is it true that some debts are written off after a certain length of time?

Squidge2009

i owe money on a credit card i took out in 2002 and could not afford the payments anymore in 2006, so just stopped paying it completely in about december 2006 (silly of me i know).

i ignored debt letters and in 2010 i moved to a new property. i didn't hear anything until recently i received a letter from them at my new address :eek:

not sure what to do. tbh my credit rating is completely shot to bits anyway so i am not too bothered about that. and i don't want to borrow again, i have been there done that and paid it all off apart from this one thing. but i can't really afford to pay it

i have heard that debt is written off after a certain length of time (not sure how long) - does anyone know how true this is?

thanks for reading. any replies most appreciated x

NeverEnough

I don't think it ever just vanishes, to be honest, bankruptcy is the only way to do that, or better still, paying it off!

But if a creditor has not contacted you and you have not responded to their contact, within 6 years of defaulting on an account, I bleieve you can no longer be legally pursued for the debt. The debt still remains owing however, and some Debt Collectors will still try to pursue you for it, but will have no means of legal enforcement - ie no judgements or bailiffs etc. however, you need to take care on the timescales of this, as it must be debts of 6 years or older.

Tixy

No a debt is not written off after a particular length of time.

A debt is removed from your credit file 6years after the default date per the credit file. But if not paid then the money is still owed.

A debt is statute barred if ther is a period of 6years (5 in Scotland) where you have
-paid nothing towards the debt
-not acknowledged that you owe the money in writing
-if the creditor or debt collector has not already taken you to court.

When a debt is statute barred then the money is still legally owed but your creditor cannot take court action against you to obtain a court judgement (or if they tried you could defend the court action on the basis of it being statute barred).
In addition if a debt is statute barred and you inform the creditor/debt collector that you do not intend to pay - then they have to stop chasing you for payment.

If you stopped paying in Dec 06 and they have not obtained a CCJ against you then it would be statute barred sometime in Dec12. If you pay anything towards it now - or write to admit you owe the money, it won't become statute barred.
Also if they commenced court proceedings against you now - then it wouldn't become statute barred.

You might choose to risk ignoring the letters and correspondance until December/Jan - in the hope they don't take court action.

Gordon_Hose

Debt is never written off. It will always exist, but after 6 years (5 in Scotland) from the last payment or written acknowledgement it will become Statute Barred and they can't enforce it through the courts.

rdchick

You need to make sure there are no CCJ's to this debt and that you have not made contact or sent payment to this debt in 6 years (if in Scotland it's 5) however if there is a CCJ then you will be forever in its debt until it is paid off. So in theory if what you say is correct then it should be statute barred in December of this year (if in England) hope that helps xxx

rdchick

Lol 3 people said the same thing in 3 mins! xxx

Anthorn

If a payment has not been made and you haven't contacted the creditor in writing in the last six years and the creditor has never taken court action against you then according to the Limitation Act 1980 the debt is unenforceable: Creditors have a limited time during which to enforce a debt and that period is 6 years.

The grey area is that when you moved the debt was not statute barred and the creditor didn't know your new address.

Personally, I would go for statute barred and let the creditor prove otherwise!

ampafc

You should make some sort of an effort to pay what you owe.

Try to be responsioble by offering a monthly payment plan or something like that.

Anthorn

ampafc wrote: »

You should make some sort of an effort to pay what you owe.

Try to be responsioble by offering a monthly payment plan or something like that.

No: If it's unenforceable by law then it's unenforceable. The creditor missed the boat so to speak which is wholly the fault of the creditor!

Supermop

ampafc wrote: »

You should make some sort of an effort to pay what you owe.

Try to be responsioble by offering a monthly payment plan or something like that.

I totally agree -- don't want to sound all pious, but a lot of people struggle to pay debts. It's unfair to try and get away with not paying anything.

Even tiny regular payments would be some ethical gesture, they might even agree on a smaller figure to settle.

Tixy

Anthorn wrote: »

The grey area is that when you moved the debt was not statute barred and the creditor didn't know your new address.

The creditor could still have taken court action in the 6 years regardless of knowing the debtors address or not.

If they didn't and if it gets to 6years its black and white