Statued barred and ccjs

Caprizzosa

Hi,
Apologies if there is another thread like this one...
My partner has a debt that came up to the 6 year point 6 days ago and another one that will be 6 years old the 15th January next year.
He has received a letter for both with a issue date for a ccj and he needs to send defence in 28 days. That will be Xmas period.
I know it is noughty to ignore your debts but times have been are are still difficult. We are trying our best.
My questions are: Is the first debt statued barred on the day it got to 6 years from date of default?
The second one is almost up. is there a chance that because of the xmas period things can come to a stop id he does nothing and hope he does not received anything else until after the 15th January which is when the second debt comes to the 6 year old mark?

Thank you

Caprizzosa

may just add that experian says account defaulted 15th January 2008 but noddle say account defaulted 24th October 2007. Which one is correct and how to find out as if the noddle one is correct then that debt should also be statued barred as it was 6 years from default date last month?
Thanks again!!

Tixy

Hi

Caprizzosa wrote: »

My questions are: Is the first debt statued barred on the day it got to 6 years from date of default?

No - the date of the default is not relevant. It is 6years from the date he last made a payment or wrote to the creditor/debt collector to acknowledge that he owed the debt. And only if they don't commence court action before then.

Caprizzosa wrote: »

The second one is almost up. is there a chance that because of the xmas period things can come to a stop id he does nothing and hope he does not received anything else until after the 15th January which is when the second debt comes to the 6 year old mark?

They have 6 years to commence court action, it sounds like they have commenced court action already - so unless it is already 6years then this debt won't know ever become statute barred.

Caprizzosa

Sorry for the stupid questions but how can he find this out? I believe it is an overdraft debt from an account he stopped using. He doesn't believe he has been in touch with them ever since. How can he find out about the age of both debts? Specially the second one as noodle report shows it as a year older than experience and it might be then statued barred? So he can then send defence saying he doesn't owe anything?
Thanks again

Tixy

You cannot tell from a default date when a debt will become statute barred.

Ideally he would need to check his own records to see when he last made a payment to the debt.

With an overdraft the rules are slightly different and it can be harder to tell when a debt becomes statute barred. It could be the date the account was last used/ or he paid towards the debt, but it could be the date the overdraft was formally recalled if that was later.
Does he have his paperwork from then that he can check back on the old bank statements or look for a letter recalling the overdraft?

He cannot really send a defence to say he doesn't owe anything - because he does. Even if the debt was statute barred he would still owe the money.

If the debts were definitely statute barred then that would be the defence he would use, that the debts are covered under the provisions of the limitation act.

If he does use that as his defence and the creditor can prove they are not statute barred then it is likely a CCJ will be granted.

It might be worth him reading this factsheet and perhaps giving national debtline a call for their advice on his situation - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Caprizzosa

Thanks Time for all the advice. He thinks he still has the papers but he knows is that he opened a new account in June 2007 where he transfered the do he had in the account in debt. It was a current account with a big overdraft that was taking his wages. He never made a payment into that account since he opened the new one and he never made an agreement with the lender or anyone else to make any payments towards the debt. He unfortunately chose to ignore it and forget about it. The credit file says that the lender set the account to default in January 2008, 7 months after we last used the account?

Caprizzosa

Sorry I meant to say thanks Tixy! ( horrible predicted text)

National_Debtline

Hi Caprizzosa

As it stands there are a couple of ways this could go:

#1 - If the claim(s) are left undefended then obviously CCJs will result;

#2 - If the claims are defended unsuccessfully then CCJs will result and will also include any extra costs incurred as a result of the defence, such as those for arranging a hearing;

#3 - If the claims are defended successfully, well then obviously they are thrown out at no extra cost to your OH.

You refer to a deadline of 28 days to file the defence. Do ensure that your OH files the Acknowledgement of Service ASAP to request this time extension (if needed).

Please also clarify - has your OH received 2x separate claim forms (N1) for the two debts, or just the one??

As Tixy says above, it can be hard to know when the cause of action has occurred on an overdraft, and harder still for your OH to establish when they last made any payments into said account.

One approach may be to submit a defence based on a belief that the debt may be statute barred; the risks of this are outlined in point #2 above i.e. court costs being added if unsuccessful. In some cases the courts have been known to adjourn their decisions to allow the claimant "reasonable time" to produce evidence that the debt is not in fact statute barred.

Regards

Dennis @NDL