Question

Jon,

My father lent me £10,000 to start a business, and now the business is not trading, so I cannot make the payments back to him. He is very angry with me and has threatened to take me to court. I don’t know what to do. Any advice?

Jake

Answer

Jake,

It is unfortunate when money passes hands between family and friends, and then the venture which all began with honest intentions, goes South.

Are you and your father still on good speaking terms? Have you calmly explained the situation, and what happened with the business?

Are you working, and can you make some form of payment each month towards the debt?

Was there anything in writing regarding the loan, a contract or loan agreement?

What type of business was it you had? Does the business have any assets that could be sold to generate money to be paid back towards the loan?

Depending on how your father handles matters, and if there is an agreement, the threat of taking you to court has to be taken seriously, that is why you need to try and sort matters, and also keep things in a calm and keep the lines of communication open.

Get back to me, and we can look closer at this.

Regards,

Jon

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