Are you liable for the debt?
Introduction
This is a brief guide and it cannot state the full details of the law.
Further details on specific items are available from your local Citizen's Advice Bureau or Advice Centre.
If in doubt seek help.
Make sure you are liable forthe debt
Always check that you owe the money before agreeing to make repayments. This is called being liable for a debt. Many people are asked to pay back money they are not liable to repay.
Generally speaking, you are not liable for your partner's, or anyone else's debts, unless you signed an agreement or acted as guarantor. The two main exceptions to this are council tax and water charges.
Did you sign an agreement?
Most people will have to sign an agreement in order to get money or goods on credit.
If you signed the agreement alone, you have sole liability - you and nobody else owe the debt.
If you signed along with someone else you have joint and several liability. This means you will each be regarded as owing the full sum.
Just because you live with someone, are married to them or just have the same address, does not mean you are liable for their debts. However you can be jointly liable for council tax and water charges with your partner if you live with them.
If you have signed as a guarantor for someone, you have accepted liability for the debt in the event that the other person does not pay.
If someone signs an agreement in your name and without your agreement you may not be liable, and they may be guilty of fraud. You will need legal advice.
If you have been forced to sign an agreement against your will, e.g. by a partner, or you have been misled, you may not be liable for the debt. Seek legal advice.
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]