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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11431
Experience:  30 years as a practising solicitor.
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I loaned a "friend/colleague" £6,300 for (alleged) arrears

Customer Question

I loaned a "friend/colleague" £6,300 for (alleged) arrears of mortgage when she said her house was being repossessed in Nov 2010. In fact, it was to pay her children's private school fees.
In Jan 2012 I initiated legal action to recover the amount. A conjoined arrestment was put in place Dec 2012. I had received approx. £1,100 to Aug 2014.
I've now received a letter from my lawyer stating that her property has been sequestered from Feb 2014 and I have to repay £535 into her assets for monies I received from Feb-Aug (as part of the arrestment arrangement) being the total amount from when the application was made to the date that the court order was recorded.
What are my rights? I asked my lawyer to lodge a Secure Charge against her property. Can this be done?
Submitted: 2 years ago.
Category: Scots Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
What do you mean by a secured charge? Do you mean a standard security.
Customer: replied 2 years ago.
I think it's a term/action that can be applied in England and Wales but not sure if in Scots Law. Or whether it can be applied after sequestration.
Expert:  JGM replied 2 years ago.
It has no meaning in Scots law.
Customer: replied 2 years ago.
So.......what are my rights?
Expert:  JGM replied 2 years ago.
You will rank along with all the other ordinary creditors for the amount owing to you. It is too late for the debtor to grant security. In addition, the amount paid to you post sequestration can be reclaimed by the trustee in sequestration as an illegal preference.