Old o/s loan and council tax

missymoz

I have received a hand delivered baliff letter re outstanding council tax from 2007. I have written in to offer £5 a month a few months back as it's all I can afford. Now a hand delivered letter. Also I have been contacted regarding an old outstanding loan, which I'm not refusing to pay but I simply don't have the full outstanding amount. I thought that as long as you made an offer to pay, companies havw to accept this?
I have to speak to both companies today, and I just don't know what to say for the best.....any ideas anyone it's keeping me awake at night?

Thanks

StuTheDon

Hi,

Companies do not have to accept any offer you make them. Currently, you are in breach of the credit agreement you signed which states you will pay back the loan by x amount over x months.

Obviously it is in the interests of the company to get their money back so they may accept an initial offer of £5 per month, but they may only accept this temporarily.

The next step for them will be court action/bailiffs etc. Your best bet is to offer to send them your income and expenditure statement to prove you dont have the amount.

What are the amounts involved?

Tixy

Hi MissyMoz

Its also worth remembering that council tax is a priority debt (as in theory you can end up in prison for non-payment). You should be paying council tax before non-priority expenditure and unsecured credit repayments.

Like Stu says write up an income & expenditure account showing what comes in and goes out each month and how much is left for debt repayments and arrears repayments. - this template is a good one to use http://www.makesenseofcards.com/soacalc.html.

missymoz

Hi the o/s loan is 7 k and council tax is £400.....1st credit are chasing the Llloyds loan and are being very aggresive, not a surprise.
I am losing my job in 2 weeks and although I won't be out of work long I never have been I simply won't have any money to offer, but I do want to pay something.
I know that the council tax needs to take priority so I will deal with that first, its just I dom't have much to give!

Thanks for your replies

I_know_my_ABC_and_my_CMYK

How old is theLloyds loan and when did yo last make a payment on it? Loans become statute barred after 6years if no correspondence or payment has been given form you. Where the council tax ix concerned what has already been posted is correct. It's a priority debt which you must pay. Contact the council and talk to them about it as they can take the debt back if they want to. Also phoning national debt line may be a good idea in your circumstances.

www.nationaldebtline.co.uk

missymoz

I last made a payment around 5 years ago, maybe older, I suppose now I have spoken to 1st credit it will be open again now, which I have to understand, no good burying your head in the sand is there, have learnt that now!

Thanks all

Tixy

missymoz wrote: »

I last made a payment around 5 years ago, maybe older, I suppose now I have spoken to 1st credit it will be open again now, which I have to understand, no good burying your head in the sand is there, have learnt that now!

Thanks all

No- speaking to a debtor does not count re statute barred status- it has to be a written acknowledgment of the debt or a payment against the account (unless they have obtained a CCJ for the loan).

So if the last payment was more than 6years ago (or 5 in Scotland) then you would not need to pay - read this factsheet to see if you think you qualify http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act and if you think it has been 6years then send them the sample letter mentioned in the factsheet. If you do this its up to them to prove its not statute barred (but don't believe what 1st credit tell you about how statute barred works as they lie- come back and check the facts on here). Eg they may tell you its 5.5years since the account defaulted but thats irrelevant its the payment or acknowledgement date that is important).

Good luck.

(If you are in scotland go the the scottish factsheets part of the national debtline website and use that instead)

missymoz

Thank you so much for the info, I am 100% sure It's been over 6 years since a payment was made, so I shall be sending my letter.

Thanks again