I need some advice regarding some money I lent to my brother. The loan was for £10,000 to help him start a business he has always dreamed of having. I gave him this money 2 years ago. He started his company, and then the pandemic hit and he could not trade. I understood all this and told him to pay me back when he could trade again. He began working for someone, and recently about 6 months ago also trading with his company, and he has not begun any repayments. When I try to contact him his phone is off or it goes to voice mail. I have a signed agreement outlining the loan and the repayments. I am wondering what I should do?
Over the years I have heard and advised on situations very similar or the same as yours, you can read some of these here.
The fact you have a signed loan agreement is a good thing, and is always a wise move.
The question that really needs to be addressed is do you want to follow through with this loan agreement, seek legal advice, and make attempts to collect the debt?
This could mean taking your brother to court, assigning the debt to a collection agency to chase him for payment, or more. All of which does not help the relationship.
And can you afford to write off the loan, not be repaid.
My advice has been to try and communicate with the person who owes you money, find out what is happening, and explain you need the loan to be repaid. There may be a good reason no payments have been made. Of course you need to be able to speak to your brother, so you may need to catch them in person at a time you know where they will be, so you can sit down and talk.
Let me know how you get on with this.