Statute barred debts and the Limitation Acts

cpwp

Hi, a very good thread.

My circumstances may make this different. Basically Iwent into business with someone in 2003. We got a bank loan for £30k. Turnedout the big manufacturing customers he said he had did not want the product andI resigned from the company in 2004. Other people became directors. Thoughtthat was it. In 2005 the bank came after me for the full cost of the loan. Iused local solicitors to contact the bank for details as I had not had anydealings with the company since 2004, the bank did not respond.

In 2006 started getting letters from a debt collectionagency, my solicitor said ignore, which I have done. A couple of months ago the collectors wroteand said they were passing it onto their solicitors. I have had 2 letters from theirsolicitors, the last threatening court action.

As this relates back to 2004 when I had to resign fromthe company, 2005 when the back write to me and 2006 when the debt collectorswrote to me, no letters were acknowledged. Am I covered by the Stated Barredrule?

fatbelly

cpwp wrote: »

Hi, a very good thread.

My circumstances may make this different. Basically Iwent into business with someone in 2003. We got a bank loan for £30k. Turnedout the big manufacturing customers he said he had did not want the product andI resigned from the company in 2004. Other people became directors. Thoughtthat was it. In 2005 the bank came after me for the full cost of the loan. Iused local solicitors to contact the bank for details as I had not had anydealings with the company since 2004, the bank did not respond.

In 2006 started getting letters from a debt collectionagency, my solicitor said ignore, which I have done. A couple of months ago the collectors wroteand said they were passing it onto their solicitors. I have had 2 letters from theirsolicitors, the last threatening court action.

As this relates back to 2004 when I had to resign fromthe company, 2005 when the back write to me and 2006 when the debt collectorswrote to me, no letters were acknowledged. Am I covered by the Stated Barredrule?

Almost certainly. Even if the 2005 contact counted as acknowledgement, as long as your business partner has left it alone and no court action was started, it became statute barred in 2011.

As it's a business debt you may want to let Business Debtline guide you to the appropriate response.

cpwp

I have spoken to Business Debtline. They are very good. The lady asked all the right questions and gave good advice, including a link to a fact sheet which has a sample letter to send.
First class

fatbelly

cpwp wrote: »

I have spoken to Business Debtline. They are very good. The lady asked all the right questions and gave good advice, including a link to a fact sheet which has a sample letter to send.
First class

No probs. They are good and know their way around business debts, which can be more complex and nastier than ordinary consumer ones.

fermi

Excellent. Hope that sorts it.

lynseymak

I have 2 questions..hope you can help

If a Scottish person has a debt to a English company is the SOL 5 years or 6?

Also - what if the creditor starts court proceedings and the debt becomes statute barred during the proceedings and before any judgement?

Thanks

Lynsey

fermi

Usually, as far as I've seen, the creditor is obliged to take any legal action through the legal/court system where you are "resident", and as such that court applies their jurisdiction's law to the enforcement.

To be "resident" in a jurisdiction I think you need to have lived there for either 3 or 6 months?

The Limitation Acts give a time limit for the creditor to "bring proceedings", which is it's normal interpretation is when any court papers are received by the court. So as long as the creditor gets that paperwork to the court to start legal action before the 5/6 years has elapsed, they will have beaten the time limit.

Toffee1878

Hi,

Is there anyway of finding out when you actually made a payment to a company and therefore knowing when a debt is due to become statu barred ?

Thanks

Flosspop

Hi, quick question. Can you be taken to court for a ccj right up to the last day before the six years before a debt becomes statue barred?

Thank you

fatbelly

Flosspop wrote: »

Hi, quick question. Can you be taken to court for a ccj right up to the last day before the six years before a debt becomes statue barred?

Thank you

The creditor can commence a court claim at any time.

A statute barred defence would only work if there had been a full gap of six years where there was no acknowledgement of the debt by payment or in writing, on the day the court claim was made.