§ 1543 Joint Debtor Release Rules

If one of several people who share a debt signs a release, the other debtors are still responsible for the full amount and can still seek contribution from the released debtor, unless they are only guarantors.

Key Takeaways

•A release of one joint debtor does not cancel the debt for the others.
•The remaining debtors can still pursue contribution from the released debtor.
•This rule does not apply if the released party is only a guarantor.

Example

Three siblings inherit a house and each owes part of a mortgage. If one sibling signs a release saying they are no longer responsible, the other two still owe the full mortgage and can ask the released sibling for their share back.

The release only frees the signing sibling; the others keep owing the whole debt and can collect contribution from the released sibling.

A release of one of two or more joint debtors does not extinguish the obligations of any of the others, unless they are mere guarantors; nor does it affect their right to contribution from him or her, except as provided in Section 877 of the Code of Civil Procedure. (Amended by Stats. 1987, Ch. 677, Sec. 1.5.)

Key Takeaways

•A release of one joint debtor does not cancel the debt for the others.
•The remaining debtors can still pursue contribution from the released debtor.
•This rule does not apply if the released party is only a guarantor.

Example

The release only frees the signing sibling; the others keep owing the whole debt and can collect contribution from the released sibling.

Key Takeaways

Example

Key Terms

References

§ 1543 Joint Debtor Release Rules

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References