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Harris
Harris, Law Specialist
Category: Law
Satisfied Customers: 2851
Experience:  Family Law - Specialist in Divorce, Financial Relief and Children Matters
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I have lent someone a substantial amount of money that they

Resolved Question:

I have lent someone a substantial amount of money that they have now defaulted on repayment, I need to issue a new loan agreement that needs to stand up in court, can anyone let me know how I legalise my agreement?
Submitted: 2 years ago.
Category: Law
Expert:  Harris replied 2 years ago.
Hi, thanks for your question. I am a qualified solicitor.
Why are you planning on issuing a new loan agreement instead of proceeding to court for a money claim for the debt? It will be the most effective method and the seller can propose a repayment plan to court if he is unable to pay the full debt. If he falls behind then it will be easier to enforce than if he were to fail to repay the new agreement you propose.
If you do not wish to pursue to court now, then ensure that the new agreement is signed in the presence of a witness who also counter-signs the agreement to confirm that they witnessed the signatures.
Please let me know if you have any further questions regarding this.
Customer: replied 2 years ago.
I entered a loan agreement back in July, the first repayment was made on time plus interest, I then entered two further agreements in Aug and Sep, payment was due end of October, the debtor failed to repay, I was told that I would receive my initial loan and interest by the end of November, debtor failed to repay. The debtor has guaranteed income paid to him Quarterly from a third party, a friend has seen site of this contract and confirms that it is real and in place until 2018, the next payment is due end of Jan 2016, I have asked the debtor to sign a new agreement Guaranteeing repayment and or to sell personal assets if he defaults again, I asked for this agreement to be signed a week ago, nothing has been returned, I want to know if he defaults again is there anything I can do legally to force the return of my capital and interest, if so how do I put this in place
Expert:  Harris replied 2 years ago.
Yes, if he defaults again then you should pursue a money claim to court which you can do online here: https://www.gov.uk/make-money-claim-online
Customer: replied 2 years ago.
It is for £170000 so I cannot go down that road, do I have any other options please Harris?
Expert:  Harris replied 2 years ago.
As the claim is for over £100,000 you will need to submit a paper application under Form N1 (here: http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf) and send it to County Court Money Claims Centre, PO Box 527, Salford, M5 0BY. The Court fee for a debt of £170,000 is 5% of the value of the claim plus interest.
However, prior to submitting an application to court you should have written a letter before action to the debtor to inform them of your option to proceed to court to reclaim the debt.
Customer: replied 2 years ago.
Harris, one final question and thank you very much for all your help, can you and will you act for me in court? if not how do I find a solicitor that can act for me and if the answer is yes, what are your fees?
Expert:  Harris replied 2 years ago.
Sorry, this service does not deal with representation, but you can search here for local solicitors: http://solicitors.lawsociety.org.uk/
You will need a solicitor who deals with general litigation.
Customer: replied 2 years ago.
Thank you Harris, really appreciate your support, Merry Christmas
Expert:  Harris replied 2 years ago.
No worries - good luck and please do come back if you have any questions in the future. I would appreciate if you could rate this response positively if you found the information helpful.
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