Newbie with some posible stupid questions

tyco

Hi guys



I’m new to all this so please excuse my possible stupidquestions.



Following a bad divorce I now owe in the region of £55k inunsecured debt. I have no assets, housewas sold to cover mortgage, arrears and solicitors fee’s from the divorce andcar was sold to cover bills.



I am not sure the full amounts or who I owe as the debtshave changed hands a couple of times over the last few years and if I’m honest Ihaven’t been paying attention and just binning the letters.



I haven’t paid anything to most of my creditors since mid2007. Divorce lasted from Feb 2007 – Jan 2010 and during this time I prettymuch stopped paying all but the essential bills (utilities, mortgage and food).



Once the divorce was finalised I started to look at what I owedand how I was going to pay it off. In mid 2010 it was sitting at just shy of£55k owed to about 16 companies. I started calling these companies trying to restructurewhat I owed and trying to start paying something. This latest about 5 phonecalls when one company said they wouldn’t except anything less than £375 amonth. So I pretty much gave up and berried my head in the sand.



Due to a new relationship and the prospect of getting marriedagain I have started looking at this all again. from memory to service all thedebt it would take around £2200 per month and would take in the region of 20years to pay off. Looking at my finances I struggle to put aside £50 so thisreally isn’t an option.



I have spent the last 3 years bouncing from place to place,sofa to sofa, friend to friend and haven’t really been chased but I have justmoved in with the Girlfriend and am afraid people will start coming after herfor what I owe.



So here are the questions



If I do go down the route of bankruptcy will my Girlfriendbe liable for my debt?



Once my name goes down on the council tax (currently listedat my parents, same address I use for work and bank account) will debt collectorsbe able to take her belongings?



What’s the best way to get an idea of what I owe and to who.I did do a free trial of Experian but they seem to show the same debt with differentcompanies.



Thanks for your time in ready my post

Browntoa

your girlfirend is not liable for any of your debts now or in the future , even when you are on the electoral role this does not change

National_Debtline

Hello there.

If you've not made any payments on your debts since mid 2007 it could well be the case that they could be close to becoming 'statute barred'. Here's some information taken from our fact sheet on the Limitation Act 1980:

What is the Limitation Act?

The Limitation Act 1980 sets out the rules on how long a creditor (who you owe money to) has to take certain action against you to recover a debt. The time limits do not apply to all types of recovery action. Also, the time limits are different depending on the type of debt that you have. This fact sheet outlines when you can use the Limitation Act, and includes a sample letter you can use.

Limitation periods for debts are important, because if the creditor has run out of time, you may not have to pay the debt back.

What does ‘statute-barred’ mean?

If a debt is barred under statute, it means that by law (the Limitation Act), the lender has run out of time to use certain types of action to try and make you pay the debt.

Statute-barred does not mean the debt no longer exists. In some circumstances, the creditor, or a debt collection agency, can still try and get money from you. You can choose to pay if you wish. Even if the debt is statute-barred, it may still be on your credit reference file. This may make it harder for you to get further credit.

When does the limitation period start running?

Whatever the limitation period is, for example six or twelve years, it is important to understand exactly when the time limit started. Under the Limitation Act, time starts to run from the 'cause of action'. This is not the same for all types of debt, so be careful. In this fact sheet, we look at the cause of action for the main types of debt. If your debt is not included,

Unsecured credit debts

Unsecured credit debts are things like credit cards, store cards, personal loans and catalogues. When using the Limitation Act, these debts are often called ‘simple contract debts’.

The Limitation Act says that the limitation period for simple contract debts is six years.

The cause of action (when the limitation period starts running) for simple contract debts, is usually when your agreement says the creditor is able to take court action because you have fallen behind with payments. This is normally after one or two missed payments. Sometimes, a debt will have no set repayment time. For these sorts of debts, working out the cause of action is more difficult.

A simple contract debt will normally be statute- barred if:

• the creditor has not already obtained a county court judgment (CCJ) against you;

and

• you or anyone else owing the money (if your debt is in joint names) have not made a payment towards the debt during the last six years;

and

• you have not written to the creditor admitting you owe the debt during the last six years.

More reading here:

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

It could be worth checking to see when the last payments actually were as it appears that you could be quite close to having some debts being subject to these rules.

Best wishes,

David @ NDL.