Hello, I have an outstanding new venture loan between myself and a family friend that was agreed in 2007 to run over a 5 year period for the amount of EUR 30,000 plus a rate of 4% interest per annum. The time has now passed and I am unable to pay the loan because in fact the business never got off the ground as I fell pregnant and haven't been working for the last 4 years. I just want to know where I stand legally as there is a written, signed agreement in place between the two of us which states the above information but doesn't mention what we do in case the venture doesn't succeed. Am I obliged by a court of law to repay this money back if the business hasn't succeeded?
Optional Information: Country relating to Question: France Already Tried: nothing yet
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Hello thereYes I am stil waiting for an answer please. Thank youLucy Bonser
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ok, thank you. Please advise as soon as you can. Many thanksLucy
If the document says that this is a loan to be repaid after 5 years, and if it does not expressly states that repayment is only due if the business venture succeeds, you are legally bound to repay the loan plus the agreed interest. If your friend takes the matter to court, it is very likely that the court will allow him/her to go after your assets and income.If the loan agreement made repayment conditional to the success of the business, you would still be liable to repay the loan as it seems the business did not succeed not because of adverse business conditions but because you chose to have a child and stopped working on your project. Which definitely cannot be used as an excuse not to repay a business loan...
Experience: 8 years as a Senior judge at Paris Conseil de Prud'hommes (Paris Industrial Tribunal)
Thank you so much for this. I understand more clearly where I stand now.Do you think I can offer to re-pay as much as I can afford per month on direct debit? Obviously the agreed time frame is now over but this is all I can do financially right now?
Relist: Other.Mr T Perrin seems to be off line or occupied
You can make this offer but your creditor friend is free to accept it or to demand full repayment and to take you to court, as you have signed an agreement to repay the outstanding amount after 5 years.