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to think my friend is right to be reluctant to pay this money back?

(12 Posts)
TableVamp Fri 08-Jul-11 21:24:55

Friend's parents invested money in friend's DH's business. DH's business partner was friend's brother. So parents were investing in son and son-in-law's business.

Business went bust.

They want half their investent back from friend's DH and other half from their son.

Unfortunately friend's DH doesn't earn much at the moment so my poor friend is struggling to pay her parent's the money every month (even though she was TOTALLY against the idea of them investing the money in the first place as the business was a very risky one to start in a recession and her brother has a crap reputation money and business wise. She even begged her DH not to go into the venture but her DH did it anyway...). They know my friend is paying it and not her DH.

Also, isn't an "investment" just that? If it goes wrong, then tough shite? You made a bad investment, you can't then pursue the owners of the business personally for the money???? I'm sure if the business had done well they would have expected a good return on their money... isn't that the risk?

I just feel angry when she says she cannot come to things as she is struggling etc. But if she even tries to broach it with her parents she just gets told how they (her DH and brother) and ruined them etc etc etc.

sad sad

TableVamp Fri 08-Jul-11 21:26:01

*have ruined them

StealthPolarBear Fri 08-Jul-11 21:27:18

yes i agree an investment is an investment surely

TableVamp Fri 08-Jul-11 21:28:48

I know for a fact it would destroy their family if her and her DH refused to pay the money back sad

StealthPolarBear Fri 08-Jul-11 21:29:41

then it was a business loan

snicker Fri 08-Jul-11 21:32:21

Did they think of it as an investment or a loan? How was it so unclear at the start?

Did they expect repayment or a cut of the profits?

TableVamp Fri 08-Jul-11 21:32:41

Well it became a loan when the business failed *stealth"... hmm

BlueCat2010 Fri 08-Jul-11 21:33:47

If it was an investment in a Limited company then tough. If it was an investment in a partnership then each individual will still be liable for debt even if the business is shut down.

Maybe she can have a word with her parents and see if she can reduce the payments made each month, to be increased when things pick up a bit.

TableVamp Fri 08-Jul-11 21:38:19

Ltd co.

I actually know quite a lot about the legalities of it all but it seems to have now crossed over into a moral argument/arrangement if that makes sense at all!

BlueCat2010 Fri 08-Jul-11 21:42:08

Mmmm tough one then.

If she is feeling morally obliged then why can't she talk to her parents?

TartyMcFarty Fri 08-Jul-11 21:53:44

Was anything in writing? Was it defined as an investment or a loan?

AgentZigzag Fri 08-Jul-11 21:56:42

I understand what you're saying and agree it was a risk (and the reason I wouldn't mix family and business) I think they should be paying it back.

My family was absolutely brasso for years because a bloke my dad went into business with went AWOL when the business went under and they had to pay back the start up loan.

It must be totally galling for your friend if she didn't agree with it in the first place, but that's irrelevant, and I admire them for doing the responsible and right thing to pay it back.

You sometimes have to make sacrifices to pay off your debts, not that I think of going out as an essential.

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