What debts become Statute Barred?

marchioro

Just a quickie this morning!

What kind of debts become statute barred?

Unsecured loans, bank accounts, etc??

Thanks

sourcrates

marchioro wrote: »

Just a quickie this morning!

What kind of debts become statute barred?

Unsecured loans, bank accounts, etc??

Thanks

Almost any unsecured debt can become statute barred, those that cant include :

Council Tax Debt
Council Tax can become Statute Barred. If the Council Tax was due more than 6 years ago then the council are unable to take further court action against you to force the payment of the debt. For example they are not allowed to apply to the Court for a Liability Order which would then allow them to instruct a Bailiff.
However, it is unlikely that the council will allow Council Tax arrears to remain unpaid for more than 6 years.
Income Tax and VAT Debt
There is no time limit for recovery of HMRC debts such as tax or VAT owed and any related interest. As such these debts cannot be Statute Barred. However National Insurance is not classed as a tax and is therefore subject to a six year limitation period.
Mortgage Shortfall Debt
Previously secured debt such as mortgage shortfall debt will only become statute barred after the tests described above have been met for 12 years.
Overpayment of Benefits
Benefit overpayments are caught by the Statute of Limitations. As such DWP has 6 years to take action through the courts to recover overpayments of benefits such as income support, job seekers allowance, pension credit, housing benefit, council tax benefit and paying back social fund loans. The time starts running from the date of the final decision made on the overpayment and from when the social fund loan was due to be paid.

marchioro

Thanks!

I appear to have older loans which do not appear on my credit file, but I get the occasional letter from them.

One has been handed over to a collection agency and one is still handled by the original bank, I'm guessing that it doesn't matter who handles it?

sourcrates

marchioro wrote: »

Thanks!

I appear to have older loans which do not appear on my credit file, but I get the occasional letter from them.

One has been handed over to a collection agency and one is still handled by the original bank, I'm guessing that it doesn't matter who handles it?

If there has been a 6 year period without payment or written contact, then the next time they write to you, respond with a letter telling them the debt is time barred, it's then up to them to prove otherwise.