What action could be taken against me?
In many cases you can help resolve the situation by talking through things with your friend or family member and coming to an agreement on how you’ll deal with the debt.
Sometimes things become more difficult and the friend or family member takes further action against you. These types of debts can be pursued through the courts, similar to other unsecured debts. If you’re facing court action of this type you should seek legal advice as this can be complicated.
A friend or family member can legally lend you money, but if someone is making a profit by lending money to you and charging interest they may be acting illegally. This type of lender is known as a loan shark, and they can’t get their money back by taking you to court. Contact us for confidential advice if you have this type of debt.