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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I leant some friends money when they started a business through

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I leant some friends money when they started a business through a personal loan promissory note, the security on the note is stock, fixtures/fittings associated with the business ( all written out correctly ) they have not repaid the loan in full but are now looking at declaring insolvency. Where do I stand as to the security on my loan, they have breeched the terms of the repayments in the past but I've let them get away with it but I think if they go insolvent they won't pay me back anymore money as they'll say they haven't got it. ( we're no longer as good friends as we were ). Can I collect the security before they go insolvent?
Hello my name is ***** ***** I will help you.
How much is owing? Did you lend it personally or to the business? Is it secured on anything?
Customer: replied 2 years ago.
I initially leant £10,000 and there is £1900 outstanding, I leant it to them personally and the security is stock from their business.
You need to write and set out your losses and request a payment 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 pay you then you can issue proceedings in the County Court. You can either do this online at: or by completing form N1 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. You can get a Court order making your debt secure against the stock, which means they can't dispose of it.
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 2 years ago.
So I can not collet the items secured against the loan without going to court first?
No. They don't belong to you, they are security that's it. You must get a court order.
I am sorry.
Ash and other Law Specialists are ready to help you
I am just following up to see if there is anything else I can help with?
If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.
If you need more help please click reply.
Customer: replied 2 years ago.
I apologise I hadn't rated your answer, I willdo shortly, one last point, should I contact the liquidator to let them know I have a security interest in the stock.
Yes I would.
Thanks again.