Is there a debt pay off time limit

atr232000

Hello

I guess this is a simple question but I fear the answer will be complex.

I have a debt with a collection company and I have been making token payments for some years. Is there an expiry date to this debt, when the debt becomes to old and gets wiped.

Not that I'm getting away from my responsibility but I heard someone else mention it and I wanted to clarify.

Thanks

A

zzzLazyDaisy

I suspect you are thinking of the 6 year limitation period on debts.

However, this is where the creditor has a maximum of 6 years from the last time the debt was acknowledged or payment made to take the debtor to court.

Obviously this 6 yr rule cannot apply to your debt as it stands, since you are still making payments.

atr232000

Thanks for the quick response. Just as I suspected

fermi

What sort of debt and when was it first taken out?

Are you ever likely to clear it, and do you have other debts? If so, how much?

Could be other options.....

atr232000

I have old bank loans ..... Been paying them for over 6 years on token payments to collection companies. I would say its about 9k over about 7 debts. Some are as low as £500 approximately. I can't see me never clearing the large ones

fermi

So if credit cards, loans or catalogues taken out before April 2007, it may be worth checking to see if they have correct agreements/paperwork needed to enforce them.

See: Getting information about your credit agreement

Do you have property with equity etc to protect? If no, another option might be a Debt Relief Order or similar?

Who have you taken debt advice from?

Or just continue with token payments if you are happy with that, but if there is no real prospect of ever paying it all off then even that may seem a bit pointless..

atr232000

All would have been before 2007 easily.
I got my advice from the CAB but that's was many years ago.
Is it easy to get debt releif , can you do it yourself or do I need guidance?

atr232000

How do on if I qualify for debt relief, or the 2007 date will help. Oh don't have property either

fermi

A debt relief order needs to be done through an approved intermediary.

Fist step is to get some advice from one or more of the organisations in this link.

---> IMPORTANT - Where to seek professional impartial advice about your debts.

Most of them have intermediaries, or can put you in touch with.

More importantly though, they will go through all your options with you. That may include a DRO, but could also be settlement offers and simply requests to write of balances due to hardship etc. Point being, they should help guide you down the route that makes most sense for you long term.

atr232000

Thanks for your advice

fatbelly

atr232000 wrote: »

All would have been before 2007 easily.
I got my advice from the CAB but that's was many years ago.
Is it easy to get debt releif , can you do it yourself or do I need guidance?

You need to do it through an approved intermediary, and CAB still are the biggest player here, even though the government pulled the plug on the LSC funded intermediaries in April.

There's some info here:

Factsheet Debt relief orders

DROs only came in in 2009 so if you got your advice from CAB before then, a DRO wouldn't have been an option.

Provided you are in rented accommodation and don't own a car worth more than £1000, I suspect this may be your best option. There's a £90 fee, payable in instalments at the Post Office.