Tackling historic debt

existential

Hi,

First of all thanks for taking the time to read my post, I know its nothing new but any help/advice is much appreciated.

I have about £20k of historic debt - mainly accumulated from when I was young and university and stupidly I didn't understand the implications of missing credit card payments etc back then. I have several accounts, credit cards, store cards etc that have all defaulted with years of missed payments.

Because of this my credit score is 'very poor' and I cannot (having tried just about everything) get any sort of loan to pay off the debt or consolidate etc.

A friend told me that debt is 'struck off' after 6 years if no contact has been made at all regarding the debt - so first question, is this true? and if so what does that mean exactly, is it wiped clean and credit scoring improves etc?

In particular I have a credit card of £5.5k that defaulted about 8 years ago but the record is still on my credit file and I occasionally get a letter from a debt collection company although it never goes any further.

To be completely honest, the situation makes me very uneasy - If I suddenly won £20k or had access in some other way my absolute priority would be to pay these bills immediately, I don't like the thought of owing money and in my more 'mature' years have tried really hard to not get into any more debt. In short, I would prefer to pay these the proper way but at the moment its just not a viable option.

If the above is incorrect so I have any other options at all other than just paying them off slowly over say 5 years or something?

I cannot afford to pay off much each month.

Thanks in advance.

[purplesignup][/purplesignup]

StokieBecks

It isn't struck off as such. After six years of not paying/acknowledging the debt it becomes statute barred and is no longer enforceable through the court. However many lenders will persue court action before this time and will try to issue a CCJ against you. This is even more detrimental to your credit history and can be enforced with baliffs.

The default you say "was about 8years ago" you need to look at. Any defaults should drop off the file after six years (this does not mean the debt is wiped out though). Is it marked on your files as defaulted or late payment etc. Have you checked if there are any court judgements on your file.

Your best bet would be speaking to one of the free debt charities to discuss your options but you need to check your credit files first and see what is being reported

sourcrates

existential wrote: »

I don't like the thought of owing money and in my more 'mature' years have tried really hard to not get into any more debt. In short, I would prefer to pay these the proper way but at the moment its just not a viable option.

Hi,

This is exactly why the Limitations act 1980 was approved by parliament, so historic debt does not follow you forever.

First of all, where do you live ?

If you live in Scotland, for example, the law is slightly different, the creditor has 5 years to chase you for payment, if you have not made any payment, or acknowledged the debt in writing, and no legal action has been taken, for any period of 5 years, then the debt is expunged, and no longer exists.

In England and Wales the limitation period is 6 years, same rules apply as above, except after 6 years, the debt is not expunged, it still exists, but all legal means are removed from the creditor, so they can still ask you to pay, but cannot enforce the debt through the courts.

In either case, if you are contacted about an historic debt, and you are sure the limitations act applies, then you should respond with this letter :

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

You must inform the people chasing the debt that it is statute barred, in writing, otherwise they can, and will, still pursue you.

National_Debtline

Hello existential


Broadly speaking, most kinds of creditors will have six years to start court action against you for the types of debt you referred to above. There can be all sorts of ifs, buts and maybes involved so I'd do as StokieBecks recommends and contact one of the free advice charities for a more detailed assessment of your situation and options - don't just rely on the results of your poll!


Dennis
@natdebtline