Loan from ex father-in-law

gb12345

Squirrel2000 wrote: »

The arrangement with your former business partner, you ex- wife, is none of your business.

That, as Tixy says, rather depends on how the loan was agreed - if there was joint and several liability then the OP has ever right to feel aggrieved that she is also not being chased for repayment of the loan.

Squirrel2000

I am sure the father in law will feel pretty aggrieved at a loss of £120k. In his shoes, if a repayment plan is not forthcoming , I certainly would place my trust in a court judgement.

manfromuncles

Squirrel2000 wrote: »

You owe a creditor a loan. The creditor kindly stood you for start up funds where others may not have demonstrated such support. The backer is no longer your father- in- law but you still owe him a debt. In my view, you should make a payment plan and stick to it. As a former in law myself, I personally would take you to court if you do not pay. The arrangement with your former business partner, you ex- wife, is none of your business. You need to focus, in my view, on your own liabilities and deal with it formally and, dare I say, honourably.

Hi. I'm not saying I refuse to pay him. I fully intend to do so. What I won't do though is be forced into paying more than I can afford. I am on a modest income and have bills to pay to keep a roof over my head and my children's heads. If you read my earlier posts you will note that I have said I will pay.

manfromuncles

Squirrel2000 wrote: »

I am sure the father in law will feel pretty aggrieved at a loss of £120k. In his shoes, if a repayment plan is not forthcoming , I certainly would place my trust in a court judgement.

Can I point out, politely, that there is a payment plan in place. I have been paying smaller amounts but they are regular payments against a loan agreement written on the back of an A4 sheet of paper with no terms and conditions at all. The current outstanding loan is approximately £25,000 so you can see from a goodwill point of view I have done my utmost to pay this off. I am just not in a position at present to pay the amount he is demanding and threatening legal action over.

I appreciate everyone's comments on here. They have gone some way to re-inforce my belief that I am doing the right thing by continuing to pay whatever I can towards this loan but that I am unlikely to be forced, in court, to pay more than I can reasonably afford. I fully intend to satisfy the loan over a period of time. It will just take longer than originally intended.

gb12345

Squirrel2000 wrote: »

I am sure the father in law will feel pretty aggrieved at a loss of £120k. In his shoes, if a repayment plan is not forthcoming , I certainly would place my trust in a court judgement.

As long as he names his daughter as a co-defendant then there is no problem is there.

iolanthe07

The OP can do no more than he is already doing, and to have got the debt down to £25K in his circumstances is admirable. The original loan agreement seems very amateurish, imho, and should have been drawn up properly by a solicitor; but things are as they are and the OP is doing his best.

Squirrel2000

You seem to have cleared a significant amount so provided you have written formally to make a reduced offer because of circumstances, that seems perfectly reasonable and you shouldn't have anything to worry about.

superbigal36

Surely if the business went into administration he should have been thrown into the creditors pot like everyone else ?

Clive_Woody

superbigal36 wrote: »

Surely if the business went into administration he should have been thrown into the creditors pot like everyone else ?

Again I would guess this depend on the loan agreement and whether the loan was made to the business or the two individuals.

More information on the wording of the agreement would help people advise.

manfromuncles

Quick clarification for you. The loan was a personal loan not loaned to the business. Otherwise we would have done as suggested and thrown him into the creditors pot as suggested.

In fact, the father-in-law was the original business owner and loaned us the money to help buy the business from him. It was all very complicated but essentially without his help we would not have been in a position to buy the company from him. He wanted to sell the company but also wanted to keep it as a 'family' business so to speak.

The wording of the original loan was something along the lines of "We agree to pay (name) a sum of £1000 per month for a total of 120 months signed (my name and ex-wife's name). Very simple with 3 signatures. There were no terms and conditions or anything like that.