Does Debt 'Expire' So To Speak?

Claire_DC

Basically i have a few debts of up to a grand for each one.. but i also have one credit card debt of £3500 which is my biggest single debt (no interest being paid as it was passed over to a debt recovery company a long time ago) but they only gave me a £500 limit to start with and let me spend waaay over it.. as you can see.

I haven't paid anything off it, but then i haven't heard anything from them in years (the debt is from 1999) and to be honest i don't even know who is dealing with it these days, or if they're dealing with it.

However, i was told the other day that after 6 years of non payment/since the debt was gained, debts are written off anyway.. now by my estimations it's well over 6 years since i gained this debt and i'm just basically wanting to know if this is correct or not as i wouldn't want to just assume it is and then get bitten on the bum when i least expect it.

I really would like to get out of debt asap and knowing where i stand with this will help set me off along my way to dealing with, and prioritising the rest of my debt that i gained through a bad period of my life and i feel would help me close that chapter of my life and let me try to get on with things (i used shopping with credit and store cards to deal with traumatic experiences that happened to me, i wouldn't mind so much but it wasn't even logical spending - 7 of the same bag?? )



I'm sure i'll be back to keep asking more questions about debt too but i really wasn't sure where to start and i wouldn't want to pile out a long list of debts for you to help me with them all, so thought it would be better to tackle my debts in bite size pieces.


Thanks in advance.

fizzel81

hello and well done for posting.
yes after 6 years they are usually written off.
how much currant debt have you got outstanding or is it all from 6 or more years ago?

Claire_DC

Heya, thanks for the reply.. right my debt from 6 years ago includes (but is not limited to) my:

Abbey National visa card which is the £3500 amount, never been to court about it so no CCJ there, haven't heard from them in ages.

Selfridges Store Card - £806 - These are still in contact with me about the debt.. they've offered to halve it if i can pay it off in one go.. am considering doing so but the money i have saved was to go towards the house my fella has bought for us to do it up instead of getting an extra £1k on the personal loan.

Barclays bank overdraft from when account was closed - £500 ish (not 100% sure how long exactly it was ago but getting on for 6 years).



Less than 6 years

CCJ for orange phone that was lost/stolen and cancelled but still got £700 charges on it, i wasn't aware of this until a month ago ish either as i'd assumed it was cancelled and didn't hear anything about CCJ or court appearance.. going to apply to have this set aside for those reasons.

£1500 Water rates - although i'm applying to united utilities trust fund to have a grant for this so i can make a fresh start with it.

£3500 rent - these are on my rent account in error as i was supposed to be receiving a housing benefit entitlement, but they didn't process my forms so this is being appealed and hopefully will be significantly reduced soon.

£1000 - council tax - same as above.

£800 Electricity bill - Needs paying as thought gas bill was also covering electricity too (thought was only one bill for both as same company).

£212 Old BT Bill.

£500 Overdraft on my fiances bank account (not my debt i know but i'd like to get it paid off asap as it's accruing £3 a month interest).



This is all i can think of off the top of my head but i do know that there are more.. i'll have to find my letters though so i can list them out.

Claire_DC

Oh and also.. is the debt just written off without consequence, do you know how this all works? Only would like to be totally clear about my situation as i've had my head in the sand about this for way too long.

As i said it's not limited to the above debts so you may find me coming back with more debts being added into the thread as i remember them or find the letters concerning them.

Congrats on pregnancy too. xx

roswell

Best bet would be to get copies of your credit files these will show any outstanding debts under 6 years.

zzzLazyDaisy

Just to clarify - the six years runs from the last date that the debt was acknowledged. In English, this means that any payment on the debt, or any correspondence in which you admitted the debt was owed, starts time running again.

So, although the debt itself may have been incurred more than 6 years ago, if (say) you made a payment, or even a promise to pay, when the debt recovery people contacted you, the six years starts again from that date.

A check with the credit reference agencies should give you an idea of where you stand on this.

Good luck and well done for taking the first step.

