Hello my name is ***** ***** I will help you with this.
How much was lent and how much is outstanding please?
£250k original sum; paid back £115k ; remaining £135k plus interest payment of around £24k and penalty payment of £25k
In the event of default does it allow you to sue for the balance or just arrears?
Does he have any assets please?
The agreement was between his firm and my firm. But he and his partner are personal guarantors also. There is no clause on default in the agreement
Yes, he does have assets - his company assets as well as his personal assets
You have two options
1) Ask for a charge on assets such as property. This is preferred as this secures the debt
You can ask for a charge on the accountant property, if any and also as guarantors the personal homes
This is the best and cheapest option
Otherwise you need to write and set out your losses and request a payment within 14 days or say you will go to Court within 14 days. You should make sure you send this recorded delivery and keep a copy.
If they do not pay you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.
You can also seek to claim interest at 8% pursuant to the County Courts Act 1984
The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce. This can include a charge etc.
If the matter is defended it will be set down for a trial. As the claim is for £10,000 or less it will be a small claim and you will need representation.
I have set out the penalty as £1000/day for every business day he delays by...
However you can issue against the Company and the guarantors at the same time
Can I clarify anything for you about this today please?
sorry, the claim is for £135,000 plus £24,000 odd interest plus £25,000 penalty payments thus far
Ok - the Court may have an issue of you claiming interest on late payments and a penalty.
But first see if they agree to a charge.
This is the best option
But, I want the money back for my business as I had only lent it on a 2 week period. Having a charge is of little value to me..
Ok - but if they dont have the cash then even if you get Judgement you still have the same problem getting the physical cash
Unless they have it sat in their bank account then you would have a paper Judgment
You would still have to enforce it
I think that they do have the cash ....
but sitting in a Singapore account
Ok - well issue proceedings against all 3 after having called in the loan and arrears.
Can I clarify anything else for you about this today please?
so, basically, the best option is still to continue to talk with them to get back the money rather that go to court - would that sum up the situaton?
I really would consider a charge, because that's easier to enforce
And you don't need a CCJ
You can go straight for an order for sale
And it makes the debt secure
That's a real key - but it is a matter for you
Can I clarify anything else for you?
OK, I understand. thanks
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