QLD Loan Agreement with Ex-Partner - Suggestions?

[Lukas]

Hi,

I got a loan out in my name with my ex-partner and split the money between us. The loan is currently in my name with both of us paying the repayments. I have finished my part of the loan but am worried she may stop paying her part of the loan. What grounds do I have?

I have got her to sign a document stating I loaned her a specific amount that should be paid to me every fortnight as loan agreement. I also have email conversations and evidence of her transferring money into my account for the loan. Am I covered if she stops paying me? If not what do I need?

Also, what happens with loan payments, can that be transferred into her name by the court? She currently cannot get a loan due to bad credit.

 

[Sophea]

Hi Lukas,

As far as your liability for the bank loan goes, you are it. You are 100% liable for repaying the full amount of the money owed to the bank, and if you default they can sue you for the full amount. However, you have a right to reimbursement from your ex based on the loan agreement. Therefore, you must pay the full amount to the bank if she fails to do so and then sue her for her share that she didn't pay off.

No bank will transfer a loan into a different name - especially someone with bad credit, and a court will generally never make such an order either. It works as I have explained above.

 

[Lukas]

Thanks for your reply. In your opinion, what evidence would I need to prove that I have loaned her the money? Is a signed letter stating I loaned her money and bank statements of previous transfers sufficient?

If it comes to suing her for my money I want to avoid high legal costs. Is there any way she can void the contract letter? Is there anything else that would make her case null and void?