Limitation Act, section 87 and old student loan

robnye

floss2 wrote: »

Can I ask why you haven't made any payments in 6 years? Is it because you haven't earned enough to make payments?

Have a look at this: http://www.payplan.com/debt-library/joint-and-several-liability-the-limitation-act-1980.php

and this http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts_and_the_limitation_act.htm#12

you havent answered the above question?

surely if youve had the money, then you should pay it back

Lillys_mum

I have a student loan from 1995 which I defer every year as I do not earn enough to start paying it.

I would assume that because every year you have to contact them to state your earnings etc then that in itself would be an acknowledgement of the debt as you are applying for a further deferrment.

If this wasn't the case then surely loads of ex students would be firing off statute barred letters after 6 yrs of non payment?

LM

xx

fermi

Lillys_mum wrote: »

I would assume that because every year you have to contact them to state your earnings etc then that in itself would be an acknowledgement of the debt as you are applying for a further deferrment.

If this wasn't the case then surely loads of ex students would be firing off statute barred letters after 6 yrs of non payment?

Yep.

Deferring the repayments every year if you are under the income threshold would certainly count as acknowledgement and stop the debt becoming statute barred.

The OP said that they have made no contact with the SLC for six years though.

Rightly or wrongly they are trying to stop a CCJ going on their record.

The debt would still be legally and morally owed though.

floss2

floss2 wrote: »

Can I ask why you haven't made any payments in 6 years? Is it because you haven't earned enough to make payments?

Sorry to repeat myself, but why have you not made any payments in 6 years??

"They claim the default notice was sent last year, but I didn't receive it" - have you kept them up to date with any changes of address?

When did you make contact with them re the court case? What did you say to them?

silvercar

silvercar wrote: »

Depends whether your loan was before Septemeber 1998, see here:

http://www.bdl.org.uk/images/25_liability_for_debts_and_the_limitation_act.pdf

When I asked this I was trying to establish whether it was the type of student loan that could be statute barred, I wasn't aiming to give a difinitive answer!. If it was issued after Sept 1998, then it can't ever be statute barred.

As regards repayments, the rules are straightforward. You pay back 9% of your earnings over 15,000. So if you earn less you have no repayments to make. Obviously the SLC need to know if you are earning less so that you can defer.

There has been a change in the rules recently, I think at 45 (maybe 40), your loan is written off provided you have made repayments according to the rules upto that point.

Ian-S_3

floss2 wrote: »

Sorry to repeat myself, but why have you not made any payments in 6 years??

Does it really matter why I haven't made any payments? I'm in a pickle, and the events that have landed me in this position are embarassing and I prefer that they remain private. I have only asked for some advice, in the hope that someone with knowledge or experience of these things might be able to help me.