Paying off 1/3rd of a joint loan possible?

N

nearlyhappy

Registered User
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Hi everyone,

Some advice if i can before pursuing my options.

Took out a 50k loan with 2 others for a business venture. Personally guaranteed between the 3 of us.

Venture has failed, I'm in the position to pay off my third, the other 2 arent.

How will the bank look on this? is it possible for me to pay off my third and walk away? I'm presuming not because of acruing interest and so on.

Wondering if anyone has had this before...

Thanks

NH
 
How is the guarantee worded? Did you specifically just guarantee 1/3 of the loan or did you all make the guarantee jointly and severally? If it is jointly and severally the bank will be unlikely to release you from it by just paying a 1/3 as technically they could have the option of recovering the whole debt from you if the other two guarantors are not in a position to pay their share.
 
I think that unless there were 3 seperate loans, with seperate agreements you would still be responsible for the the balance, but a chat with the bank is required to come to an agreement to repay at a reduced amount?
 
As above, you need to check your facility agreement / guarantee (if a separate document) and ascertain if the liability is joint and several or just several. If joint and several, you are all on the line for all of the debt. If several you are on the line for a 1/3 each. This will rule how a repay would be governed.
 
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