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Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
May I ask if you made any written agreement with your sister please or was the agreement made verbally?
hi there it was only made verbally but was witnessed by my other sister
Thanks. From what you say your sister made some payments to you. When did she start and finish these payments roughly and how much was paid each month?
hi she started the payments in feb 2014 and has just decided to not me this month for either the loan or phone contract and she has informed me she wont be paying me anymore
Thanks. Lastly how much roughly is outstanding to you?
hi sorry my sister has been paying £134 per month for the loan and £49 a month for the mobile contract currently outstanding including interest on the loan and the phone contract i believe its around £4000
based upon what you say, you have no written agreement however you do have evidence of agreement by "course of dealing". In other words, you can evidence the agreement made based on movement of money and repayments you have already received. If you have an email so associated messages a correspondence that evidene any agreements made, these can also be presented to allow a court to construct the likely agreement made between you.
In terms of how to proceed, the first step is to formally notify your sister in writing that she is in breach of your agreement (briefly setting out the terms of the agreement mentioning the amounts lent, the payments she was supposed to make, payments made and payments owed) and advising her that following breach of your agreement you require repayment of the amount owed (plus interest if interest was agreed) within 7 or 14 days.
If she does not respond you can either serve her with a statutory demand which is a warning you may apply to make her bankrupt (you do not have to follow through) if she does not pay or does not formally apply to set aside the statutory demand at court. This can be a good shock strategy as it is relatively easy for you to do and can avoid a court hearing to obtain judgement. It can work for people who are keen to avoid being made bankrupt and do not have any particular defence to the amount claimed.
You can serve a statutory demand using this form:https://www.gov.uk/government/publications/statutory-demand-debt-for-liquidated-sum-payable-immediately-form-61
Alternatively you can issue a claim in the county court using the small claims online issuing service:https://www.moneyclaim.gov.uk/web/mcol/welcome
You can claim interest at 8% on money owed from the date it was owed under s69 County Courts Act and you can also claim court fees you incur providing you are successful.
From there you can if necessary enforce your judgement using baliffs, deduction from her bank accounts, charging orders against her property and so on should she refuse to pay following judgement.
am i legally allowed to remove my property from the business ??
Not without a court order or her consent. You could seek to hold a lien over any property you already have in your possession but not seize hers without a court order. In order to seize her property you would either a) need to make her bankrupt which means that ost of her property will transfer to an administrator who will then sell it to pay her debtors including you or b) you will need to obtain judgement in the small claims court and then apply for a warrant for bailiffs to attend to seize her property on your behalf.
perfect thank you
I hope you are able to recover your monies with the minimum of fuss. If I can assist any further as the situation develops please do not hesitate to revert to me
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