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Jamie-Law
Jamie-Law, Solicitor
Category: Law
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Experience:  Solicitor
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My parents loaned money to their nephew as start up capital

Resolved Question:

Hi,
My parents loaned money to their nephew as start up capital for his business. However, my parents have been asking for their money to be returned for over a year but the nephew keeps fabricating different stories to cover his tracks and delay return of cash. We do have a signed contract to say that investment capital has been loaned to him under his companies name but he has since dissolved the company.
He is constantly telling us lies, arranging meetings then not showing up. Not answering phone calls or messages and keeps moving to different cities to avoid being caught.
My main question is what kind of legal action can we take against him to assert pressure? Is our contract still valid even if the company no longer exists? If not, can we assert police pressure based on the issue of his lies? What kind of legal action can we persue?
Thank you
Submitted: 11 months ago.
Category: Law
Expert:  Jamie-Law replied 11 months ago.

You need to write and set out your losses and request a refund 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 refund 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/n1-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.

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 11 months ago.
The total amount loaned was £35 thousand, of which he has returned some. Remaining sum owed is £26 thousand. So clearly we would need representation for trial. Can you give me a general figure of how long a trial of this nature can take and how much we'd have to pay for court and representation? My family, understandably do not wish to pay out any more for this situation. Please advise, many thanks.
Expert:  Jamie-Law replied 11 months ago.

If not contested 2 weeks. If contested up to 6 months.

How much - around £15,000 - but you could get those costs back if you win

Does that clarify?

Customer: replied 11 months ago.
it does clarify. Unfortunately, we don't have that many funds to contest at trial and there it is not definite that we would win because he would show that he has zero finance and no way of repaying. Too big a risk to take and lose. Is there no other way at all to take action and assert pressure?
Expert:  Jamie-Law replied 11 months ago.

Sadly not. A Solicitor letter maybe?
Does that clarify?

Customer: replied 11 months ago.
He would simply laugh at a solicitors letter and tear it up. Sadly, people have plenty of courage for fraud. No threat is big enough. Thank you anyway.
Expert:  Jamie-Law replied 11 months ago.

Im sorry its not better news. If this answers your question could I invite you to rate my answer before you go today, otherwise the site doesn’t pay me for the time spent with you. Thanks in advance!

Customer: replied 11 months ago.
Last question, if the court sends him a claim and he does not defend it. You said you can enter judgement and enforce. sorry, can you explain that further. I don't quite understand what that means
Expert:  Jamie-Law replied 11 months ago.

Make him bankrupt, sending in bailiffs, get a charge on property he owns, freeze money in bank account.

Does that clarify?

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Customer: replied 11 months ago.
Thank you.
Expert:  Jamie-Law replied 11 months ago.

All the best.