Pursuing Debts after 6 years.

[Deleted User]

Discussing the debt in writing and setting up a payment plan and making payments will reset the clock on it becoming statute barred.

Also when the debt does become statute barred, it just means they can't use the courts to enforce it.

They can still pursue you for it directly, and you still owe it.

GMac14

Understood. Looks like I will have to see how it goes over next 3 to 4 months as thats how long it will take to pay back the £950. Once thats done I guess I will have to put money to one side, settlement will have more chance of being accepted if its a one off payment rather than 3 payments, so either way its going to be some time before I have enough to one side to make either a 50% offer of payment.

GMac14

Replying to Gary D
Yes, I understand that, was going to try to discuss the other amount with them, quoting the other reference number only, in order to advise them of my new address, then, I havent actually discussed the larger debt or acknowledged it, so clock is not then reset.

Once its statute barred, over 6 years old it will drop off file if no CCJ, so since Im going to be trying for a mortgage in maybe 18 months, that debt dropping off in July next year would be ideal, even if legally I still owe it/cannot take me to court, I would expect its not something they would pursue if it became statute barred.

GMac14

The option of a payment plan / settlement figure is last resort scenario which I might have to consider if most people on here suggest that is the best course of action/only way to avoid CCJ, as currently, if they go CCJ route I dont have the funds to pay off in total within 30 days.

[Deleted User]

OK

But obviously be warned that a CCJ will also reset the 6 year clock, unless you pay it in full within 30 days of being issued the CCJ.

Someone else needs to clarify this as well, but I am sure they can still push for a CCJ even if you're on a payment plan

GMac14

Yeah, thats the dilemma, small chance of potentially getting statute barred versus huge risk of CCJ then being on file for 6 years.

As said Im not going to be in a position to contribute to that debt for 4 months, as need to pay off the other first, but, considering Im hoping to get a mortgage in approx 18 months, is my best/most sensible course of action to actually make payments towards this in 4 months once the other is paid off?

Could make stretch to paying £200 a month off in 4 months time, gives me 14 months or so of payments before trying for a mortgage, so would maybe pay off £2,800 and have a balance of £3,000 left to pay.

Whats the ideal scenario when applying for a mortgage, have zero debts? Would £3k owed make much of a difference? Joint income is £60k, house price range around £160k, due £10k equity from ex house and wife would try to save some so we have more than the basic 5% deposit, but probably no more than 7.5%

Expert advice appreciated

[Deleted User]

You can make payments yes, but the account will show AP on your files and will then drop off 6 years after it has been satisfied.

Regards a mortgage - speak to a broker who can advise on what to do in this situation.

sourcrates

Creditors must follow the pre-action protocol and attempt to come to an agreement with you prior to legal action been commenced.

I have noticed of late these pre-action letters are also backed up by email as well, to be lawfully binding they must send it in writing.

So (dependent on the creditor or their tame solicitor) you may get advanced warning by email.

System

GMac14 wrote: »

OK, many thanks. It guess it would be too much to expect for them to make me aware of an impending CCJ by e mail or phone call?!

Yes because they legally have to notify you in writing.

D_M_E

If you have had no contact about the £5800 since 2011 and have not acknowledged nor made a payment - this is important - since 2011, it matters not if they updated or defaulted it later, I suspect that the £5800 would have become statute barred in 2017 (or 2016 if you're in Scotland).

Try sending the letter at

https://www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-%28sole-name%29.aspx

Thanks to Sourcrates for the link