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Loan question

Helli2020
Helli2020 Posts: 19 Forumite
Unsecured loans personal or business, what can the banks do to reclaim this money if its never repaid?

Comments

  • Helli2020
    Helli2020 Posts: 19 Forumite
    and before anyone gets scared haha i am asking for a friend of mine who got a £30,000 loan out sometime ago and is now struggling with repayment and thinks as its unsecured he will get away with it!

    Feedback welcome
  • KingElvis
    KingElvis Posts: 4,100 Forumite
    30k unsecured? wow

    They will take you to court and if you're truly skint you can pay it back at £1 a week or something. That makes your paid up date sometime in 2284 I think LOL
    "We want the finest wines available to humanity, we want them here, and we want them now!"
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    make them bankrupt
  • No such thing as an unsecured loan if you actually have assets. If they go to court, the courts can make you sell your assets to pay the debt, just like any other unpaid debt. It's only truly unsecured if you don't own anything, in which case, it goes to court and you offer to pay £1 a week. The lender will be reluctant to do this though as once this happens they can no longer charge any interest on the figure agreed by the court.
  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    If your friend owns a house a charging order can be imposed even if the debt is 'unsecured'.
    I used to think that good grammar is important, but now I know that good wine is importanter.
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