What to do if you have joint debts

A joint debt is exactly as it sounds. Both parties within the agreement are liable for the debt. Whether this is council tax or a personal loan or mortgage, if the creditor cannot get their money back from one debtor they will simply chase the other debtor for the money.

There is no such thing as a joint IVA or Individual Voluntary Arrangement, it is not legally possible, nor could one member of a married couple include their spouse's debts in their IVA. An IVA on behalf of one spouse can include a maximum of 50% of the joint debts. However, if the debts are over ten thousand pounds, a couple can take out linked IVAs where the plan that is proposed to the creditors is relative to both debtors. In this case, rather than paying double the monthly amount, the total will be fifty percent more than a single monthly payment. Again, this can often make things easier on a couple whose monthly repayments are much higher than any IVA repayment.

Joint debts are only truly joint if both names were on the application form and both parties' signatures appear on the agreement. The debt is legally only in the name of the person who took out the original credit agreement and that includes if you have allowed someone else to be a second card holder on your credit or store cards. If this person wracks up a host of debts on your cards, there is nothing that you can do, you and no one else is legally bound by the terms of your credit card agreement.