Claiming a personal debt

paddypaws101

Not sure if I am posting this in the right section, but here goes!
I am in the un-enviable position of having to try to enforce repayment of a personal debt of 6k from an erstwhile friend.
All attempts to communicate and come to some arrangement have failed, and believe me I have tried. I am struggling to pay over draft charges on this money while my ex-friend is pulling in large amounts of money from her business.
I want to take legal action but am not sure how to proceed.
I have been told that a solicitors letter will cost around £200.....I am pretty sure that this will fall on deaf ears but dont know if I HAVE to try this first before proceeding onwards or if it can be dispensed with.
I also do not understand the difference between going to County Court or making a Money Claim Online. I presume that I would be better seeking the experienced eye of a solicitor to help me fill out forms in either situation.
Also does anyone know if I can charge these expenses to the debtor.
Thanks.

DVardysShadow

Before going much further, if you took it to court, what evidence do you have that the money was

• handed over
• a loan

RAS

You can send a letter before action without using a solicitor.

You can also pursue her in court BUT what documentation do you have to prove that she is liable to repay the money and on what terms did you lend it?

paddypaws101

I have a contract signed by her stating the amount and the agreed dates/method of repayment. Full amount was 10k and she agreed to pay back 2k per month. First payment was on time , second 2 weeks late and nothing more since then last October.
Will a judge want to see that I have sent her a formal letter of demand before a case could proceed?
Is she liable to pay expenses ( presuming judge rules in my favour )
What is difference between Money Claim Online and normal County Court?

DVardysShadow

Yes, you should send a 'letter before action' - google for expanation - giving a reasonable time for payments to be made - say 21 days.

As it is less than £15000, you can use moneyclaim on line - but just double check, the limit has only recently gone up and it may be that if the 'cause for actio' predates the change your claim might not be able to go through money claim online.

paddypaws101

Thank you, I will check with Money claim online.
But can you tell me what is the difference between this and County court? Is one better than the other for my purpose?

mrsb83_2

The County Court deals with the claim.

Money Claim Online is just a portal to make the process easier. If you can use it then do becuase the process is streamlined. You should contact your local county court for any literature they can offer about making a claim.

elaine12022

Getting a judgment in your favour & getting the money are two different things also. I would suggest looking into how you would be able (if at all) to enforce any Judgment against her (by the sounds of it she'd be silly not to pay as if she's got a business having a CCJ could seriously affect her, surely?)

smartiedriver_2

elaine12022 wrote: »

Getting a judgment in your favour & getting the money are two different things also. I would suggest looking into how you would be able (if at all) to enforce any Judgment against her (by the sounds of it she'd be silly not to pay as if she's got a business having a CCJ could seriously affect her, surely?)

If she is a company director then yes, it will have a severe impact on the business's ability to get credit. She would most likely have to resign as a Director.

If she is a sole trader then the business is effectively the same legal entity so again, she would have difficulty getting credit, BUT if she didn't need any credit, it would have no impact at all, as she wouldn't appear on company searches (they don't exist for sole traders) and wouldn't be answerable to any shareholders.

paddypaws101

elaine12022 wrote: »

Getting a judgment in your favour & getting the money are two different things also. I would suggest looking into how you would be able (if at all) to enforce any Judgment against her (by the sounds of it she'd be silly not to pay as if she's got a business having a CCJ could seriously affect her, surely?)

I do understand this to be the issue.....and thought that the whole point of going to County court was that the judge could enforce payment through seizure of assets/bailiffs? ( she has a very swanky flat in Wimbledon and a credit check showed that she DOES have money banked )
Yes, I would have hoped that the threat of a CCJ would be enough to persuade her to pay up as surely future credit would be made difficult with this on record.