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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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i need to set about formalizing a large amount of money owed

Resolved Question:

i need to set about formalizing a large amount of money owed to me by a former friend. i have his commitment informally in writing in the form of emails but, as he changed his circumstances recently and unexpectedly, i fear he is trying to get away from paying back. i have sent emails, text messages etc..but i have received no response. i sent several explanatory messages asking for a reply or rebuttal. nothing. i know he does not ahev the money now but he can start repaying some and we can set about formalising the rest . i do not know if i have enough evidence to force him to formalise it
many thx
Submitted: 2 years ago.
Category: Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello,

How much are you owed and what are the terms e.g. repayment period, interest rate?
Customer: replied 2 years ago.

the debt is in excess of £120,000 borrowed over four years. the purpose of the loan was paying monthly debts and use some amounts to do FOREX trading. the individual placed the interest to me in writing as 250% ( a ridiculously high amount) that was intended to be paid in teh future. he once stated 'even i pay you five years from now'; that was two years ago.

this person works as financial controller for a london based retailer now. he has been on the job only 2 months.

i understand he may not have the total of the funds to return. he has however made no attempt to contact me on this matter. i have sent numerous emails and texts trying to firm up an agreement. i have had no response.

a drastic change of his circumstances is that he just got engaged to a non EU national and i fear he may leave the country at some point soon

Expert:  UKSolicitorJA replied 2 years ago.
Thank you.

You may enter into a formal loan agreement with this person and use this template creater:

http://www.lawdepot.co.uk/contracts/loan-agreement/?loc=GB

If the person fails to repay your money ot avoids you, you may make a court claim against them for the money and obtain judgement from the court against them.

However, you will have a difficult time getting anything out of the person if they do not have any assets in their name.

May I help further?
Customer: replied 2 years ago.

i think the bot***** *****ne of what i want to know is whether it is time for me to get a law firm involved for advice. the case is tenuous even in my eyes as this person and i had a very informal agreement. is it best that i consult a lawyer or do i try a mediation service for example? the amount is too big for me not to act immediately.

many thx

Expert:  UKSolicitorJA replied 2 years ago.
You may appoint a law firm but this will cost you money and there is a risk of you throwing good money after bad money unless you can get a law firm to act on a no win no fee basis such that they receive a percentage of any money which they can recover from this person.

Mediation will only work if the person comes to the table freely, if they are not responding to you, it is unlikely they will agree to mediate.

The other option is to appoint a debt collector to go after this person on a commission basis.

Another option is for you to take direct court action against this person.

Hope this helps
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