Q: If 2 parties are responsible for a debt and 1 party party pays a portion of that debt andit is considered to be "in full
and final satisfaction of her liability herein" is the other party still responsible for the remaining debt? Nowhere in the contract does it specify that either of the parties are responsible for a certain portion of the debt. It appears to be considered 1 debt. If her debt is satisfied, isn't the whole debt satisfied?
A:
No. You are reading the law backwards.
Each person on any joint debt is responsible to the lender (creditor) for the entire debt, not just half (or any other portion) of the whole debt. So if one of the debtors pays off 50% of the entire debt, that debtor still owes the other 50% to the creditor. On the other side, the debtor who paid nothing now owes the creditor the same amount remaining on the entire debt (i.e. the remaining 50%).
A:
You both are liable to the creditor for the entire amount of the debt. Between the two of you there may be a claim of contribution if one party pays more than his/her proportionate share. With the language of "full and final satisfaction of her liability herein" it sounds as though one debtor paid the creditor and the creditor agreed to release her from any further liability. However, you still remain liable for the remaining balance of the debt.
There is a possibility that you could limit the amount you had to pay based upon the creditor releasing a co-debtor, but I believe you would still be liable for your proportionate share.
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