I lent £20,000 to a small UK firm that I had been dealing with for many years in order to help them overcome some cashflow difficulties. They made me an equal shareholder in their partnership and credited the £20k to my loan account in their Accounts prepared for the Inland Revenue. However, the relationship has broken down and they have refused to pay any money back. There was no formal partnership agreement. The other partners do have assets and have benifited from the sale of the firm's assets as well. I have limited means to live on now, and can not afford to take them to court. Have you any suggestions to help me recover any of this money? Many thanks in advance, Steve
I have had a copy of their annual Accounts which indicates my loan amount. That set of accounts was for 2005 and I am not sure if the are still trading.
Hi,Thanks for your question. If I have provided you with an answer, kindly click ACCEPT.If it was a Partnership or SOle Trader, you can sue them personally.WHat I suggest you do is write to the Partners demanding payment within 14 days or you will issue legal proceedings, if at the end of the 14 days you do not receive a response or are paid in full, you will have to issue proceedings.You will be able to do this online at: www.moneyclaim.gov.uk When suing, you should name each individual.I hope this answers your question. If so, kindly click ACCEPT.Kind regards,
Thanks for your reply, but as the debt is over 6 years will it be void or is the date that they stopped trading the applicable date to count from.
Hi,The time starts from when the debt became due, not when you paid the money across. The Limitation Act 1980 would time-bar any claim that arose 6 years after the debt became due.I hope this answers your question. If so, kindly click ACCEPT.Kind regards,
LL.B, Pg Dip, LL.M, Advocate (Civil), M.B.A (Undertaking)
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