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JimLawyer, Solicitor
Category: Law
Satisfied Customers: 14308
Experience:  Senior Associate Solicitor
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I applied for an asset loan back in November 2019 for a

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Hi, I applied for an asset loan back in November 2019 for a start up business. My business can not open due to Covid-19 and I contacted the asset company in March explaining that I was going to be unable to make payments soon depending on this virus as it effecting my business. The company did not offer anything and said they expect payment. The first payment was missed today and they called me saying they are going reposess his property if I do not make payment.
JA: Has anything been officially filed? If so, what?
Customer: No just a conversation today.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: How can I save my guarantors home

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 1 year ago.
Happy to wait

Hello, this is Jim, a dual-qualified lawyer (UK & Republic of Ireland) and happy to help you today.

Does the contract say anything about "force majeure" or "act of God"?.

Customer: replied 1 year ago.
Hi Jim, I don't know
Customer: replied 1 year ago.
I can't afford the phone call sorry

If it does, it may allow a suspension of loan payments. Even if there is no mention then you may still be able to rely upon force majeure, due to the pandemic - if you could upload the contract today that would be great as I can review it for you. I am around this evening to do this - if you want to upload, there should be a paperclip symbol to do this

Customer: replied 1 year ago.
Thank Jim that would be great. I will upload the document.

Thanks, ***** ***** due to travel soon so as I say, it will be later today when I can get to this (unless you can upload it in the next hour as I am available until 3)

Customer: replied 1 year ago.
Hello, I have uploaded the documents

Thanks, ***** ***** see a force majeure clause but you can still rely on the pandemic as an intervening event, which has affected your ability to pay.

Most lenders offer a payment holiday due to the virus - you can ask for one with this lender. You can say to them that the current Coronavirus pandemic means that performance of a contract (such as this one) is impossible due to your business being closed. You can allege that this event is a “force majeure”, or an “Act of God”. Therefore this means that performance of the contractual terms during the period of the force majeure can therefore be suspended.

If they do issue a court case for repossession - you would have the opportunity to attend the hearing and oppose their application. Or you can use an advocate to attend the hearing for you - either way I am sure the judge would be sympathetic given the current crisis and the huge impact on businesses across the UK and worldwide. The judge may make a suspended order for a charging order on the property - meaning you have time to make up the repayments and if you default then the lender can come back to court in future.

At this stage I recommend you contact the lender, tell them you consider this to be a force majeure event - meaning you are experiencing a temporary inability to repay. And if they involve the court, this will take many months due to the current backlog of claims at the moment - and you will attend the hearing to oppose their application due to the above.

Customer: replied 1 year ago.
Hi Jim, I just got a call from them and they are looking at lowering the payments. I have been told they will call me back in an hour.

OK, thanks, ***** ***** them of the above situation with force majeure when you speak to them too

I hope this helps? If I have answered the question would you kindly leave me a 5 star rating (at the top of your screen), any follow up questions are welcomed.

Many thanks,


JimLawyer, Solicitor
Category: Law
Satisfied Customers: 14308
Experience: Senior Associate Solicitor
JimLawyer and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Thank you so much Jim.
Customer: replied 1 year ago.
Hi Jim, I was wondering if you may help me please? The Asset Loan I took out with my guarantor we never knew it was secured on his property until the day I contacted you for advice. My guarantor & I thought it was secured on the business assets. I doubt that the business can survive anymore and may need to close down for a number of reasons but is there anything I can do to release my guarantor from this asset finance agreement?

Thanks, ***** ***** note that any further questions should ideally be posted within 7 days of this one (as the original one cannot be kept open indefinitely). If you have further questions may I ask that you post a new question to the main site. It will not cost extra if you have membership. If you would like me to deal with the new question please mark it “For JIM only” and I will pick it up as soon as I can.

Many thanks

Customer: replied 1 year ago.
Ok thank you Jim