Ex Family loan for business start up 9 August 2021 at 1:42PM in Loans 7 replies 281 views

maxinedavolls

I’m looking for advice about a loan myself and my ex made from his father. We borrowed £5200 to start a business over 3 years ago which failed. We signed a printout to say we borrowed the money and would pay it back, however since separating nothing was said. Then out of the blue, he has contacted me to say I owe £2600 and it is to be paid within 14 days. I was just wondering where I stand legally on this, as a single parent I don’t have the money and not sure how to deal with it?
Thank you in advance for any help/advice 

[Deleted User]

Legally, you stand with whatever terms were agreed 

If there was no schedule of repayments, all parties should look to agree something.

superbigal

May depend on how you dissolved your company.  What kind of loan etc.

maxinedavolls

Yeah there are no terms or repayment plan and I left the business prior to my ex dissolving the business. 

superbigal

Well if there are no terms or repayment conditions then you can safely ignore the demand to pay in 14 days.
I would offer to pay back in 14 years as a counter.

What happened to all the business assets ?   Did you get your share when liquidated ?

MattMattMattUK

maxinedavolls said:

Yeah there are no terms or repayment plan and I left the business prior to my ex dissolving the business. 

Was the loan to you and your ex as people, or to the limited company?

maxinedavolls

MattMattMattUK said:

maxinedavolls said:

Yeah there are no terms or repayment plan and I left the business prior to my ex dissolving the business. 

Was the loan to you and your ex as people, or to the limited company?

To us as people.

maxinedavolls

superbigal said:

Well if there are no terms or repayment conditions then you can safely ignore the demand to pay in 14 days.
I would offer to pay back in 14 years as a counter.

What happened to all the business assets ?   Did you get your share when liquidated ?

I walked away from the business and took nothing, I relinquished my role and if the business would have succeeded I would have got nothing.