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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71038
Experience:  Over 5 years in practice
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last year i stood as guarantor for a loan for a(then)business

Customer Question

last year i stood as guarantor for a loan for a(then)business partner.As soon as he received the money he quit the company and has not paid any of the loan repayments leaving me to foot the bill.I have been told that i should contact a solicitor about a default judgement.Can anyone help
Submitted: 4 years ago.
Category: Law
Expert:  Jo C. replied 4 years ago.

Thank you for your question . My name is Jo and I will try to help with this.

In order to give you an answer tailored to your circumstances, I will just need to ask you some preliminary questions so that I can consider your position from all angles.

How much was the loan for?
Customer: replied 4 years ago.

the loan was for £5000.00

Expert:  Jo C. replied 4 years ago.
Ok. Thanks.

What would you like to know about default judgments?
Customer: replied 4 years ago.
I know nothing about this that is why I'm asking your advice
Expert:  Jo C. replied 4 years ago.
Ok. But in relation to what? What is your question about defaults?
Customer: replied 4 years ago.
Could you please just advise me on how I get the man who borrowed the money to make the payments
Expert:  Jo C. replied 4 years ago.
Ok. Was this a personal loan for him or a loan to the business?

If theatre, was the company limited?
Customer: replied 4 years ago.
A personal loan
Expert:  Jo C. replied 4 years ago.


If its a personal loan and you have had to pay out upon it then the recovery is simple enough. You can sue him here

If he has disappeared into the atmosphere and you do not have his current address then you can use a tracing agent to locate him. It will cost about £50-£100 and you may well be able to recover that at court. There will be no difficulty finding him. Most people can be located within 24-48 hours.

It is worth sending him a letter before action first giving him 28 days to make payment. He will almost certainly ignore that but it will protect you from the argument at court that you have failed to negotiate.

If that fails then just issue against him. Given that this is £5 k when costs and interests are added it will slightly exceed the small claims court arena. That will mean that it will be allocated to the fast track which will mean costs a re an issue. You can reclaim them from him but you have to pay at the outset and obviously some defendants are more likely to pay than others. You can both consent to it song allocated to the small claims court which might well assist you here.

In relation to judgment in default, I'm not sure how there could be be against you since you are making payments.

Hope this helps. Please let me know if you need more information