I have a client who had a personal loan from a lender in 2006 for $30k and a second loan from the same company for $6k. Both he and his wife were on the loans and the loan docs stated that it was a jointly and severally liable loan. They got into financial trouble in 2009 due to fraud and theft by the husband's business partner. A final demand was issued on the $30k loan in july 2009. The husband was made bankrupt by creditors (debit collectors) of his company in March 2010. They were contacted by the loan Co in about Dec 2009 and agreed to pay off the $6k loan and the company would drop the larger loan as the bankruptcy was about to occur. Then they received a statement from the loan Co. showing the loan was written off as agreed. That was Jan 2010. They have the statement showing it is written off , but the collection company is now taking legal action to recover the debt as of 19 Jan 2015, from the wife. The trial is in Adelaide in early August and she does not have money to go there. She is on a sickness pension and does not work. Is there a way out for her from the joint and severally liable clause? If the loan was written off, the company has received a tax deduction for its loss hasn't it? This is a Debt collector with an in-house lawyer trying to collect this money after over 5 years of no contact. Can anyone help?