner, as you may be held responsible for paying these bills if they are not informed.

Responsibility for joint debt secured on an asset can be a complex area. Get professional advice from Scotland Debt Solutions – we will help you understand your financial situation and responsibilities.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall

Manager

Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a Trust Deed?

Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...

About

Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser

Headset

We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

Tools

Useful Tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp
Headset

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

OUR SERVICES

We can help you with...

Sequestration

Sequestration

Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

Find out More
Trust Deeds in Scotland

Trust Deeds in Scotland

A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.

Find out More
Debt Arrangement Scheme (DAS)

Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.

Find out More
Business Debts
Icon Briefcase

Business Debts

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

Business Debts

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners