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