UK Bankruptcy Law
UK Bankruptcy Law Questions Answered by Verified Experts
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Could I clarify that you have signed a gurantee deed with the lender in question please?
Do you know if he has any assets or is he in financial difficulty?
yes I have signed paperwork to be guarantor
He has left company but with a payoff so I do not believe he is in financial difficulty. He was on full salary until this time.
Thanks. Is the lender demanding full repayment of the loan or just the missed instalments and interest?
Just the missed instalments with interest which I have kept up to date. My worry is that this individual will keep missing payments which I have to then pay as I am the guarantor or he might not bother paying at all going forward (there is a year left on the loan). If he keeps ignoring me and the loan company on making payments it is better that I pay loan off in its entirety which is on 56% interest and pursue him through small claims.
The interest rate is a concern for two reasons - it hugely increases the loan amount repayable each year and the fact that he obtained a loan from such a lender who still required a guarantee from you is indicative of a very poor credit history so his financial position is not like to be good.
Given the amount involved, and the interest rate if you have money to do so you may consider advising him that you expect him to refund you the monies paid under the guarantee plus interest at 8% per year and give an undertaking that future payments will not be missed within 7/14 days of the date of your email or letter failing which you propose to repay the loan in full in order to mitigate the high interest being charged and immediately issue proceedings in the County Court for recovery of the monies owed to you plus costs and interest at 8% per year under the County Courts Act.
This is a risky strategy in a sense in that if he is in financial difficulty you may struggle to recover the money but looking at the matter logically if he is in financial difficulty and cannot repay the loan the lender is going to come afte you anyway with that much more interest on top. At least by repaying the loan and issuing proceedings against him yourself you head off the high interest charged and you take control of enforcement and collection against him. If he is still receiving salary you could for examply apply for deduction from that or an order that the amount is debited from his bank account if he has any money in it.
THe simplest way to issue proceedings if you decide to do so is using the moneyclaimonline service.
Does the above answer all your questions or is there anything I can clarify or help with any further?
I have two addresses for him - one where he used to live with his wife and one where I believe he is living with his partner. Is it better to write to him at both addresses, email him ( I generally dont get any response) or text him (I know he gets these texts) or do all three?
For the purposes of service for court it is sufficient to write to him at his last known address however if you have two addresses for him you can send a copy of the proceedings to his other address as well. For the claim form use his last known address
There is nothing topping you also sending him a text if you wish though take care not to inundate him as he may attempt to clai harrassment.
Can I clarify anything else above for you?
Great thank you, XXXXX XXXXX been really helpful.
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Great thank you for your help, Joshua