Personal loan from friend - terms changed

phoenix1993

A friend was able to loan me 4k about a year and a half ago so I could avoid hefty interest on a bank loan, we had a written agreement I would repay £300 a month, and all was fine. Recently things have broken down between this friend and I and they are demanding I repay the loan in full. I am not in a position to do that all in one go, I'm just wondering where my rights are on this - I feel they may take me to small claims court, though I've stated still I can only do the £300 a month as agreed. Any advice? Thank you 

FlorayG

Do you have this in writing...and witnessed?

phoenix1993

It's in writing, via email, and has been running smoothly for quite some time. 

Grumpelstiltskin

So how much is outstanding now?

mr_stripey

if you've been paying back £300 a month for a year and half (18 months) then you should have paid it all back by now?

18 x £300 = £ 5400?

phoenix1993

There is approximately 1200 left to pay, she had given me a break on a few months earlier this year due to a family emergency. I accept the debt is owed, I'm just worried about the immediate demand of it and what my options are and if it's tenable to maintain the agreement we had, or if she can take me to small claims for the whole amount instantly. 

phoenix1993

With all due respect, and I appreciate responses, I'm inquiring about legal processes of breaking an arranged agreement as opposed to the actual amount, as in will it being in writing between us count for anything? Thanks 

Grumpelstiltskin

Even if she took you to court and obtained a CCJ you could pay it back in installments, but she will need evidence as much as you need evidence.

Can you see why we asked how much is outstanding? As mr-stripey said if you had paid each month it would have been cleared by now.

phoenix1993

I wouldn't have been asking the question if it was cleared by now, does the amount outstanding make a difference if someone wants to pursue the amount immediately? I'll check further on some other threads. Thanks everyone 

Grumpelstiltskin

Yes if there was only say £300 outstanding it wouldn't be worth her cost of taking you to court.

EssexHebridean

Keep paying the £300, and if you chases you for more, politely explain that you are only able to pay the £300 as per the agreement that you have had throughout. The chances are, that by the time she decides to take it any further, you will be several months further down the line, and the debt will be cleared off in full anyway. 

As and when you make the final payment, follow that up with an email confirming that the final sum of £300 has now been paid and accordingly the debt is settled. 

make sure that ALL the emails on this matter are backed up securely so that they can't be accidentally deleted or otherwise lost! If she did decide to take it through the courts, then the more evidence you have around the whole thing, the better.