, Thank you question and welcome. My name is ***** ***** I will assist you. Can you tell me in what circumstance the debt has arisen? Does the couple have any assets in England?
Kind regards AH
The male of the couple is the nephew of my wife. They both lost their businesses in 2009 and he was bankrupt. Over 13 months we loaned them £40k. They have no assets in England as far as i know. Thet moved to Jersey in Oct 2013.
, Thank you. Did you lend him the money when he was bankrupt?
I dont know how long the bankruptcy was in place..
, Thank you. Did you lend them the money under a loan agreement or was it just a straight transfer of cash to their account? Kind regards AJ
25K WAS IN CHEQUES. The rest in cash. They have not tried to deny the debt and e mails will confirm this.
I should also add that the DWP and Housing Benefit persued them repayment because of the loan.
Thank you. Do you have a service address in Jersey or the UK? Kind regards AJ
I have their Jersey address and their home and mobile numbers.
Thank you. It is a very difficult situation because if they have no money or assets but have an income you do not want to push them too hard, because if they bankrupt (again) then they will never have to repay you.
On that basis your only options are:
(i) Take them to court and obtain a Judgment - at least that way you have the comfort that you wont have to prove you are a creditor;
(ii) Put pressure on them by saying you will take them to court - use this as leverage to get them to sign a forebearance deed
This will be an agreement whereby you promise not to sue them if they in return acknowledge the debt and agree to a repayment plan.
Unless you know of any assets they own enforcement is not really an option at this stage.
Ideally if they owned their own home you could use this to secure the debt.
Are they simply ignoring your emails? If that is the case you may wish to consider sending them a solicitors letter - this might prompt them into actually taking action and agreeing a repayment plan with you.
I look forward to hearing from you. Kind regards AJ
Thanks as far as i know they will have earnings but no house. Knowing them they will have an expensive car!! I understand the option 1 issue. Yes they are ignoring my e mails and i know the 14/1 e mail was received and read. I think a solicitors letter is probably the safest first step. Advice on this please.
, Thank you. On the basis that you wont actually sue them, then sending them a formal demand from a solicitor is important following reasons:
(i) If you send them the cheque stubs and proof the monies were loaned to them it creates an evidence chain that can be used in court;
(ii) Receiving a formal demand from a solicitor gives the added gravitas that you have been advised and should be taken seriously.
(iii) It will allow you to comply with any civil procedure that may require you to give notice prior to commencing proceedings.
So i would need a Jersey solicitor to write a letter or can i use a local one in Northumberland?
, Thank you. If you have already in Northumberland, you could use this solicitor to make a demand - but bare in mind if push comes to shove and you need to sue them you will at that point need a Jersey Solicitor.
*If you have a solicitor already in Northumberland
is this a service you can offer or are you limited to advice on line?
, Thank you. I am afraid we cannot write letters or draft documents. Really the letter should come from an instructed solicitor as they have the benefit of indemnity insurance if anything goes wrong. Kind regards AJ
Ok is that us finished?
Sorry one more question. If he declares himself bankrupt which is what he did last time what happens to my debt?
. Thank you. I am still available.
Unfortunately if he goes bankrupt then you will just become an unsecured creditor of his estate.
When he (they) are discharged from bankruptcy the debt will be wiped.
OK thanks i think i will be more careful in future.