random stat barred question

double_mummy

something i have been wondering since visiting these boards

when does a joint account become statute barred?

eg couple take out a joint unsecured loan on 1/1/2000 the final payment is made on the 31/12/2000 with an amount owing.

if neither of them make a payment it is statute barred on the 1/1/2007

if partner A makes a payment during that time does it also reset the clock for partner B?

if it went to court then could B successfully argue that as they have not made a payment then it is statute barred for them and not partner A?

(this is presuming neither make an acknowledgement in writing)

any ideas?

fermi

No, a payment made by either liable person resets the clock for BOTH them.

It is different for acknowlements, where an acknowledgement by either liable person only resets the clock for the person who made the acknowledgement, not the other person.

That can seem an odd way for it to work depending on how you look at it, but that is what the legislation says on the matter.

double_mummy

thanks fermi

National_Debtline

Hello there,

If there were no payments or acknowledgements, the date that the debt became statute barred is likely to be a month or two after the 1st January 2007. It is generally the case that a creditor will not be able to sue for the full amount under the contract until it has breached. The terms of the contract usually state that they are able to claim that the loan has been breached once a couple of payments have been missed. I hope this makes sense. We expand on this point within our Limitation Act fact sheet.

Best wishes,

David @natdebtline

double_mummy

hey david thanks

i was just using that as a rough example for my question but any extra knowledge is always good