Unpaid credit card balances clears up withing a few years? True or not?

spartanic

Is it true that unpaid credit card balances that have been sold to collection agencies will eventually clear up within several years even though the balance was unpaid for? I'm not sure if this is true or not, sounds too good to be true. Anyone know?

Broken_hearted

Only if thyey have not managed to contact you.

immoral_angeluk

The debt will be statatute (sp?) barred after 6 years (ie unenforcable) from the last default date if you do not acknowledge the debt or make any kind of part payment towards it.

gembel

I also have heard about your debts been wrote off after a number off years if they are not payed. I have a friend who has been paying off her debts for the last six years (all throught dedt agencies). However, her partner chooses to ignore his debts and doesnt pay a penny of his. He believes, he will be debt free before his partner. I myself am in debt and have come to agreements with all my creditors.

bloomin_freezing

when i was made bankrupt last month the judge wanted to make sure that was the step i wanted to take as my debts only amounted to 14,000 and he said this amount was not huge. He suggested to me that i just ignore all of my creditors (as i had quite a few but only owed relatively small amounts to all, e.g £1000 each-roughly), and eventually as all of these debts were small the credit companies would write them off. Personally I chose not to as I didn't want to run the risk of baliffs knocking at my door or any other grief that i just couldn't handle.

reduceditem

In reality many companies will write of the debt before the 6 year period if you don't contact them. People considering this option as an alternative to bankruptcy may want to change their telephone number and make it ex-directory to avoid debt collection agencies ringing you. If your debts consist of credit cards, overdrafts, unsecured loans etc then it is very unlikely you will ever be taken to court and cosequently you are unlikely to ever see a bailiff. If people do come to your door (and this might happen initially) they will be agents of a creditor wanting to confirm your details and get a statement of expenditure from you etc. You have no legal obligation to speak to them and, if you want to take this path, just politely ask them to leave without even confirming your name. Any letters sent to the wrong address or with maiden names on etc should be returned unopened. This is a genuine alternative to insolvency for some and has the advantage that you'll have no bankruptcy against your name. In some ways it amounts to pretty much the same thing as far as your creditors are concerned as they would probably receive no money from your bankruptcy anyway.There are obvious down sides to the 'ignoring' route and I would encourage anyone considering it to consider if they have the fortitude to see it through. Plus its only of any real use if you undergo a real change in attitude about credit and financial responsibility.
Good luck.

thesaint

gembel wrote:

I also have heard about your debts been wrote off after a number off years if they are not payed. I have a friend who has been paying off her debts for the last six years (all throught dedt agencies). However, her partner chooses to ignore his debts and doesnt pay a penny of his. He believes, he will be debt free before his partner. I myself am in debt and have come to agreements with all my creditors.

Your friend is doing the right thing, Her partner would only be correct if the companies he owes the money to are not reporting it to the Credit reference agencies each month. If they are, he could find it is ongoing indefinitely...

bloomin freezin, the Judge in your case was acting very irresponsibly, it could've lead you to be in loads of more debt.