Legal Question in Credit and Debt Law in Tennessee
I work for an apartment complex in the state of Tennessee. We often have multiple people, on a lease, as responsible lease holding residents. They are all liable for the rent and any damage charges, etc. that they incur while living there. If we have to send them to a collection agency, can we submit all of the parties involved and is there a break down made between them? One collection agency that we use is based in Mississippi and they have only been picking up and going after only of the responsible parties. A company, in Tennessee, said they go after every one for the full amount owed, seperaely. Which is the right way to submit these parties for collection? We want it to go against all of them as far as their credit reports go because they are all liable and it would never get this far if they had held up their end of things and paid what they had owed.
1 Answer from Attorneys
Unless there is a writing saying otherwise, all of the tenants who signed the lease are jointly and severally liable. Thus, my recommendation would be to go against all of them for the full amount and not apportion any part of the claim to the individual tenants. If they want to apportion the claim among themselves, that is their business and not your problem. Of course, once the full amount of your claim is paid you would have to refund any overpayments, but the way to do that would be to issue a refund check made payable to all of the tenants, and then let them decide among themselves who would be entitled to the refund.