Old debt - advice

Vikki2479

My husband has received a letter from a solicitor- Nolan’s- requesting payment of an old loan that had defaulted 5 years ago. We don’t recall getting any letters before this - this letter is quite forceful stating if we don’t pay (£12,000) within 7 days they will issue a decree which will last 20years! 

The previous week my husband had a wages arrestment placed on his wages as I cancelled a payment plan in error to repay the  arrears of council tax - they refused to stop it even though we hadn’t missed a payment and I had contacted them within 14 days of realising. 

We were previously in a poor financial situation causing numerous defaults on loans/ credit cards and council tax. We have worked hard to recover from this - no missed payments for 3 years and just starting to rebuild our credit rating. It now feels like we have taken a massive step backwards and our money mistakes will never disappear. I naively thought that as there had been no contact the debt would disappear from our credit report. 

Any advice, can you negotiate with a solicitor regarding the amount or do you just have to accept and make a payment plan? Will this negatively affect his credit score? 

We had hoped to start saving for a mortgage, Will having payment plans be seen as a negative if we were to apply for a mortgage? 

TIA

MorningcoffeeIV

Are you in Scotland or England and when exactly did you default?

If not statute barred, then they have every right to chase you for what you owe.

Your credit score is fictional so it doesn't matter if it goes up or down, but a CCJ or decree will make life much harder than agreeing a repayment plan, if the debt is enforceable.

Vikki2479

We are in Scotland. 

The default was sept 2018. As far as I am aware no payments have been made towards this. I don’t know much about stature barred. 

JCS1

Read up on it, debts are statue barred in Scotland after 5 years. Make sure the loan is included.  

sourcrates

The debt became prescribed in September this year.

Search for a template letter to that effect, send it to this "solicitor" as soon as you can.

Debts become "prescribed" in Scotland after 5 years, the law is much stricter and more forthright up there, after 5 years since default, with no payment or written acknowledgement the debt ceases to exist under Scottish law.

Do not engage with them about anything, just send the letter.

fatbelly

https://www.nationaldebtline.org/fact-sheet-library/statute-barred-debts-s

https://www.nationaldebtline.org/sample-letters/time-has-run-out-recover-debt-s/