Is she not paying?
Does she have a house? Can we have background please?
She has never attempted to pay me anything regarding this loan. It was initially made because she had purchased a flat in Spain, could not afford the mortgage and was going to sell it. When it was sold she said she would pay the money back but the property did not sell. The loan was made in 2006 and so far no attempt has been made to repay it. We do have an agreement made which I drew up and we had it witnessed and signed and she has a copy as do I. Ideally I would like this agreement to be held with her solicitor, I would do the same with mine, but so far all attempts at discussion regarding this have been fruitless.
She has a house here with a mortgage and I also believe she is very heavily in debt to credit cards but I am not absolutely sure of this. She has a full time job, as does her husband, and she also has a pension as well.
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In which case, presumably youwould prefer to be repaid or if they do not have the money to repay you, youwould like a charge against their property.
The first thing to do is totake her to court to get a judgement in respect of the money. If you then don'tget paid, you make a further application to court to enforce the judgement.
You can do that in severalways.
You can apply for an attachment of earnings order. An attachment of earnings order is only any good if he isemployed because that is an order for an employer to pay money to you directlyfrom his wages.
The third party debtor order is an order forsomeone else (the bank, for example) to pay money to you directly. But, theremust be enough money in his account to cover the full amount of the order.
If she has property, you can get a chargeagainst the property, but that might be a bit long winded and you then need afurther application to try to force a sale of the property to bring her to hersenses. You would need the first charge lenders cooperation and no doubt thehusband would defend it.
As this debt is not in dispute, you couldactually issue a Statutory Demand (which is free), which means that they haveto make an application to court to set it aside in 21 days on the basis thatthey do not owe the money. If they do not apply to set it aside and do not payyou, you can then make an application for personal bankruptcy and the trusteein bankruptcy will then pay you out of any proceeds of bankruptcy. The trusteein bankruptcy would deal with the sale of their house. The bankruptcy petitionwill cost you in the region of £2000 by the time it gets to court and there isno guarantee that you would get that back if they have no money or assets.
Sometimes, the statutory demand alone wakespeople up the possibility of personal bankruptcy and might prompt them intoaction
Can I help further?
CanI help further?
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Thank you for your suggestions. I need to digest your answer. I really would like only a form of security, I do not wish to cause any bad feeling regarding this loan but as it has been going on for so long with no positive action I feel that something should be done in order to try and recover it or to obtain some form of security from her that this money will be paid back when her property is sold. Of course, she may not ever sell her property so I am not sure where I stand then! I don't think I really want to lay out any large sums of money at this time with no guarantee of the loan repayment being made, so I will read your reply and consider my options on this. Many thanks for your assistance.
Unfortunately,they don't seem so concerned about not having bad feeling with you.!
Ifthey will not agree to grant you the charge, you are faced with the to courtapplications, the first to get a judgement and the second for a charging orderagainst her half share.