(BTW I have a box of picture frames upstairs. All bought at different times, all identical, and none of them the right size for any of my pictures..... you are right, there is no logic to it!)

less2303

If there has been no payments or acknowledgements within six years, then the debt is barred by the Limitation Act 1980 (section 5) IF it is based on contract and not on property (i.e. a mortgage shortfall) Mortgage shortfalls are barred after 12 years.

Harassed_2

If you meet the provisos above, i.e. no payments or written admission of the debt in six years, if and when anyone contacts you about it, respond with the following letter sent by Recorded Delivery. More info on the links at the bottom.

WITHOUT PREJUDICE

Dear Sir/Madam

Re: Account No/Reference No:

No debt is acknowledged to you. You have contacted me regarding the account with the above reference number, which you claim is owed by myself.

I would point out that under the Limitation Act 1980 Section 5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”.

The last payment or acknowledgement of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me in the relevant period under Section 5 of the Limitation Act, I suggest that you are no longer able to take any court action against me to recover the alleged amount claimed. Any such action WILL be defended and challenged on the above grounds.

I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed. If you do not supply such confirmation, I will be making a complaint to the statutory authorities.

I look forward to your reply.

Yours faithfully

(Your signature)

http://www.lawcom.gov.uk/docs/cp151apa.pdf

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Claire_DC

See this is the thing, i don't know if i've been in touch with the people for the credit card or not.. and i don't want to start poking around, just in case it reminds them of it and they find out i have contacted them. I just get so confused with who i've spoken to and who i haven't etc.


I know the store card balance, i have been in regular contact with over the time as they have my phone number so when they phone i have to answer as i couldn't tell who it was who was phoning on my home phone anyway.. so i know this is still valid, but if i could get rid of the £3500 one then it would make my debt free quest SO much easier. I don't want to just disregard it and then it bite me on the bum, but then i don't want to keep worrying about it if i don't need to be.

I'm also moving house soon and don't want to take my older debt there is possible (ie i wouldn't like to tell them of a change to address as i don't want to give the property/address a bad credit scar so to speak) so i'm in a real dilemma about how to tackle things.

My credit file shows an avon debt that is being cleared as i type (they were due to collect some items but carrier has had repeated no shows so they're clearing the account balance for me and seding a different courier for items) but the only other debt it shows on there are my CCJ and the company who are working for my bank overdraft which is currently at £590 and it says i defaulted on 01/03/02.



Thank you for all your posts so far though, i really appreciate it and hopefully with your help i can get well on the way to being debt (and worry) free. xx

Ordinary_Joe

Debt can follow you from your old place to a new place. The system can link people from one address to another even if you don't tell those who you owe credit to.

The other point is correct that it will be 6 years from the last payment. Any CCJ's after that will also remain on file for 6 years

If you try and apply for more credit and many credit providers will ask what your previous address was if you lived at your new address for less than a certain length of time.

Good luck with getting out of debt but (and forgive me if I'm wrong) I was a bit worried that the post mentioned some large debts on basic expenses such as water that just looks like no payments were ever made on made. It just reads like you're trying to hide from your old debts (which I can understand), but I wouldn't say you can rely on escaping so much with any future debt if you repeat the same behaviour.

Good luck staying out of debt though

Claire_DC

Heya, I'm not looking to hide from old debts.. we are moving because my fiance has bought us a house as we don't want to live in this pokey little flat with smackheads living next to us any longer.. especially as i have depression and it does me no good to live in these conditions. It also makes more financial sense to pay £50 a month extra and own the place we're living in.

My partner said he would take on the financial sides of things while i get myself sorted, by having his name for all the bills whilst i gave him my share of the payment to put into his bank - which would limit association of my debt to the property i would have thought?

Because i have depression and have had trouble coping with bills and stuff in the past, both mentally and financially i have gotten into a bit of a mess with some things.. some of the things as i have written, are genuine mix ups that are hopefully going to be sorted. I am a lot better with money now that i am with my fella as although my depression is still quite bad, he helps me to deal with it all a bit better.

I just want to get better and to get out of debt so that i can actually start living the life of a 25 year old and fulfilling my ambitions, not living with depression and reliving traumatic experiences forever more like i have for the past 7 years. It's just hard finding where to start and what to tackle first really.


Thanks for the reply though, it's appreciated.