I have a loan which I took out with a partner we have now split who has to pay loan?

Question

the loan bought bought a car that my partner has and drives plus contents in the house she lives in

Answer 1

If you both signed the loan, you both are liable regardless of who as what now. Whatever you pledged as collateral can also be collected upon (such as if you had a Security Agreement pledging Account Receivables, the bank can contact your customers and have them send all outstanding payment to the bank, not you). If you signed a personal guarantee, then you are personally liable and they can go after your personal assets.

Hopefully you are still one reasonable terms with your ex-partner and can work out an amicable agreement. If she wants to keep the car then refinancing the vehicle in her name alone would be the most logical solution.

Business assets should not have been used to furnish her house; if she misappropriated funds, then you could sue her, but that will involve time and expense. In the meantime, the loan payment needs to continue to be paid.

Talk to whoever at your bank is assigned to the loan and make sure that you receive copies of all notices that are sent out and make arrangements to keep the loan current until you can work out a solution with your ex-partner. Get copies of whatever was signed so you know what you are looking at. You may have to get a lawyer and this is the first thing he is going to need to see.

If you have a checking or saving account at the same bank and the loan becomes delinquent, the bank has the right of set off, which means they can use the money in your account to make the payment. If they make a demand for the loan if the loan becomes past due, they can take everything in your checking and savings and apply it towards the loan. You may want to move those accounts to another bank to avoid this.

Good luck!

Answer 2

Yes, the paperwork rules here. You may be able to talk her into getting you off the paperwork, but I doubt it because the bank has you both on the hook right now, and the risk for the bank increases if she drops you. She would have to refinance to get you off of there, and that would mean I hope that you have been very nice to her since the breakup.

Morally, she should pay obviously. If she tries to stick you with it, you could sue her depending on your local laws. Even though you are on the hook to the bank for the loan, she could be on the hook to you. This would require a judge to decide this, but that would be strongly dependent on local law, and probably wouldn't be worth it. Talk to a lawyer if you think this is necessary.

Your best bet is to be nice to her and hope she doesn't try to screw you here. Flowers might help.

Answer 3

The lender is not interested in who gets what from the money loaned and expects the borrowers to repay under the conditions agreed upon by lender-borrower.

Both you and your partner will have to decide on the nitty gritty. It would be unwise for third party opinions without indepth details about the relationship. Lesson to be learned here indeed.

Answer 4

If you both signed the paperwork, you are equally responsible.
The only recourse I can think of is to sell it, and split the profit if any, or split the cost.
As far as the contents in her house, it also depends on whether you split the cost. Not knowing where you live makes it hard to answer.
If you live in the US, you need to check to se if you live in a "Community Property" state. There are laws that will protect your investments.

Answer 5

whoever is in possesion of the property should be paying the loan, even though you are not married, you still have the option of court. i would agree with the suggestion of trying to have her work with you to get your name off of the paperwork...and if that doesn't work go to small claims court before you end up paying a shitload on the loan and have nothing to show for it...PS...you can't get back what you have already paid, you have to start from where you are today and go from there.

Answer 6

If you are both on the papers then you are equally responsible. If your partner is on the papers and you are not, don't worry about it. If you are the only one on the papers GET YOUR PROPERTY BACK. The loan is your responsibility whether you are in possession of the car or not.

Answer 7

if you took out the loan you are responsible unless she co-signed. there are ways in court to get the items you list back, but it sounds like she is trying to but the screws to you so Make a list of everything that is business related and take it to a lawyer. the car is cool thing, if you go to the bank and explain what is going on they may re-po it and take that amount off of the total amount you owe them, but you still have to prove to them that you own the vehicle. do you have any written agreement or the paperwork on the car? is the vehicle registration in your name, are the plates listed under the business? you need to get going on this before any damage is done to any of the property because you want it back before it is valueless.

Answer 8

How were the papers signed. If you signed as individuals, you are both on the hook for the payments. If you signed as an agent of whatever your company was (that you said you have a partner for) then perhaps the company could be liable, but that depends on many things, too.

Answer 9

The contract with which the vehicle was used to transfer ownership shows quite clearly who is responsible for repayment of the loan.

I believe it would be best to look at it as if you handed your ex-partner a gift.

Some gifts are tax deductible

Answer 10

The co-signer is responsible ONLY if the forst party doesn't pay. So if bought of you guys signed the papers, bought are responsible. But whoever was the co-signer is ultimately responsible.