Credit card debts

andrlee

if i have made default sum payments regularly does that mean the debt never reaches a 6 year point? it is always enforceable even thought it has been passed on various times?
What difference does a CCJ make to a debt?

sourcrates

Hi,
Basically your asking is my old debt statute barred, right ?


The answer is no, if you've been making regular payments, makes no difference how many times a debt has been passed on.


The only way it becomes statute barred is if no payments are made for 6 years, and you don't acknowledge the account in writing for the same period of time.


If a creditor obtains a CCJ, then the debt never becomes statute barred, however, they are expected to collect on it before the expiry of 6 years.


They can also enforce the debt by various other means, including, an attachment of earnings order, charging order on your house (if a homeowner), even bailiffs at your door.


Hope that helps.

fruitisbad

sourcrates wrote: »

Hi,
Basically your asking is my old debt statute barred, right ?


The answer is no, if you've been making regular payments, makes no difference how many times a debt has been passed on.


The only way it becomes statute barred is if no payments are made for 6 years, and you don't acknowledge the account in writing for the same period of time.


If a creditor obtains a CCJ, then the debt never becomes statute barred, however, they are expected to collect on it before the expiry of 6 years.


They can also enforce the debt by various other means, including, an attachment of earnings order, charging order on your house (if a homeowner), even bailiffs at your door.


Hope that helps.

Is it different if the account has defaulted?

Ok, so two examples.
you get a debt, you can't afford to pay, you make small token amounts. The debt is never defaulted so there is no 6 years from Statute barred date.

scenario 2, you get a debt you can't afford to pay, you get a default. You later on agree a payment plan, are you essentially restarting the clock to 6 years of enforcement?

Also, I'm assuming enforcement and it still showing on your credit file are separate issues?

sourcrates

fruitisbad wrote: »

Is it different if the account has defaulted?

Ok, so two examples.
you get a debt, you can't afford to pay, you make small token amounts. The debt is never defaulted so there is no 6 years from Statute barred date.

scenario 2, you get a debt you can't afford to pay, you get a default. You later on agree a payment plan, are you essentially restarting the clock to 6 years of enforcement.

Also, I'm assuming enforcement and it still showing on your credit file are separate issues?

Defaults don't count toward a debts statute barred status, only payments, or written acknowledgement.

The statute barred clock runs from the time of the last payment made to an account, that is termed the "cause of action date".
Not necessarily the default date, as that is usually at few months further down the line.

Every new payment re-starts the 6 year clock , you are correct, yes.
A debt can have fallen off your credit file, but if unpaid, you are still liable for it, and could face legal action for recovery, again correct yes.