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Stuart J
Stuart J, Solicitor
Category: Law
Satisfied Customers: 22401
Experience:  PGD Law. 20 years legal profession, 6 as partner in High Street Practice
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How can I obtain some form of security for a loan of £10,000

Customer Question

How can I obtain some form of security for a loan of £10,000 made to a friend six years ago?
Submitted: 3 years ago.
Category: Law
Expert:  Stuart J replied 3 years ago.

Is she not paying?

Does she have a house? Can we have background please?

Customer: replied 3 years ago.

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.

Customer: replied 3 years ago.
Relist: Other.
I would like an answer to my question as soon as possible please.
Expert:  Stuart J replied 3 years ago.


I'm afraid that this is not an
instant service because we all have other users and clients and court and
evenings and travelling and weekends so sometimes you will get a response in
minutes and sometimes it will be hours. The site is hosted in the United
States. We are all based in the UK. We are all practising UK lawyers. If the
site had their way, questions would be answered in nanoseconds, and we would
deal with them in nanoseconds, but sometimes it is just not feasible.

In which case, presumably you
would prefer to be repaid or if they do not have the money to repay you, you
would like a charge against their property.



The first thing to do is to
take her to court to get a judgement in respect of the money. If you then don't
get paid, you make a further application to court to enforce the judgement.



You can do that in several
ways.



You can apply for an attachment of earnings order. An attachment of earnings order is only any good if he is
employed because that is an order for an employer to pay money to you directly
from his wages.



The third party debtor order is an order for
someone else (the bank, for example) to pay money to you directly. But, there
must be enough money in his account to cover the full amount of the order.



If she has property, you can get a charge
against the property, but that might be a bit long winded and you then need a
further application to try to force a sale of the property to bring her to her
senses. You would need the first charge lenders cooperation and no doubt the
husband would defend it.





As this debt is not in dispute, you could
actually issue a Statutory Demand (which is free), which means that they have
to make an application to court to set it aside in 21 days on the basis that
they do not owe the money. If they do not apply to set it aside and do not pay
you, you can then make an application for personal bankruptcy and the trustee
in bankruptcy will then pay you out of any proceeds of bankruptcy. The trustee
in bankruptcy would deal with the sale of their house. The bankruptcy petition
will cost you in the region of £2000 by the time it gets to court and there is
no guarantee that you would get that back if they have no money or assets.





Sometimes, the statutory demand alone wakes
people up the possibility of personal bankruptcy and might prompt them into
action





Can I help further?





Can
I help further?

Please bear with me today and over weekend because I will
be online and off-line.

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If in ratings you feel that you expected more or it only helped a little,
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paid at all for my time and answer.

The thread remains open for us to continue this exchange





Stuart J, Solicitor
Category: Law
Satisfied Customers: 22401
Experience: PGD Law. 20 years legal profession, 6 as partner in High Street Practice
Stuart J and 3 other Law Specialists are ready to help you
Customer: replied 3 years ago.

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.

Expert:  Stuart J replied 3 years ago.




Unfortunately,
they don't seem so concerned about not having bad feeling with you.!

If
they will not agree to grant you the charge, you are faced with the to court
applications, the first to get a judgement and the second for a charging order
against her half share.



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