statute barred

pru

Hi

I entered into a partnership some 10 years ago with 3 people who I worked with and owned a company. The company had its bank account within lloyds and so did the partnership. I worked at the company 17 years and left in 1999. I sent a letter immediately to the bank asking to be removed as signatory on the company and the partnership (given by hand). At the time the partnership took out a loan. I have received a demand from credit agency chasing me for the full amount of the loan.

Can I state 'statued barred'?
I mentioned this on the phone at the time and they said they would contact their client and get back to me.
I left in 2000 and the original company went bust in 2001.
They have made no attempt to contact me since 1999. Ironically I have been at the same bank and branch for 15 years and my name is somewhat unique.

fermi

Irrespective of any other issues, if you have not acknowledged the debt in writing by you or by making a payment for a period of 6 years then the debt is "Statute Barred".

Have a read through the National Debtline factsheet below:

Factsheet | Liability for Debts and the Limitation Act

There is even a letter included at the end to send if you conclude that the debts are "Statute Barred".

pru

I just hope that the other partners havnt made a payment.
doubt it ....like I said I left...the company went bust which was
linked to the payments of this loan...so I can only live in hope.

They are ringing tonight I will state statued barred and confirm in writing (by registered post)..hope this is the end of it....any advice on what I should say specifically in the call...I doubt they will admit its statute barred..

fermi wrote: »

Irrespective of any other issues, if you have not acknowledged the debt in writing by you or by making a payment for a period of 6 years then the debt is "Statute Barred".

Have a read through the National Debtline factsheet below:

Factsheet | Liability for Debts and the Limitation Act

There is even a letter included at the end to send if you conclude that the debts are "Statute Barred".

fermi

Well, if the original partnership was dissolved/ended in 2001, then you should be able to assume that no payments were made after that date.

That means it must be coming up on the 6 years fairly soon (If it hasn't already done so). That may not be a coincidence. Lots of these debts seem to pop up about 5 1/2 years after the last acknowledgement.:rolleyes:

It's not up to the company chasing to say whether it's "statute barred" or not. If you write to them informing them it is, then if they want to take any other action they would then have to prove to the courts that it wasn't. In the absence of any proof to the contrary the "statute barred" letter would be a full defence if they took legal action.

Either National Debtline - Tel: 0808 808 4000 or Business Debt Line - Tel: 0800 197 6026 should be able to advise you more.

They are free advice services run by the "Money Advice Trust", so are impartial and normally very helpful in situations like this.

rog2

Excellent advice, as ever, by fermi. :T

If, as you state, the company went 'bust' in 2001 then nobody has any right to pursue you for any debt that the company had at the time of its bankruptcy. If you have the details of the bankruptcy, simply tell the dca and he should make any further contact, regarding the 'alleged debt', to the official receiver.

fermi

rog2 wrote: »

If, as you state, the company went 'bust' in 2001 then nobody has any right to pursue you for any debt that the company had at the time of its bankruptcy. If you have the details of the bankruptcy, simply tell the dca and he should make any further contact, regarding the 'alleged debt', to the official receiver.

I was assuming that because it was a "partnership" that there would be some personal liability for the debts.

But business debts are not something that I'm totally up to speed on.

EDIT: This makes some interesting reading when I have time: http://www.insolvency.gov.uk/guidanceleaflets/dealingwithdebt/howtowindupapartnership.htm

pru

The partnership was basically 4 (good friends) for a better word.
It had no trading, no activity only that the loan was taken. Subsequently transferred into the company.

They were so occupied with the running of the 'company' no correct formalities or dissolvement was ever taken up on the partnership (only my letter to the bank).

The company made direct payments to the partnership account to pay the loan. As the Company went bust I cannot see that payments would have been made. I do not know if the company listed the partnership as an outstanding creditor. I was interviewed by the administrator some 2 years later because I was a key member of the company (with a brain...but I wonder sometimes). Anyway the company is a dead issue. The partnership obviously still had this loan which they are coming after the 4 individuals for the debt (some time after).


Its very confusing never simple

I am new member on this and still trying to find my feet...but I would like to thank you in advance to all concerned...

tyllwyd

So are you saying that there was a joint loan taken out in the names of you and your three colleagues? Have you got any paperwork from the original loan? Can you contact the others to see if they can give you any further information?

pru

Yes it was a joint loan.
No I cant contact the others as when I left I had put money into the company also...they needed more...I said NO and then it took me 18 months of a legal case to attempt to recover my money...it was an extremely stressful part of my life I dont want to relive...in the end they finally admitted they owed me £50k (which I thought was remarkably easy..after 18 months and appointing my own accountants to audit them to prove it) little did I know that they were planning administration. I lost everything..it cost me my home, my marriage (finally) I lost my job after trying to get on my feet. I am in £120k of debt due to lending friends of 17 years money...so anyone reading this dont do it! and my ex husband also left me with additional debt...two children, no maintenance and a house to pay for...I had a repossession order on the house as I did not have enough food to put on the table...sorry to waffle...(in a debt management programme and have been for the last 7 years...best thing I ever did) I am on my feet again and I will pay this debt off...be it along time...these people ruined my life..so no lets just say that I cant contact them...I suspect they have received the same letter for the full value of £15k...

All I can say is I was naive...
I cant relive this again....
Sorry if I waffled...I scare easy....

rog2

pru wrote: »

Yes it was a joint loan.
All I can say is I was naive...
I cant relive this again....
Sorry if I waffled...I scare easy....

I am sorry to hear of this, pru, and you are in the right place for some advice.
Were you actually a signatory or guarantor to the loan?
Was your 'letter of disassociation' accepted by the Bank at the time?
I agree that it is very confusing, but in the case of joint loans the creditor will pursue other signatories for the full amount, even if one party declares bankruptcy. However, if the bank accepted your 'disassociation' then, as far as I see it, you should have no responsibility towards this 'debt'.
Equally, yes, in my opinion, the Limitation Act should cover you, providing that no payments/written acknowledgement has been made for six years.
Where it gets 'woolly' is if any of the 'ex-partners' had been making payments towards the 'debt' in the last six years - but it would be entirely up to the creditor/dca to prove this.
I honestly think that a phone call to National Debtline - 0808 808 4000 - would help to clarify your situation. It is a freefone number and their advice is free, proffessional and confidential.

pru

I was a signatory at the time. When I left the company the first thing I did was send a letter to the bank removing myself from the company and to the partnership...this was given in by hand (just incase they deny which I am expecting) I never received a reply. I suspect the bank manager at the time was concentrating on the company rather than a small loan.

I doubt if I was a guarantor...but I honestly dont know as this was so long ago..none of the 3 are bankrupt...(although I attempted that legal line in attempting to recover my money) what I didnt say was that when they went into administration they promptly started another company up...thats why they were so amicable towards the end of my legal fight because they knew!...The company saga is behind me now I've learnt to have closure on it.

I will be getting a call from the credit agency tonight and I will state 'statue barred' confirm in writing and will have to wait and see where it goes. I doubt the others have made a 'voluntary' payment in the meantime as the original company was making the payments. I will not acknowledge the debt and will be very careful what I say.

I've learnt alot...most people would have gone bankrupt...I am grateful to the fact I found a debt management programme who do take all of the worry and you get to sleep!..I will pay this off ...just need time!

So if everyone is agreement I will go down the statute barred line and let you all know tomorrow...or tonight if I am on line the enternet doesnt bomb out!