I lent £30,000 to a friend of a friend, who has a range of unsecured debts she is defaulting on. She is currently going through an individual voluntary arrangement (IVA) process, so I stand to receive only a small slice of my money back. But, apparently, because I am owed more than 25 per cent of the debts, I can veto the IVA. The woman also owns a £300,000 house in which I believe she has significant equity. Is there any way of converting my loan into a secured loan, to avoid suffering a sizeable loss?

Jamie Wheatley, head of the restructuring and insolvency group at solicitors Mills & Reeve, says that while your concerns are understandable, it should be remembered that you are only one of a number of creditors chasing the debtor. Therefore, the odds are stacked against you in terms of gaining a better position over the other creditors.