help needed as ex won't pay back money he owes me

Meusli

This is the first time i have posted anything so i hope i have posted it in the correct place. The advice is for my sister really as she has had a lot going on in her life and i really would like to help but don't know what to do.

she started in a new relationship after getting a divorce and she seemed happy with this new man, they had been together for about a year, living seperatly as they both had thier own property. Then he got into financial difficulty she went to the bank with him so he could get a loan but it was refused, so they tried to get one in both names and again it was refused so she took the loan in her name alone, she paid off his debts with the £6000 she had loaned and he paid has only paid back one payment as she left him for being unfaithful. when they split he did say to her he would still pay her but now he is just avoiding her. he has now owed this money since may. She is a single mum just about getting back on her feet after the divorce as she has paid her ex husband out of the house and is struggling to meet the payments on the loan she took. I said i would try and help her but to be honest i really do not know what to do as the loan is in her name not his and she has no written agrement with him just a verbal agreement.

it is a long shot but is there anyone tha can give me any advice?

Thanks

Savvy_Sue

Welcome to the boards!

If your sister had the good sense to draw up a written agreement with her ex in which they agreed that he would repay her £X per month, I fear she can only rely on his good nature / conscience. Which seem to have been singularly lacking so far.

Now, don't feel bad about this, but

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Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to the Loans board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

Vomityspice

So lets clarify, your sister KNEW he was having financial difficulties and still went ahead and borrowed 6K on his behalf to repay his debts?!?!?!?

To get herself out of this problem she has a number of options. 1) pay if off herself (cheap lesson on finance), 2) legally chase the money (even though it appears he is not in a position to pay..

Presuming your going with option 2, then the first thing to do is formally write to him requesting a repayment schedule to be set up within 14 days or you will issue proceedings.... Hopefully the response you receive will at least 'acknowledge the debt'. He he does not reply, then you will have to move to stage two and issue proceedings. (cost are available on moneyclaim online MCOL). From memory it will be about £250.

Then all turn up at court on the given day.He will be able to 'counter-claim' if she owed him money.

However, once you get the judgment, this doesn't mean you will get the money. Enforcing the debt is another issue. However, if he has assets that are recoverable (car, house, etc) then you have got a better change of being successful.

Additionally, having a CCJ would be a lasting reminder for him to resolve his debts as it will impact negatively on his credit rating

Meusli

Yes my sister knew he was having financial difficulty, I know how silly of her, i am quite disappointed in her to be honest as she is the sensible one out of the two of us. but never mind the damage has been done now.

I appreciate the time you have taken to reply. I will try and get a letter sorted out and hope that he will respond.

Any advice is more than welcome thanks Meusli

jonesMUFCforever

I thought Moneyclaim online was for amounts up to £5000 and the charges would be less than £250.

zzzLazyDaisy

I suggest that she writes to him enclosing a copy of the loan agreement, explaining that this loan is causing her a lot of financial difficulties, and ask him to make a contribution towards the payments - but NOT at this stage threatening court proceedings. the object is to get him to acknowledge the debt.

If he does not respond then I'd follow it up with a similar letter, but this time saying that she has taken legal advice and unless she receives his written proposals for payment of this debt within 14 days, she will have no alternative but to commence legal proceedings for the full amount of the money owed, plus interest and court costs (if she needs help drafting a formal letter, pm me).

A claim for £6000 would proceed in the county court. Depending on her circumstances she may be entitled to legal aid, in that case the solicitor will write to him on her behalf. As there is no written agreement, it will be a case of her word against his - can she show a paper trail, eg will her bank statements show a payment of £6000 into his account, or can she show payments to his creditors. Did anyone else witness any discussions between her and him about this, and would they be willing to go to court and give evidence?

If she does not qualify for legal aid, the cost and stress of going through the county court may well be prohibitive. The upper limit for the small claims court is £5000, and if she cannot get legal aid, she might want to consider limiting her claim to £5000 and going through the SCC. There are still costs but they are lower and she may be entitled to an exemption, depending on her circumstances.

If she does win her case (and there is no guarantee of that) and he still doesn't pay, she could get a charging order over his house (like a second mortgage) assuming there is equity in the property. But that is an additional cost to her, again.