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JGM, Solicitor
Category: Law
Satisfied Customers: 12067
Experience:  30 years as a practising solicitor.
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I have lent money to a person to the tune of £10,600. Because

Customer Question

I have lent money to a person to the tune of £10,600. Because he was a friend and had a business I never got anything written up. He now looks like he is going under. Probably be declaring bankruptcy very soon. Is there something I can get written up fir him to sign this late in the day?
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
You can do so, but if he is going to go bankrupt you will not have any priority over other creditors. You will rank along with other ordinary creditors and may only get a dividend, or indeed nothing, back from the bankruptcy. It all depends on the extent and type of other debts he has.
Happy to discuss.
Please leave a positive response so that I am credited for my time.
Customer: replied 2 years ago.
So if he does go bankrupt there's no chance of getting anything back? I know he owns a house joint mortgage with his wife what would happen to that? Also he owns a dealership and sold a few vehicles on behalf of me. I have a feeling he has sold them with out giving me the cash he says he hasn't but its looking that way. Is that classed as theft and should I inform the police if this is the case.
Expert:  JGM replied 2 years ago.
If he goes bankrupt, it depends what his net assets are whether you or any other creditors get anything back.
His house would in all likelihood be sold and his half share of the net equity used to pay his debts. It depends if there is any real equity in the house whether it's viable to sell it, especially if his wife owns half of it.
Not sure what you mean by "I have a feeling he has sold them without giving me the cash....." He either has or he hasn't. If he hasn't then whilst this could be fraud in certain factual circumstances, it is more than likely that the police will tell you this is a civil matter and not a criminal one. In any event informing the police won't get your money back I'm afraid.
I'm sorry you're in this situation but I don't think there is an easy way to get your money back unless he can stay solvent and repay you in instalments.