What Does Joint And Several Liability Mean?
“I got sued and there’s somebody else that got sued with me and they say we have joint and several liability. What is that?”
Joint and several liability is a phrase under the law that says the creditor who’s got a judgment against you and your co debtor can collect part of it from you and your co debtor or all of it from you or all it from your co debtor. They aren’t stuck getting half of it from you and half of it from your co debtor, and that’s a really important issue under the law, and it becomes especially important when you and your co debtor are spouses and you have property that’s held jointly as tenants by the entirety.
That means that this creditor can reach tenants by the entirety property in bankruptcy or outside of bankruptcy and so that property is at risk, and when you’re considering bankruptcy filing you need to consider that and you need to plan to determine the right strategy for you and your spouse and your jointly held property.