UK Bankruptcy Law

UK Bankruptcy Law Questions Answered by Verified Experts

Ask an Expert,
Get an Answer ASAP!

UK Bankruptcy Law
This answer was rated:

I became a guarantor for a £3000 loan for my boss two years

ago. He has missed...
I became a guarantor for a £3000 loan for my boss two years ago. He has missed payment twice on the monthly payment of £151 and has not paid me back. We have both left workplace and do not have a great relationship because of these missed payments - he does not acknowledge any of my texts now or answer his phone. The Amigo loan is on a high interest rate at 56% and there is approximately £1500 left. Am I better off paying off the outstanding loan as he has now missed payment again and pursue this payment through the small claims court?
Show More
Show Less
Ask Your Own UK Bankruptcy Law Question
Answered in 6 minutes by:
3/26/2013
Joshua
Joshua, Lawyer
Category: UK Bankruptcy Law
Satisfied Customers: 26,070
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
Verified

Joshua :

Thanks for your question. Please kindly RATE my answer when you are satisfied

Joshua :

Could I clarify that you have signed a gurantee deed with the lender in question please?

Joshua :

Do you know if he has any assets or is he in financial difficulty?

Customer:

yes I have signed paperwork to be guarantor

Customer:

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.

Joshua :

Thanks. Is the lender demanding full repayment of the loan or just the missed instalments and interest?

Customer:

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.

Joshua :

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.

Joshua :

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.

Joshua :

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.

Joshua :

THe simplest way to issue proceedings if you decide to do so is using the moneyclaimonline service.

Joshua :

Does the above answer all your questions or is there anything I can clarify or help with any further?

Customer:

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?

Joshua :

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

Joshua :

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.

Joshua :

Can I clarify anything else above for you?

Customer:

Great thank you, XXXXX XXXXX been really helpful.

Joshua :

A pleasure

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me.

Customer:

Great thank you for your help, Joshua

Joshua
Joshua, Lawyer
Category: UK Bankruptcy Law
Satisfied Customers: 26,070
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
Verified
Joshua and 87 other UK Bankruptcy Law Specialists are ready to help you
Ask your own question now
Ask Joshua Your Own Question
Joshua
Joshua
Joshua, Lawyer
Category: UK Bankruptcy Law
Satisfied Customers: 26,070
26,070 Satisfied Customers
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice

Joshua is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks!

RickLeeds, UK

I did not know a French Law service existed and I was very impressed with the speed of reply --- very professional. Many thanks!

Ms. BakerAlfafar, Spain

Thank you so much for your help. Your answers were really useful and came back so quickly. Great!

MaggieUSA

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.

JustinKernersville, NC

< Previous | Next >

Meet the Experts:

Max Lowry

Max Lowry

Advocate

69 satisfied customers

LLB, 10 years post qualification experience

Alex J.

Alex J.

Solicitor

62 satisfied customers

2 Years Insolvency Litigation

Buachaill

Buachaill

Barrister

22 satisfied customers

Barrister 17 years experience

John Knox

John Knox

Solicitor

12 satisfied customers

solicitor with 8 years experience

Stuart J

Stuart J

Solicitor

78 satisfied customers

PGD Law. 20 years legal profession, 6 as partner in High Street practice

Joshua

Joshua

Lawyer

26,070 satisfied customers

LL.B (Hons), Higher Prof. Dip. Law & Practice

Ben Jones

Ben Jones

UK Lawyer

9,175 satisfied customers

Qualified Solicitor - Please start your question with 'For Ben Jones'

