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I lent a friend some money. He is now selling his lease and has written me a cheque to pay in when the funds are available. I have just found out that he has other outstanding debts. Where do I stand with this cheque?
About 18 months ago my friend set up a business and asked me to lend him some money. Of course at this point I was happy to help him, no solicitors were involved it was just one friend helping another. Now this friend is trying to sell his lease and has assured me that once the lease is sold then I will get my money back. In the meantime he has written out and signed a cheque ready for me to pay into my account once the funds are available. However, I have now found out that apparently he has outstanding debts with other people - i.e. gas, electric etc. Where do I stand with this cheque?
If the cheque is dated you can present it the bank and then sue the man when the cheque is dishonoured on the strength of the dishonoured cheque. Is there any equity in his house? If there is, try to get the debtor to agree to a charge against his house. We can put you in contact with Solicitors who will draft and register the charge for you for a fixed fee. This will ensure that if there is any equity your debt is secured at least in part.
If the man has no money or assets however you are in difficulties. To use the old maxim "You cannot get blood out of a stone".
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