Faced with an issue of first impression, the Pennsylvania Superior Court recently held that an individual judgment against a husband and an individual judgment against a wife related to the same indebtedness cannot be consolidated.
As a result, assets jointly owned by a husband and wife as tenants by the entireties may not be executed upon to satisfy the same indebtedness due separately by a husband and a wife. The Court’s ruling also reinforced the principle that both spouses should sign a single guaranty agreement when jointly held property may be pursued to collect a loan. The case of ISN Bank v. Rajaratnam, 679 EDA 2013 (Pa. Super. Ct. Nov. 25, 2013), has significant impact on both the negotiation and documentation of finance transactions, along with the maximization of creditor’s rights on defaulted loans.
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