can a debt be written off?

neo866

Not sure if this is the right forum but here goes:
My problem is i bought a house about 15 years ago with my father, i was 19 at the time.
I moved out and lived with my girlfriend where i still live now.
My Dad took over the repayments and after a while stopped working and registered himself disabled.
The interest on the mortgage was payed until they took the house back some 6 years ago.

My Dad died in 2004 and the Halifax started pursuing me for the £14.500 owed.

I have been on Incapacity benefit since 2003 and have been means tested buy 2 debt collection agency's but now They have a solicitors after me.

I won't go into detail but i strongly dispute the amount there are after but i realize i am not in a financial position to argue my point.

I am yet to make 1 payment towards this debt and was wondering if i should just arrange to pay something back or should i not pay?
I'm not sure where i heard it but i was told if you don't pay for an amount of time the debt has to be written off.
Is this true and if so how long should i hold out.

The halifax have had roughly twice the amount we borrowed back (with the selling of the house) so i don't think it's right there should pursue me for more.

Any help would be great.

jacnorm

If I was in your position I would give someone like CCCS a call they will give you free advice and at least you may then know where you stand regarding the outstanding debt.

lauren_1

But you still own this house?
Can you not just sell it and pay the mortgage back with the profits, after 15 years it must be pretty low by now, surely.

Or has the house already been reprosessed?

Migz

There is a bit of a strage rule that if you have made no contact with a creditor for, I think it is 7 or 10 years they can not pursue you for the debt. I don't know the in and out of it all, but honesty do you want to worry everytime someone knocks at the door, trust me you don't, I've been there, it is not a nice way to live at all.
As jac/norm has said call the cccs or national debt line or go see someone at your local citizens advice, they will be able to advise you on the best course of action.
Good Luck
Migz

rog2

Migz wrote: »

There is a bit of a strage rule that if you have made no contact with a creditor for, I think it is 7 or 10 years they can not pursue you for the debt. I don't know the in and out of it all, but honesty do you want to worry everytime someone knocks at the door, trust me you don't, I've been there, it is not a nice way to live at all.
As jac/norm has said call the cccs or national debt line or go see someone at your local citizens advice, they will be able to advise you on the best course of action.
Good Luck
Migz

I think you are talking about the Limitation Act, Migz, which clearly states that, for consumer debt, provided that a debtor has made no payments towards, nor acknowledged, in writing, a debt for a period of six years, then that debt becomes 'statute barred' and, providing the debtor tells the original creditor, or a debt collection agency, that he/she will not pay the debt because it is statute barred, then the creditor, or his agents, can no longer pursue that debt, through the courts.
The law is, unfortunately, not quite as clear when it comes to 'property related debt' where the 'limitation period' is, legally, 12 years. However, the Council of Mortgage Lenders have, voluntarily, agreed to accept the same 'limitation period' as for normal debt, i.e. six years, but with one condition - in the case of normal consumer debt, written confirmation of the debt has to be initiated by the debtor, whereas with property related debt, contact from the creditor constitutes confirmation of the debt.
As the OP has been in contact with the Halifax, it is unlikely that the Limitation Act would apply in this case.
However, there are other avenues that you may pursue, for example whether there was any mortgage protection insurance at the time the house was repossessed.
You would be best advised, before agreeing to any payments to Halifax, to talk with National Debtline or one of the other debt counselling charities, such as CAB or CCCS.
For further information regarding 'mortgage shortfall' debt, have a look at:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

Good Luck

Migz

Thanks rog2, I couldn't remember for the life of me what it was called, fried my brain this week with one thing and another.
Migz