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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3522
Experience:  Solicitors 2 years plus PQE
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I have a question about jurisdiction. A loan agreement entered

Customer Question

I have a question about jurisdiction. A loan agreement entered into in Dubai, the money paid in UAE dirhams and settlements made in UAE Dirhams. The debtor has defaulted and is no longer living in Dubai. Has moved to Zambia. But the loan agreement makes the agreement subject to the laws of England and Wales. The debtor owns a 50% share in property in the UK but does not live in it. Can action against the debtor under the loan agreement be taken in the UK. Can jurisdiction become a technical problems for enforcements. Thanks
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Alex J. :

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you.

Alex J. :

Yes you will be able to take action in the UK if that is the Jurisdiction clause.

Alex J. :

You may have to seek permission of the court to serve this individual in another jurisdiction under Civil Procedure Rule Part 6 which may add to the expense but you can recover these costs if you are successful.

Alex J. :

Once you have a Judgment you will be able to seek a charging order over his share of the property and secure the debt.

Alex J. :

Do you have any further information?

JACUSTOMER-x5b3hxtm- :

My husband is the debtor. I live in the UK. He lives and works in Zambia. We lived in Dubai for 9 years where my husband's business failed and he incurred large debts, for which he is personally liable. A demand for a debt has been delivered to my house and I was wondering about jurisdiction, which you have kindly answered. The creditor is threatening legal action, including bankruptcy proceedings. My husband's equity in the house will not be sufficient to discharge all his liabilities and our mortgagee HSBC, has a secured claim which will leave an insufficient balance for distribution to creditors. I will fight the sale of the house. My question now is how to deal with the letter - my husband is taking advice in Zambia and may offer a settlement plan through his company. My concern is how to answer the letter - addressed to my husband only. Do I (1) ignore it and let my husband deal with it or (2) send short response saying husband lives and works in Zambia and provide his address? or (3) write a fuller letter explaining that I was unaware of the debt until the letter arrived (which is the case - my husband has hidden his financial difficulties from me) and give some information on our situation with a view to deferring any legal action? The creditor is best place to wait for my husband's work in Zambia to start delivering income , which it now is, rather than throwing good money after bad through legal proceedings.

Alex J. :

Thank you

Alex J., Solicitor
Category: Law
Satisfied Customers: 3522
Experience: Solicitors 2 years plus PQE
Alex J. and other Law Specialists are ready to help you
Customer: replied 2 years ago.

ustomer:


My husband is the debtor. I live in the UK. He lives and works in Zambia. We lived in Dubai for 9 years where my husband's business failed and he incurred large debts, for which he is personally liable. A demand for a debt has been delivered to my house and I was wondering about jurisdiction, which you have kindly answered. The creditor is threatening legal action, including BANKRUPTCY proceedings. My husband's equity in the house will not be sufficient to discharge all his liabilities and our mortgagee HSBC, has a secured claim which will leave an insufficient balance for distribution to creditors. I will fight the sale of the house. My question now is how to deal with the letter - my husband is taking advice in Zambia and may offer a settlement plan through his company. My concern is how to answer the letter - addressed to my husband only. Do I (1) ignore it and let my husband deal with it or (2) send short response saying husband lives and works in Zambia and provide his address? or (3) write a fuller letter explaining that I was unaware of the debt until the letter arrived (which is the case - my husband has hidden his financial difficulties from me) and give some information on our situation with a view to deferring any legal action? The creditor is best place to wait for my husband's work in Zambia to start delivering income , which it now is, rather than throwing good money after bad through legal proceedings.

Expert:  Alex J. replied 2 years ago.
Thank you.
You cannot be held liable for your husbands debts. Also the debtor wont be able to force a sale of your house as you are the joint owner. They would have to wait for the mortgage company to force the sale.
Can you still afford the mortgage each month?
Kind regards
AJ
Customer: replied 2 years ago.

Yes, we are servicing our personal debts and mortgage. The business debts are causing huge personal, financial and marital stress. I think i might sever my joint tenancy on the property so that if I die my kids will get my share. But what would be a smart way to deal with the demand? It is not my nature to run from problems and my inclination is acknowledge the letter and give them my husband's address in Zambia. Must I refuse to accept any proceedings served at this address?

Customer: replied 2 years ago.

Yes, we are servicing our PERSONAL DEBTS and mortgage. The business debts are causing huge personal, financial and marital stress. I think i might sever my joint tenancy on the property so that if I die my kids will get my share. But what would be a smart way to deal with the demand? It is not my nature to run from problems and my inclination is acknowledge the letter and give them my husband's address in Zambia. Must I refuse to accept any proceedings served at this address?

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Is the demand to you personally? Did you accept liability for the business debts?
What address for service did your husband give on the loan document?
Kind regards
AJ
Customer: replied 2 years ago.

I did not accept any liability for my husband's business debts. I did know this particular debt existed until the letter arrived. The demand is on my husband personally.

I am not sure what address my husband nominated - if it was my home address, does that have legal implications. I have asked my husband. Our UK home address would have been easily accessible to the creditor as it would be recorded on our Dubai Residency visa, which the creditor would have had a copy of.

Alternatively, an address in Dubai would have been used which is not longer where he/we live/s.

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
I would suggest the following.
If the demand is not on you, I would not respond. Send it to your husband and let him deal with it.
If you start receiving notices regarding a charging order you should attend the hearing.
If you have children under 18 in the house, categorically they will not be able to get a possession order.
If they harass you for the money write to them and say that this is a criminal offence in the UK to demand money from someone that does not owe it under S.40 of the Administration of Justice Act 1970.
Kind regards
AJ
Customer: replied 2 years ago.

My children are 18 and 20 and in full time university education. They still consider this to be their home.

Thank you, ***** ***** ignore the letter. I suspect that a claim and legal proceedings may follow it. Hopefully the offer my husband is trying to get approved by his company will pre-empt legal proceedings.

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Send the letter to your husband and make sure you keep an eye out for any proceedings that are commenced against you.
Severing the Joint Tenancy maybe advisable as you have suggested.
Kind regards
AJ
Customer: replied 2 years ago.

I have decided to take your advice and not respond to the demand letter sent to my husband (I was going to give them my husband's address in Zambia). What will the next legal step be from the creditor - particulars of claim following by a default judgement if my husband does not answer that? I am scared there will be strangers at the door arriving to carry my furniture away.

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