Get UK Law Questions Answered by Verified Experts
HiThank you for your question. I will try to help with this.
Why do you think you should not pay this money back?
There is no doubting the fact that the money is owed BUT not to this person but a dissolved company. For over two months, in response to the claim for the money to be repaid, I have repeatedly asked for a copy of the loan agreement and all other documentation and they have not been forthcoming. It is my considered opinion that this person knows it is unenforceable and so I wish to use the law to refuse to pay this debt because it is not owed to that person personally... if of course it is the law!
Hi Max... I have in my possession documents which are irrefutable proof that the money was lent to me by the company and not the individual even though I am positive there was never a signed loan agreement, hence the reason why I have not received a copy despite repeated requests. I am also confident that it would be unenforceable because of the six year statute of limitations rules as no repayments have ever been made and it is some 7 years since the loan was actually provided. I therefore feel I have two lines of defence but want to use the fact that the money is owed to the company and not this person as the main reason for refusal to pay. I have approached Just Answer to establish whether in your opinion this person is acting illegally.
For Max... If you mean was the money lent to me with a personal guarantee given to the company by way of a deed signed by this person then I am not aware of it being the case but then surely I would not have been party to that information as it would have been an internal matter for the company. No repayment plan was set up. It was an advance against future earnings and so would have been depleted as and when these occasions occurred. Within a year my business was closed and so unable to repay the debt on that basis and the following year this company was dissolved. The lack of a legally binding loan agreement does of course not help this person's case either as proof of who the loan was made by and on what terms. There is more to the circumstances surrounding this loan but none that I feel are relevant to the core issue which is does this person have the legal right to claim repayment of the money from me.
Thank you very much for confirming what I had thought was the case. One final question, I understand that because the company was dissolved and not made insolvent then the company could be resurrected. Whilst this may be a perfectly legal way to secure repayment of the debt I would have thought it would be unwise due to the costs of setting up the company again, etc. Do you agree that  this is possible and  would be financially unwise given that the debt is only £2747? Mind you I suppose if this did happen then I would be able to fight it on the fact that its statute barred.
For Max... I do apologise I will press accept in future. It was not until digging out my old files recently that I remembered the loan had been made by this company and why I looked into it much deeper (ie. Companies House) and discovered that it had been dissolved. I have no idea why I was not approached by the liquidator. One can only assume that as this person knew I had no money to repay the debt (which was the truth at that time 2004/2005) the liquidator was told this and for that reason decided there was no point in contacting me!
For Max... I think my strategy now will be to wait for the reply to my letter sent last week which yet again requested a copy of the loan agreement. If the reply is still a demand for the money then I will write a letter based on your advice. If this does not work then it will be interesting to see what happens next. Either way I am now extremely confident that this debt will never be repaid. I thank you for your advice and will come back to you if the circumstances are such that I need to take this further.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).