how long til debt is wiped?

victoriav

Family member in a rented house was about to go bankrupt, Owed four credit card debts, came out of work, however first before bankruptcy, she agreed to pay debt in smaller instalments until finances improved, they didn't and she then found each credit card (there were four) stopped sending bills with giro slips on, so she couldn't continue pay instalments - (and she has no bank account, so no cheque can be sent) - and then the credit card companies,sold debt to debt collectors who continually rang her but she never answers as she has informed them all already of the situation...they don't send giro slips, they demand full and immediate payment, an impossibility for her, Consequently with the exception of one card debt she still pays regular, just £200 owing, she hasn't been able to pay the others.


This has gone on for four years. After four years is the debt wiped off?

tigerfeet2006

The debt is never 'wiped off'. If it hasn't been acknowledged in 6 years then the debt is Statute barred and it is not enforceable. As she has been paying them then they will not be SB for a while.

Please get her to ring someone like National Debtline and have a chat with them about her situation.

Is there a particular reason she has no bank account?

victoriav

Thanks for reply. She has no bank account because she has no money to go in it,, her benefit is paid into a post office card account so that the banks cannot take money from it for whatever reason they may want to. She has no direct debit because it was one of the reasons that gave her problems, one more than one occasion, banks honouring a higher payment request to utility companies - usually said to be 'an error' by the utility company, but by then you have to chase it up put it right and the banks charge you for overdrawn, with neither utility or bank accepting blame...so I believe this to be two main reasons that she has no bank account. infact her old bank chose to close her account after she kicked up a fuss and they didn't give a reason just said 'it was done by head office' and further correspondence has been meaningless. This account had been used for 40 years.....make of that what you will....and she was unable to access any money left in it.


Ah then 'statute barred' and unenforceable after 6 years...that explains why that particular bank don't have to give her her own money back out of the account she had with them...I believe it could be that long, though I may be wrong...it may not be long as 6 years. (since that occurred)

National_Debtline

Hi Victoria


Your relative was about to go bankrupt four years ago. Is that still an option for her now?


Alternatively, if her debts are below £20K she may be able to do a Debt Relief Order (DRO) - offers the same outcome as bankruptcy but at lower cost (£90 as opposed to >£500).


Whatever she chooses to do, there will be basic bank accounts available if she needs one to make life easier. I appreciate that her confidence in them may have been eroded by previous events but as a general rule, as long as you don't bank with anyone you owe money to, your funds are under your control.


Some fact sheets on bankruptcy/DRO/bank accounts you may find useful:


https://www.nationaldebtline.org/EW/factsheets/Pages/01%20EW%20Bankruptcy/Default.aspx


https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20%28DROs%29/Default.aspx


https://www.nationaldebtline.org/EW/factsheets/Pages/505%20EW%20Basic%20bank%20accounts/Default.aspx


Dennis
@natdebtline

victoriav

Many thanks for your time to reply, much appreciated and I shall pass info on

victoriav

I tried to put the 'cheers have a beer' smiley - alas it wont let me...