Am I liable for my partner's debts?

If two people jointly enter into a credit agreement, they are both liable for the whole amount of the debt. This is known as 'joint and several liability'. For an agreement to be joint and several, it must be signed by all parties in the form required by the Consumer Credit Act. So, if you have not signed such an agreement, you are not liable for your partner's debts.

However, joint and several liability can also apply to rent arrears on joint tenancies, or arrears on joint mortgages, to council tax payments for couples and to water/sewerage charges on properties which are jointly occupied. You need to talk to the individual creditor to obtain a clear understanding of the liability for the debt.

If I die does the debt die with me?

Any debts become the liability of your estate. If there were sufficient assets in your estate to settle your debts then this would be done by the executors. Creditors may sometimes attempt to claim payment from a partner or relative of the deceased, particularly if they lived with them, but if the estate cannot settle the debts, partners or relatives are not obliged to do so.

There are several possible exceptions to this rule:

1. Debts for which someone had joint and several liability with the deceased.

2. A mortgage remains on a property even if this passes to a new owner by inheritance (although it may be paid off by an insurance policy at death).

3. Taking over tenancy from the deceased by succession, which may involve taking over rent arrears if these cannot be paid by the estate. A tenant by succession can lose their home if the arrears are not paid.

4. For married couples, there is joint liability for council tax. In the event of a spouse’s death, the surviving partner remains liable for any arrears.

It is always worth checking to see if there is payment protection or other insurance in place to clear the debts on death.

How long can I be chased for a debt?

Most debts can be pursued for six years, in accordance with the Limitations Act 1980.

What happens if I owe money but have left the country?

If you move abroad, payment of your UK debts will still be pursued by your creditors. If you have County Court Judgments, these cannot be enforced by UK bailiffs but your creditors may attempt to recover the debt via local debt collection agencies. It is unlikely that your creditors will write off your debts.

If you have any further questions, please contact us.

MK Financial Solutions is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority

HL Partnership Ltd is entered on the FSA register (www.fsa.gov.uk/register) under reference 303397

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT.

The guidance and/or information contained within this web site is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.