For threatening to take a relative to small claims court over unpaid debt?
cantpaytakeitaway · 20/03/2021 18:49
I loaned a relative a large sum of money a few years ago and they agreed to pay be back my a certain date.
Said date is looming and I'd like my money back.
We're not on speaking terms which is very convenient for them!
AIBU to relative them to small claims court if they fail to pay me back by said date?
As mentioned, it was a large sum of money and given the pandemic, I recognise it may not be possible to pay it all back at once.
However, I think regular monthly payments (as opposed to nothing) is completely fair. I plan to notify them of my intention to take them to SCC if no repayment schedule is agreed.
To add: relative has a terrible habit of borrowing money from relatives and I should never have loaned them money in the first place. However, I was manipulated by them and couldn't see it at the time sadly.
They relative owns a property which can (and should) be sold to clear their debts.
Has anyone been in this situation before? Were you able to get your money back?
Am I being unreasonable?AIBU
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cantpaytakeitaway · 20/03/2021 19:04
Re the property they own, they don't live there - never have done. It's a rental.
I was thinking monthly payments over a long period of time but the agreement stated the lump sum would be paid in full on or before said date.
It also stated the borrower would be responsible for any legal costs needed to recover the debt.
I just did some maths and depending on how small the repayments were, it could take close to/in excess of a decade.
As mentioned in my OP, I was manipulated into loaning them the money so would really rather it back in a single lump sum.
ChorltonWheelie · 20/03/2021 19:13
Might be useful OP
gobbynorthernbird · 20/03/2021 19:15
OK, just to warn you that you might not have the choice as to a lump sum or instalments. You also need to think about what you'll do if they fail to satisfy a judgment. Would you instruct enforcement (who can't do much unless there's a credit-free car in the debtor's name parked somewhere accessible), or put a charge on their house?
How much is the debt?
cantpaytakeitaway · 20/03/2021 19:23
How much is the debt?
I understand. Ultimately, as long as I have something in black and white that states how I'll get all the money back I'll take it.
What I don't want, is what I think this relative's done in the past - borrow money from family (even with an agreement in place) expecting that they won't ask for it back because they're family.
I would make a claim via small claims court or statutory demand.
I wouldn't make the claim against their house, I was just including that for context re relative's situation.
cantpaytakeitaway · 20/03/2021 19:26
To add, AFAIK this relative hasn't been taken to court over outstanding debt before but has always managed to wiggle out of it. Either by borrowing from Peter to pay Paul or by taking out credit cards.
It's entirely unsustainable and now that I've "gone clear", I recognise I should never have loaned the money in the first place.
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