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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71135
Experience:  Over 5 years in practice
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I borrowed money from someone that I considered a friend. I

Customer Question

I borrowed money from someone that I considered a friend. I later realised that the only reason he was assisting was with a view to our relationship becoming sexual, something which I had no interest in not only because he was married. There were several emails to and forth before he lent me the monies and it was all quite laid back. The loan agreement was not signed until year after he loaned me the money. I rather foolishly allowed him to put a charge on my house and he has now commenced possession proceedings. I never really understood the terms of the loan but at the time almost felt presurised into allowing him to assist. Admittedly I have not kept up to date with the payments as he full well knew I would struggle and once he realised that I would not accept him groping me he turned against me and I am now worried that I will be made homeless along with my 2 children
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Thank you for your question. My name is ***** ***** I will try to help with this.
I wouldn't worry about agreeing to the charge. He would have got that anyway.
If there is a charge and you are not paying then he can apply for an order for sale of the house. He will only really get that if you make no efforts to pay at all. Courts will only grant orders for sale as a very last resort.
If you do bury your head in the sand though then there will be an order for sale whether or not it will make you homeless.
However, if you make efforts at this stage to pay then a court will almost certainly give you time to do so.
From a tactical point of view, I wouldn't put this on the basis that he was making advances. I'm afraid that some women do use things like that as an excuse and I notice increasingly that courts are becoming annoyed with it. Similarly not understanding the loan or not signing. If you had the money you have to pay it back. You don't want them to think you are being a victim. If you take control even at this stage then it will probably be avoided.
Can I clarify anything for you?
Customer: replied 3 years ago.

I understand the points that you have raised but just wanted to give you a full background. I need to complete the defence form and send it to the court within 14 days. I cannot afford the monthly amount that he is requesting, will the judge be able to set a more realistic amount. I am nervous as we are due in court on 4/2/15, he is a powerful wealthy man and without sounding like a "victim" I cannot afford a solicitor to represent me. I am worried that his solicitor will have me laughed out of court. Also will I end up with a CCJ?

Expert:  Jo C. replied 3 years ago.
It depends how much the judgment is and what you can afford but the Judge will consider sensible offers.
You do have a CCJ already if there is a charge on your house.
There is one single issue here. That is how much can you afford to pay. The Judge will not entertain anything else. The fact that you haven't paid will go against you but if you start paying now that may repair the situation.
Customer: replied 3 years ago.

I definitely do not have a CCJ, I allowed him to place a charge on the house.

The loan amount is in excess of £100,000.

Just to clarify who will decide what I should pay the claimant or the Judge? If the judge states an amount which the claimant does not accept can he refuse the Judges recommendation?

So assuming I do not already have a CCJ if the hearing goes in my favour and the Judge accepts my repayment proposals will I then have a CCJ?

Expert:  Jo C. replied 3 years ago.
The claimant seeks an amount and the Judge decides the sum that can be afforded.
This can't be a charing order without a CCJ.
It could have been a legal charge if you agreed voluntarily but it doesn't change your position really.
If it is the latter then it won't be a CCJ but it is damaging to your credit rating.
Customer: replied 3 years ago.

I have checked and it is a legal charge. If it is not a CCJ how does it damage my credit rating?

Is there anything that I should I bear in mind when completing the defence form?

When if ever is a loan unenforcable?

Expert:  Jo C. replied 3 years ago.
1 It is a finding that you have not managed your finances.
2 I am not sure you really can complete the defence form. You owe the money. All you can really set down is that you are wiling to pay and make X offer.
3 A loan could be unenforceable for lots of reasons. It is not often unenforceable entirely. In this case, if he can prove that there was a transaction then a court was not ever going to find that there wasn't an agreement to repay. People do buy each other expensive gifts all the time but they don't usually make transfers of over £100k I'm afraid.
Customer: replied 3 years ago.

Are you suggesting that I should not fill out the defence form?

The form that has arrived with paperwork states that I should fill in the defence form

Expert:  Jo C. replied 3 years ago.
This is a possession hearing?
You should have a form offering you the chance to admit all of it or part of it or defend.
You need to admit it but make an offer to pay monthly and seek a suspended order for sale. It needs to be a substantial offer.
Alternatively you can seek a deferred possession order if you can pay £50k or thereabouts within 28 days.
Customer: replied 3 years ago.

When you a substantial offer roughly what amount? I certainly cannot agree to anywhere near £50,000

Expert:  Jo C. replied 3 years ago.
They are probably going to want this paid off within 3 years. Maybe a bit over.