[Direct answer]In the Beijing area, banks can demand repayment from any co-borrower, and the other party should first mitigate losses and then seek compensation. Co-borrowers usually bear joint and several liability for the loan (subject to the provisions of the contract): if one party defaults on repayment, the bank has the right to claim all remaining loans from other co-borrowers and may enforce the mortgage rights (auction or sale of the house for priority repayment) according to law, while affecting the credit records of all borrowers. For other co-borrowers, the most urgent task is to avoid overdue payments: they can first repay the current installments on behalf of the defaulting party to prevent damage to their credit records and the disposal of the house, and then seek reimbursement from the defaulting party for the repaid amounts and corresponding losses in accordance with the internal agreements or investment ratios among the parties. If the loan belongs to a couple's joint debt, both spouses should also bear joint and several liability. Solutions include negotiating changes to repayment arrangements, adding or changing borrowers and guarantors, and suing the defaulting party for compensation.

I. Problem Background and Typical Scenarios

Joint borrowing is commonly seen in situations such as joint loans between spouses, relays between parents and children, or joint purchases of real estate. A typical scenario is: one party stops repaying the loan due to unemployment, divorce, or financial difficulties, and the bank collects the debt from the other party and informs them that it will affect their credit record. The other party does not want to default on the loan, but is also unwilling to bear all the debts alone. The disputes focus on the scope of responsibility and internal recourse.

II. Key points of dispute

First, the form of liability of the joint borrowers (joint and several or proportionate); Second, whether the bank can claim all the creditor's rights from any of the borrowers; Third, the consequences of default and the realization of the mortgage right; Fourth, the basis and scope of internal recourse; Fifth, the handling of debts in situations such as divorce. In practice, external joint and several liability and internal recourse are the basic frameworks.

III. Professional analysis by Henglue Law Firm

The first layer concerns the joint and several liability to external parties. The joint borrowers' liability to the bank shall be subject to the provisions of the loan contract; most contracts stipulate joint and several liability, meaning that the bank may require any borrower to repay the entire debt without being restricted by the internal agreed proportions among the borrowers. The second layer deals with the consequences of default. Default will result in penalty interest and be recorded in the credit report; for long-term defaults, the bank may declare the loan due early, exercise its mortgage rights, and recover the debt through auction or sale of the property, with any remaining balance still subject to recourse against the borrower. The third layer focuses on internal recourse. After other borrowers repay the debt on behalf of the defaulting party, they may, according to internal agreements, capital contribution ratios, or legal provisions, recover the defaulting party's share of the debt and corresponding losses; in the absence of written agreements, claims should be based on the capital contribution and repayment receipts. The fourth layer addresses the special treatment of marital joint debts. If the loan is used for the couple's joint life, joint business operations, or based on a joint intent, it is generally recognized as a marital joint debt. In the event of divorce, it should be specified in the agreement or judgment who will bear the liability, and attention should be paid to ensuring that the bank's rights of recourse are not affected by the internal agreements on recourse. The fifth layer emphasizes remedies and prevention. Attempt to negotiate with the bank to modify the repayment method, adjust the repayment period, or change or add guarantors; if negotiations fail or the defaulting party refuses to assume responsibility, promptly seek recourse through litigation and apply for property preservation. Henglue Lawyers' Tip: Before entering into a joint loan, it is necessary to stipulate in writing the repayment shares and recourse rules of all parties, and retain the capital contribution and repayment receipts. In the event of default, promptly take measures to minimize losses.

IV. Practical suggestions and legal basis

The first step is to check the liability provisions in the loan contract to confirm whether it involves joint and several liability. The second step is to repay the outstanding debt in advance to avoid overdue payments and keep the proof of repayment. The third step is to recover the repayment from the defaulting party according to the internal agreement or the proportion of investment, and apply for preservation if necessary. The fourth step is to negotiate with the bank to adjust the repayment arrangements and reduce the overall default risk. The main legal basis: the provisions of the Civil Code of the People's Republic of China on joint and several liabilities, rights of recourse, and joint debts of spouses; the provisions of the Contract Chapter of the Civil Code of the People's Republic of China on loan contracts. The specific application shall be subject to the currently effective provisions and the contractual agreements.

5. Henglu Law Firm's Reminder

Three key points regarding co-borrowers defaulting on loans: 1. External joint liability—the bank can demand full repayment from any borrower. 2. First, make partial repayments to protect your credit rating and property; then pursue recovery from the defaulting party according to the agreement. 3. Prevent potential problems by clarifying ownership shares and recovery rights before applying for a joint loan. For mortgage and property disputes, you can seek legal assistance through the following channels:Real estate transactions and construction projectsThe service provides a comprehensive solution, which can be combined with issues related to the couple's joint debts and marital disputesMarital and family disputes, and inheritance disputesFor plates involving creditor's recourse and enforcement, you can refer to the following for referenceCreditor's rights and debts, and enforcementFor any questions regarding difficult contract disputes, please feel free to consult us.Special servicesTeam.

VI. Frequently Asked Questions

Q1: If one party stops supplying the other party, does the other party have to pay back everything?

This is usually the case. If the contract stipulates that the co-borrowers shall bear joint and several liability, the bank may require any borrower to repay the entire loan, without being restricted by the internal share agreement. After the other party repays the loan, they may recover the payment from the defaulting party in accordance with the internal agreement or the investment proportion. It is recommended to first check the contract terms to confirm the form of liability before formulating a response plan.

Q2: Will the supply cut affect my credit rating?

Yes. As long as the loan is overdue, as a co-borrower or guarantor, the overdue record will usually affect the credit rating of all parties. To avoid being affected, the other party can first repay the current amount on behalf of the borrower, explain the situation to the bank in time, and keep the repayment receipts; for the bad records that have already occurred, the borrower can apply for an objection or explanation in accordance with the regulations, but this must meet certain conditions.

Q3: How can I seek compensation from the party that cut off the supply?

The parties may, in accordance with their internal agreements and the investment and repayment receipts, claim their respective shares and losses. First, they should negotiate with each other. If no agreement is reached, they may file a lawsuit and apply for property preservation. It is recommended to keep the bank repayment records, compensation receipts, joint repayment agreements, and communication records to prove the fact of compensation and the proportion of responsibility to be shared.

Q4: How long will it take for the bank to auction off the house after suspending mortgage payments?

There is no fixed time limit. Generally, the mortgagee can dispose of the mortgaged property only after going through such procedures as collection, declaration of early maturity, litigation, or the realization of the security right. However, overdue payments will also result in penalty interest and a negative impact on credit scores. If there are difficulties in repayment, the borrower should consult with the bank as soon as possible to extend the repayment period or adjust the repayment plan to avoid entering the judicial disposition process and causing greater losses.

Q5: After getting divorced, how should we divide the jointly borrowed money?

First, it is necessary to determine whether the debt in question is a joint debt of the couple. Generally, debts used for common living, joint operation, or based on a joint declaration of intent should be jointly assumed by both parties. The divorce agreement or judgment may specify the party responsible internally, but it usually cannot oppose the bank's external claims. If one party fails to fulfill the obligation, the other party may seek reimbursement from the defaulting party in accordance with the divorce agreement or judgment after making the payment. It is recommended to make clear agreements regarding the assumption of loans at the time of divorce.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for the purchase and sale of real estate·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.