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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I leant some friends money when they started a business through

Customer Question

I leant some friends money when they started a business through a personal loan promissory note, the security on the note is stock, fixtures/fittings associated with the business ( all written out correctly ) they have not repaid the loan in full but are now looking at declaring insolvency. Where do I stand as to the security on my loan, they have breeched the terms of the repayments in the past but I've let them get away with it but I think if they go insolvent they won't pay me back anymore money as they'll say they haven't got it. ( we're no longer as good friends as we were ). Can I collect the security before they go insolvent?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you.
How much is owing? Did you lend it personally or to the business? Is it secured on anything?
Customer: replied 2 years ago.
I initially leant £10,000 and there is £1900 outstanding, I leant it to them personally and the security is stock from their business.
Expert:  Ash replied 2 years ago.
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 signed 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.
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. You can get a Court order making your debt secure against the stock, which means they can't dispose of it.
If the claim is for £10,000 or less it will be a small claim so you will not need legal representation. Over this value you would need representation for trial.
Can I clarify anything for you about this today please?
Customer: replied 2 years ago.
So I can not collet the items secured against the loan without going to court first?
Expert:  Ash replied 2 years ago.
No. They don't belong to you, they are security that's it. You must get a court order.
I am sorry.
Alex
Ash and other Law Specialists are ready to help you
Expert:  Ash replied 2 years ago.
Hi
I am just following up to see if there is anything else I can help with?
If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.
If you need more help please click reply.
Alex
Customer: replied 2 years ago.
I apologise I hadn't rated your answer, I willdo shortly, one last point, should I contact the liquidator to let them know I have a security interest in the stock.
Expert:  Ash replied 2 years ago.
Yes I would.
Thanks again.
Alex