Debt wiped after 7 years?...

coco89_2

Hello

I'm new to posting on this site, so please bear with me! I really need some sound advise before looking to speak to anyone formally.

I have a someone close to me who is in a difficult financial position.

He owned a property which through difficult circumstances was reposessed around 2007/08. In addition, there was a loan outstanding and a couple of store cards etc. The mortgage was only 18 months old, and so still a majority of the value outstanding.

At this point, because of the time since, and 'burrying head in the sand' he doesn't know who he owes money to, and how much he owes.

He has had no contact with any of the companies who he owes the debt to in around 4 years to my knowledge, and hasn't been chased for recovery of any debt for about 2.

Where does this debt stand now?
Is it true that after 7 years, a 'statue barred' is applicable to him?
Should he declare himself bankrupt?
If he was to marry, would the bankruptsy affect his partner?

Thanks in advance for your help

fermi

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

The statute of limitations (6 years) may apply for the store cards and the loan (assuming unsecured), but the SOL for mortgage shortfalls is 12 years so that certainly won't be covered.

Even for debts that are covered, they are not wiped. They are just not enforceable by a court any more. Plus if a CCJ has been granted in his absence, then again it won't apply.

Maybe refer him to that factsheet?

Trajal

My suggestion is that he does a request with the credit agencies to see what is listed against him.

You can do a free multi-agency check with check my file. Just be sure to cancel afterwards if you don't wish to keep using their service.

(I use this service regularly, I've cancelled a couple of times, always problem free and they are very helpful and informative).

http://www.checkmyfile.com/