HomeDebt RecoveryWhat can you do if you’re owed money by loved ones?

Unlike a cold caller or a salesperson in the streets where it is easy for you to say no to part with your money when a friend or family member asks if they can borrow money, you can sometimes find it difficult to say no and instinctively want to help. You have loaned money to a person who you trust will repay their debt to you but weeks, months and possibly years have gone by and you’re still awaiting your repayment.

What steps can you take to get the money owed to you?

Give the person a reminder that you’re still awaiting repayment. Ensuring to take on a friendly approach as people who suffer from financial difficulties such as debt problems, often feel overwhelmed, a friendly approach means they are less likely to avoid you.

Demanding a repayment in one single payment may result in your loved one to be asking to borrow money again soon. To avoid this situation, you could suggest a payment

plan, sitting down with them and discussing what their financial situation is. You can also offer your support to help get them out of their current position. This can be done by working out when they can start to repay and how much they are repaying you, ensuring it is affordable so they can stick to the plan. This may not be ideal if you are in a situation where you need the whole amount straight away, the debtor could also fail to make payments.

If you decide to involve the court, you will need to have some form of evidence that you lent your friend/family money and they have not paid you back. Providing evidence that you have lent money to your friend or family can be a signed contract, loan agreement or an IOU. A legal contract can be verbal if the agreement was discussed between you both. The court, however, must be able to see that there was a loan in place. Text messages, social media messages, or emails between both parties discussing the loan and or debt are examples. Other ways to establish you are owed the money include bank statements, proof you transferred the money, and evidence that they began repaying you into your bank account but then stopped. Someone else may have been present when you agreed to the loan; this individual can serve as a witness and make a statement.

Taking the person to court serves little purpose if they have no money or assets; if you win the case your friend or family member receives has a County Court Judgment (CCJ), but they may not have the money to give you. They can apply to repay you £10 a month and the court will agree that it is all they can afford. However, if your friend has a job, owns a car (not one bought through finance), or has equity in a property, as well as any other assets that would cover the debt, it is reasonable to believe that you can recover the debt from them by proceeding through the courts and obtaining a CCJ against them.

If a friend or family member or even an ex-partner owes you money and you think a CCJ is the right course of action it is essential to get legal help as soon as possible. Our expert solicitors at Latimer Lee Solicitors can provide you with advice and act on your behalf.



HomeDebt RecoveryWhat can you do if you’re owed money by loved ones?

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Personal Debt Recovery

 It is common in circumstances where you are owed money, you still wish to continue a relationship with those who owe you money. We treat each case with care to attempt to resolve the issue in your favour whilst maintaining your relationship.

What is the debt recovery process?

Dependant on the situation the debt recovery process can differ from induvial cases. In general, the procedure is usually the following:

Sending a letter of claim to your debtor – Your solicitor will send this letter to the debtor advising them of the amount due and requesting payment. It will also explain the implications if they avoid payment to the debtor, which should prompt them to pay the outstanding amount to avoid serious legal action.

Telephone calls – if the letter receives no response, to obtain payments our personal debt solicitors will call the debtor.

Issuing court proceedings – if the debtor fails to pay the amount owed, we will issue court proceeding against them, leaving the debtor with little choice but to repay the debt.

Obtaining a County Court Judgement (CCJ) – A County Court Judgement is a legally binding document. It specifies how the debt will be repaid and the time frame in which the debtor must pay.

What are the most common types of personal debts?

There are many types of private debts which often lead to individuals being owed money such as:

  • Personal loans to relatives, friends, or former partners
  • Loan to help a loved one start up a business
  • Wages not paid by an employer
  • Deposits not returned
  • Proceeds from the sale of private goods

If you are experiencing problems retrieving repayments of a debt or a personal loan you can take action.  

Do you need a debt recovery solicitor?

To speak with a solicitor regarding debt recovery contact us today on 0161 798 9000.