Barclays secured business loan.

[gubbins1]

Hello . I have had some great advice in the past from members at CAG , and wonder if anyone can help with my latest problem.

 

I took out a £30,000 secured business loan from Barclays when I set up my company in 2005.

 

Long story short , the company was wound up and Barclays took me to court for the outstanding balance on the loan , which after all the interest had been added was £25,000 odd.

 

Barclays did all they could to get possesion of my house , but the Judge ruled that I should be allowed to repay the debt at £400 per month.

 

I have met all the payments since , and after selling at last a machine from my ex company , I am in a position to make Barclays an offer of settlement.

 

After contacting Barclays , it seems that interest has still been accruing after the court ruling and all the payments I have made since have only been servicing the interest and not paying anything towards the principal.

 

In a previous court visit for a seperate business loan with Yorkshire bank , the Judge also ruled that I could pay £ 400 per month to cover the debt . In this instance though , the interest was frozen and I have just been paying down the debt from a figure frozen at the date of the Court case.

 

My question is , should the figure quoted in my court case with Barclays have been frozen , or are Barclays able to keep the interest meter ticking ?

 

Thanks in advance,

 

Paul.

[ims21]

Hi

 

Would it not be in the details of the Judgement of which you should have received a copy?

 

If you don't have a copy I would suggest contact with the court to get a copy of the Judgement and have a look at it in detail.

 

Others may have other options too.

 

Regards

 

ims

[slick132]

Hi Gubbins,

 

Post-Judgement interest can make a huge difference to a debt. I believe the amount of the debt can influence the way in which interest is treated.

 

As Ims says above, you must check on the court's Judgement to see if anything was said about interest, and come back to us.

 

A Search of Post Judgement Interest brings up several sources:-

 

http://www.google.co.uk/url?sa=t&source=web&cd=1&sqi=2&ved=0CCAQrAIoAjAA&url=http%3A%2F%2Fwww.consumeractiongroup.co.uk%2Fforum%2Fshowthread.php%3F5140-interest-after-cc-judgement&ei=XZJmTtiHHcaX8QOV3JyFCg&usg=AFQjCNFO5a5L3Scr-dsjSmKHH5B4uEZTmA

http://www.google.co.uk/url?sa=t&source=web&cd=1&sqi=2&ved=0CCEQrAIoAzAA&url=http%3A%2F%2Fwww.consumeractiongroup.co.uk%2Fforum%2Fshowthread.php%3F178335-Interest-Post-Judgment&ei=XZJmTtiHHcaX8QOV3JyFCg&usg=AFQjCNHZP5KezJnMbcV6wM6zzD9X-8Gkzw

 

It would also be useful to know exactly on what basis the bank got their judgement against you personally. Eg, were you a personal guarantor; was the property put up as collateral; etc.

 

[gubbins1]

Thanks for the replies slick and ims.

 

The business loan was secured with me as principal debtor.

 

After contacting the court , it seems that there was no judgement as such , just a suspension of possesion order .It looks like I don't have much of a chance to get Barclays to set a decent sum for settlement.

 

I'll have to wait to see what figure they come up with .

 

Thanks again.

[slick132]

Hi Gubbins,

 

If the bank sought a Possession Order, was there not already a CCJ against you for the debt............

 

........... and, if so, did this address the question of interest in any way.

 

[gubbins1]

Hi Slick,

 

no CCJ against me , they just went straight to repossesion. Seems they were determined to get my house . Their solicitor even said as much outside the courtroom before we went in.

He said that there would be no terms for repayments , just full repossesion. Luckily , the judge thought different.

[slick132]

Hmm,

 

I'll see if we can get some help with this one...........

 

[gubbins1]

Thanks Slick.