Status barred debt

redgem12

Hi, 
Is my debit status barred?
I had a mortgage & secured debit which i split with my ex the house was repossessed and sold i thinkin 2008. The last payment was made to them both was end of 2007 & I believe the house was sold. i have no had any notification what so ever from the lenders. No default are showing on my credit file. HSBC was the main lender. I have now been accepted for a mortgage by them for a new property. My question is can they use or add the old debt to my new house. I also have been sent a £50 compensation for the old account. Which i have not banked as its in my maiden name - if i cash it in will it reopen the status barred debit?

sourcrates

I think your referring to "statute barred".


When the house was re-possessed, the secured loan became unsecured, now it would depend if the debt was then classed as a mortgage shortfall, or just an unsecured loan, if the former, the limitation period is 12 years, if the latter, its 6 years.

so if the last payment was made in 2007, then regardless, it would indeed now be statute barred, yes, as long as no legal action was taken to enforce the debt.

However, although once a debt becomes SB, it is normally no longer chased, all statute barred means is that the creditor can no longer take legal action to recover the debt, they can`t add it to any new borrowing you may have with them, and once a debt becomes SB, it stays that way forever, it can never be unbarred.

If they haven`t chased it in 14 years, I doubt they will now.

fatbelly

Let's just be clear. Under English law (not Scottish, that's different) the debt still exists, it just can't be enforced through the courts.

I agree that they are unlikely to try anything at this stage but I would still be wary of using them, particularly banking with them.

On the £50 cheque, if your own  bank accepts cheques in your old name I doubt that would be an issue. If you weren't expecting compensation though you might just want to leave it