< Previous | Next >

Related UK Bankruptcy Law Questions
We have been running a rural pub for the past 2 years, which
We have been running a rural pub for the past 2 years, which is leasehold. We have got further and further into debt, and believe it best if we go in to receivership. We are a Ltd co., so could you pl… read more
F E Smith
F E Smith
Bachelor\u0027s Degree
1,994 satisfied customers
My husband was declared bankrupt in dec2004 and myself in
my husband was declared bankrupt in dec2004 and myself in feb 2005, we were both discharged the following year, two years ago my husband joined his works sharesave scheme and it is due to mature next … read more
F E Smith
F E Smith
Bachelor\u0027s Degree
1,994 satisfied customers
Been asked to provide my court case number or bankruptcy
Been asked to provide my court case number ***** bankruptcy number as been asked asked to pay a finance company back money which I don't owe from 2006. Is there anyway I can obtain Tanya of these numb… read more
ivorylounge
ivorylounge
Bachelor\u0027s Degree
35 satisfied customers
Been caught by hmrc avoiding tax 3 years ago after a lot of
Been caught by hmrc avoiding tax 3 years ago after a lot of letters trying to negotiate the value of the out come I still cant afford want they wantWhat the best solution ?Tribunal ? Bankruptcy ? Or A… read more
Jamie-Law
Jamie-Law
4,918 satisfied customers
Last year I was taking a former employee to court on a no
Dear Sir / Madam, Last year I was taking a former employee to court on a no win no fee basis. Unfortunately the chances of wining the case fell below 50-50 and my solicitor firm suggested that on that… read more
Jamie-Law
Jamie-Law
4,918 satisfied customers
Thanks for helping me in the past with removing a CCJ, your
Hi Joshua, Thanks for helping me in the past with removing a CCJ, your advice helped and I managed to get the CCJ removed. My next question is re on defaults on my credit report. I have several defaul… read more
Joshua
Joshua
Lawyer
26,070 satisfied customers
I have severed a stat demand ,the debt is undisputed however
I have severed a stat demand ,the debt is undisputed however saying no money to pay now wish to issue bankruptcy from 6.7 need it filling in correctly and the serving … read more
Jamie-Law
Jamie-Law
4,918 satisfied customers
If you declare yourself bankrupt in the uk and own a
if you declare yourself bankrupt in the uk and own a property in spain and havent declared it what happens and will they take it to offset debt… read more
F E Smith
F E Smith
Bachelor\u0027s Degree
1,994 satisfied customers
I was a director in my husband's company but I resigned in
I was a director in my husband's company but I resigned in march 2016 as we were getting divorced which came thru in December 2016. We have a verbal commitment on payment for the children but no finan… read more
Nick H
Nick H
LLB
115 satisfied customers
I have being made bankrupt as of Feb 2017. I haven't lived
I have being made bankrupt as of Feb 2017. I haven't lived in the uk for a long time though. The official receiver asked to have me publicly examined in court in London next Thursday. I now live in Ca… read more
Buachaill
Buachaill
Barrister
Master's Degree
22 satisfied customers
My husband was bankrupt in february 2014. In December 2017
My husband was bankrupt in february 2014. In December 2017 BDO informed us they wanted his share of the property. They have a restriction order on the property which is in joint names. I am trying to … read more
Stuart J
Stuart J
Solicitor
PGDLaw
78 satisfied customers
While working in the Czech Republic I took out a small loan.
HI While working in the Czech Republic I took out a small loan. However, I got behind in my payments and it was sent to a debt collection agency last year. I was asked to make payments within 5 days, … read more
JimLawyer
JimLawyer
GD Law
70 satisfied customers
UK: company liquidation question I registered with a
UK: company liquidation question I registered with a translation / interpretation agency last autumn. I did 2 short translation jobs in February through the agency totalling £48 approximately & sent t… read more
Stuart J
Stuart J
Solicitor
PGDLaw
78 satisfied customers
Do I have to declare that I am a former bankrupt when
Do I have to declare that I am a former bankrupt when applying for a home loadn? (10 years since discharge) … read more
Jamie-Law
Jamie-Law
4,918 satisfied customers
My friend is having some very complex financial issues and
My friend is having some very complex financial issues and on the face of it looks like bankruptcy may be her best option. How can she get comprehensive confidential advice about this?… read more
Maverick
Maverick
Doctoral Degree
6,133 satisfied customers
I left my mums address some years ago and still keep getting
I left my mums address some years ago and still keep getting chased there for a years old debt for an unpaid mobile phone bill which was in dispute. Ultimately it got passed on to a debt collection ag… read more
ivorylounge
ivorylounge
Bachelor\u0027s Degree
35 satisfied customers
I have claimed ppi from loans before 2002. Rbs sent me a
I have claimed ppi from loans before 2002. Rbs sent me a letter saying they can pay me nearly 13,000 and the claims company want 3800. My issue is that I declared myself bankcrupt in 2002 and I have r… read more
Clare
Clare
Solicitor
Bachelor\u0027s Degree
9,744 satisfied customers
I need some advice with a friend. I went into business with
Hi,I need some advice with a friend. I went into business with a friend in November last year. In a previous business I had a business partner steal a significant amount of money so since then I have … read more
Maverick
Maverick
Doctoral Degree
6,133 satisfied customers

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).

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).

Show MoreShow Less

Ask Your Question

x