Personal civil debt advice

skint848

Hi all, I've got a few debts which I'm working off slowly but surely. There not a particular concern at the moment, and I'm managing to maintain a decent credit rating. I do have a concern at the moment which I'm hoping on a bit of advice on. I apologise in advance if this is the wrong place to ask.

To cut a long story short, I borrowed a few thousand pounds from a friend a while ago to pay off a car loan. We wrote a written agreement that I would pay the value back in 2 years time (the date on the agreement was actually a date of the month that doesn't exist but hey we're not all perfect). As well as payning back the full amount borrowed, I agreed to pay an additional £500 which would cover the interest my friend would have earnt had the money been invested. It is coming to the time when I need to repay the balance, and as much as I could have saved I've been unable to save the full amount. I do intend to pay it back. We are not on speaking terms anymore for something unrealted to this, but I can't simply ask him to be understandable and wait for the repayment.

My concerns are what can he do to legally enforce this loan, and can my credit be destroyed / will I be forced to sell assests etc? Any advice please.

Thanks

samspruce

In my personal experience there is nothing he can do at all. Certainly the note with a date that doesn't exist invalidates the note. Also, according to my inquiries if it were not witnessed by a solicitor you can argue that it was never intended to be legally enforceable. Actually by common law if there is evidence of his part being fulfilled it is enforceable but I have never met a solicitor who would take on the case.

DVardysShadow

samspruce wrote: »

In my personal experience there is nothing he can do at all. Certainly the note with a date that doesn't exist invalidates the note. Also, according to my inquiries if it were not witnessed by a solicitor you can argue that it was never intended to be legally enforceable. Actually by common law if there is evidence of his part being fulfilled it is enforceable but I have never met a solicitor who would take on the case.

Misleading advice. He could take the matter to the small claims court and would probably win. Remember that the note is not the contract, it is evidence of the contract. The court would [probably] take the pragmatic view that for an invalid date [31 April?], then the date which appears to be closest to the intent would stand [10 May].

Additionally, it is totally mistaken to suggest that if a solicitor did not witness it, then it may not be legally enforceable. The very existence of the document would be evidence of an intent.

Finally, he does not need to employ a solicitor to take it to court, but some would be prepared to take this case on.

skint848: I suggest you pay whatever you can now and continue to pay as and when you can scrape the money together.

Culex

DVardysShadow wrote: »

Misleading advice. He could take the matter to the small claims court and would probably win. Remember that the note is not the contract, it is evidence of the contract.

I would doubt that there actually was a contract as such, as there appears to have been no exchange of consideration; the note appears to be a mere promise and hence unenforceable.

The court would [probably] take the pragmatic view that for an invalid date B]31 April[/B]?], then the date which appears to be closest to the intent would stand [[B]10 May[/B.

Shurely shome mishtake?

The very existence of the document would be evidence of an intent.

So was Neville Chamberlain's Anglo-German Declaration.

DVardysShadow

Culex wrote: »

I would doubt that there actually was a contract as such, as there appears to have been no exchange of consideration; the note appears to be a mere promise and hence unenforceable.


Shurely shome mishtake? Indeed

The consideration is the loan, given in exchange for a promise of future payment. Consideration is only given one way. The promise is given in the opposite direction at the same time and the fulfilment of the promise is given later to complete the contract.

If the above is not the case, it would be impossible to actually form a contract for a loan or enforce it as a contract.

fatbelly

OK, he can attempt a court claim. You can defend it. I'm not going to take sides on the speculation!

Even if he got a ccj, you can ask for, and probably get, an instalment order. Provided you keep to that, he could not enforce the judgement (bailiffs or otherwise) so your assets would not be affected.

A ccj would be recorded on your credit file unless paid in full within 28 days of the judgement.

I must admit I'm not sure where the cut-off is between someone who lends money to 'friends' (with interest) and an unlicenced money lender (loan shark), because the latter loans are unenforceable in court, and a criminal offennce committed by the lender.

tallyhoh

Can't you sell some of your assets yourself & try and pay it off?

Trollfever

Please note:

12-09-2007, 8:29 PM

Culex

Trollfever wrote: »

Please note:

12-09-2007, 8:29 PM

So?

Are you suggesting the OP no longer has any kneecaps?

fireduke

LOL

your advice is 4 years late the OP is probably buried somewhere

DVardysShadow

Trollfever wrote: »

Please note:

12-09-2007, 8:29 PM

However, the first response, yesterday was such terrible advice that it could not be ignored.