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Nicola-mod
Nicola-mod, Moderator
Category: Bankruptcy Law
Satisfied Customers: 21
Experience:  Moderator
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My brother has a bank loan of £600,000 plus interest of £16500.

Customer Question

My brother has a bank loan of £600,000 plus interest of £16500. The bank has issued him with a statutory demand for this to be repaid in ten days. He is unable to raise this money within ten days. He is able to pay the £16,500 in interest now and he is awaiting payment of£30,000 in single farm payment from the Dept of agriculture. This 30k should have been paid in dec 2013.

My brother has assets of £760k but not all of these assets are held as security by the bank.

What steps should my brother take?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello, welcome to the website. My name is Tony, I can assist you with this.

Expert:  Nicola-mod replied 3 years ago.

Hello,

It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.

I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola
Customer: replied 3 years ago.
I can wait
Customer: replied 3 years ago.
Please can I have answer
Expert:  Nicola-mod replied 3 years ago.
Hello,

We will continue to look for a Professional to assist you.

Thank you for your patience,
Nicola
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

Sorry to hear about the fact that a statutory demand has been served on your brother.

He should pay the bank the 16500 interest that he is able to pay now and reply to the Bank that he will be paying the 30K as soon as he receives it from the Government.

He should explain to the Bank that he is trying to do all that he can to service the debt. The bank may choose not to do anything as far as the statutory demand is concerned, or it may choose to file legal action against your brother.

If your brother's assets are more than what is owed to the bank and the bank is refusing to back down, he may wish to consider selling his assets to repay the bank.

Hope this helps
Customer: replied 3 years ago.
If the value of the assets that are held as security by the bank exceed the value of the loan, can my brother apply to the court to have the statutory demand set aside?

Or can he try to arrange an IVA with the bank?
Expert:  UKSolicitorJA replied 3 years ago.
The statutory demand can only be set aside if payment is made.

Yes, he may try to arrange an IVA with the bank.

All the best
Customer: replied 3 years ago.

i have just found out that my brother has not been issued with a statutory demand. he has been asked to repay the loan within ten days by a firm of solicitors acting on behalf of the bank.


 


so he is just at the stage before being issued with a statutory demand. The value of the assets held by the bank far exceed the amount of the loan. in these circumstances can he not apply to the court to have the statutory demand set aside if a statutory demand is issued?

Expert:  UKSolicitorJA replied 3 years ago.
Yes, in that case your brother should be able to get the statutory demand set aside as the value of his assets held by the bank exceeds the debt.

Hope this answers your original query.

Can I assist you further?
Expert:  Nicola-mod replied 3 years ago.
Hello,

Just a quick reminder, there is an unrated answer waiting for you here from the Professional.

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Thank you,
Nicola