Private Loan - Laws / Regulations?

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emma09

Guest
hi, just wondering if someone can help with this query.

A friend took a large sum of loan from a family friend and promised to pay back with interest over number of months - approx 18months.

Due to unseen economic downturn he is now unable to pay the amount. He paid roughly 60% of the original amount owed and requested the family friend to give him some time before he gets back on his feet. However, for number of months he was unable to pay him back - even small amounts and a judgement order has been put in his name and he is expected to come back with a defence. He is not sure what to do. He cannot afford a solicitor as he does not have the funds.

He wants to pay the loan but cannot afford to and cannot promise even small amounts of weekly/monthly payments to reduce the loan & interest amount. What chance, if any, he has in the court? With judgement taken out against him, his small retail business will suffer, and he will obviously still be unable to pay the loan amount?

My Question is if the money was lent to him on interest then the family friend that lent him is a money lender ... am I correct in assuming that? I am looking for some help for my friend, as he is genuinely in trouble and doesnt know what to do?
 
I posted this on another forum but didnt get any reply.. Any suggestions?.. please?

hi, just wondering if someone can help with this query.

A friend took a large sum of loan from a family friend and promised to pay back with interest over number of months - approx 18months.

Due to unseen economic downturn he is now unable to pay the amount. He paid roughly 60% of the original amount owed and requested the family friend to give him some time before he gets back on his feet. However, for number of months he was unable to pay him back - even small amounts and a judgement order has been put in his name and he is expected to come back with a defence. He is not sure what to do. He cannot afford a solicitor as he does not have the funds.

He wants to pay the loan but cannot afford to and cannot promise even small amounts of weekly/monthly payments to reduce the loan & interest amount. What chance, if any, he has in the court? With judgement taken out against him, his small retail business will suffer, and he will obviously still be unable to pay the loan amount?

My Question is if the money was lent to him on interest then the family friend that lent him is a money lender ... am I correct in assuming that? I am looking for some help for my friend, as he is genuinely in trouble and doesnt know what to do?
 
"My Question is if the money was lent to him on interest then the family friend that lent him is a money lender ... am I correct in assuming that?"

No. It was not done in the course of business. It was one friend helping another out. It has backfired badly - for both.

There does not appear to be any defence to the fact that the money is due. The problem is not that it is not due but rather that the debtor cannot pay the debt.

It is for the creditor to decide whether they pursue the judgment or not. If they do go ahead, the judgment will be marked.

mf
 
Emma 09. I will be blunt and to the point your friend got a loan from a family friend and your now looking for a legal loophole to avoid paying the balance even into the future. That is tone of your post from your last paragraph
 
Hello,

Can the two parties not come to some agreement - perhaps the person who owes the money, could offer the other party a share in their retail business or an interest in another asset, perhaps a property or similar ?

It seems a shame that two parties who originally tried to work togeather, must now go to court to resolve the issue.

Just offering some food for though.

Regards

Mr. Earl.
 
emma09 said:
I am looking for some help for my friend, as he is genuinely in trouble and doesnt know what to do?
Click to expand...

If they were friends, why is your friends seeking to put up a defence when he has no defence. Has he any asset, house, home, car he could sell to pay back his friend?
 
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