old debt agreements

doddsey73

Hi,

I wonder if anyone can help me.

In 2005 I went to Citizen Advice as I was having financial difficulties. They contacted all my debtors and a fixed fee was agreed interest free. I am still now paying one of these but was wondering if this falls within the 5 year payments and then the debt can be written off as some ivas state. Can anyone advise if I still need to continue as no documentation of agreements where ever given to me with the terms.

redpete

On that basis can I stop paying my mortgage because it has been going for more than 5 years?

(The answer is "No". The 'statute barred' limit is 6 years (maybe different in Scotland) and it does not apply if you have made payments or otherwise acknowledged that the debt is yours within that period.)

doddsey73

How do the IVA companies get such a high percentage written off after 5 years then?????

Common_Sense_2

It sounds like you are in a debt Management Plan, not an IVA.

doddsey73

Does that mean that I have to pay all the remaining debt or can I call with an offer to pay a percentage to write the deby off please??

Common_Sense_2

you pay it off, either by continuing to pay the payments you are paying now, or by calling all your creditors and asking for settlement figures and paying them off in one lump sum.

redpete

I thought your question was about the statutory limit for unacknowledged debts.

If you were asking if the lender is likely to accept a full and final offer to clear the debt then that is dependant on the lender, the amount owed and the amount you pay each month now. I don't know the answer but I suspect they won't say you can just stop paying and they will be happy - you are currently paying £x per month, why would they voluntarily give this up for nothing in return?