Legal life of a debt

panny12 · 5 March 2012 at 1:22PM

Hi Guys

Just wondering, if i a owe a debt, say to sky or any other company, and the debt is sold onto a debt collection firm or is passed onto a firm which represents sky. And the debt is a number of years old, is the debt legally expired after an amount of time?
Just thought i would ask as lot of clever people on these forums.

Many thanks
Panny

mrsb83_2 · 5 March 2012 at 1:48PM

If there is no acknowledgement or payment from someone who owes a debt fr 6 years, then a creditor is statute barred (i.e. prevented by law) from making a legal claim at court in respect of the debt.

But debts don't 'expire'.

panny12 · 5 March 2012 at 2:09PM

OK so if i am informed that i owe this company monies from an account, which is now 6 years old and no payment has been made in the last 6 years, down to them not chasing the monies as the account was suspended by them and down to me for not bothering to communicate with them further. Does that mean i am free from paying the debt? But would that also still remain as a blot on my credit report?

Thanks

iolanthe07 · 5 March 2012 at 2:30PM

then a creditor is statued barred

It is statute barred, not statued barred! If you have not acknowledged the debt, paid anything off it and not had a CCJ registered against you, then it may be statute barred after 6 years (five in Scotland). This does not mean that it has been written off. The debt still exists, but cannot be persued through the courts. It will continue to be a blot on your credit file because it is still owing.

pauletruth · 5 March 2012 at 4:38PM

in scotland after 5 years the debt no longer exists. in england and wales you still owe the money.

brettcooper1 · 5 March 2012 at 4:44PM

However the "blot" will only remain on your credit file for 6 years. So once the debt becomes statute barred it should be clear (or almost clear) of your credit file anyway

panny12 · 5 March 2012 at 4:48PM

ok thank you for the explanation. And in order to have it removed from a credit file after 6 years, a letter is sufficient to each credit agency?

fracturedsun · 5 March 2012 at 4:57PM

panny12 wrote: »

ok thank you for the explanation. And in order to have it removed from a credit file after 6 years, a letter is sufficient to each credit agency?

It happens automatically the credit reference agency only report on the last 6 years.

mrsb83_2 · 5 March 2012 at 5:58PM

iolanthe07 wrote: »

then a creditor is statued barred

It is statute barred, not statued barred!

Are you for real? It's just a typo.

give_them_FA · 6 March 2012 at 1:47AM

The fact that it is statute barred will not prevent disreputable debt collectors from asking for it and even lying about that they will take you to court if you don't pay. Beware and stand your ground. But if you know it is statute barred there is no way of enforcing it and the easiest approach is to ignore completely any letters or calls you get about it.

John_Pierpoint · 17 March 2012 at 4:27AM

Be careful what you say and especially anything you write or you might start the clock running all over again.

If there is land involved as the security the time limit is likely to be 12 years beware the legal charge.

Legal life of a debt

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