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Debts Wiped Off
Maverick83
Posts: 5 Forumite
Could someone tell me how long it takes for debts to be wiped off. I've been told that debts have to be wiped after 7 years if creditors have not been able to contact the debter, & have not recieved any payments for that length of time. Could someone please tell me if this is true & how it works.
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What I think you are referring to is the Limitations act and the debts being statute barred. Debts are only statute barred after 6 years from the original default date as long as the debt has not had any payments made to it or been acknowledged in writing in that time.Total 'Failed Business' Debt £29,043
Que sera, sera.
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Hi Maverick,
I think you are referring to Statute Barred – this would be if no contact has been made over 6 years. The Debt would not be wiped off it would just be that the creditor would not be able to take legal action so the money would still be outstanding.I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.
CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
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Could the debt ever be wiped without paying it?0
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Hello MaverickMaverick83 wrote: »Could someone tell me how long it takes for debts to be wiped off. I've been told that debts have to be wiped after 7 years if creditors have not been able to contact the debter, & have not recieved any payments for that length of time. Could someone please tell me if this is true & how it works.
I guess you've received some kind of correspondence regarding a debt.
If you post what it is, the good folks here will guide you through the process.
Whilst the information above is correct regarding "Statue Barred" this DOES NOT APPLY IF A CCJ WAS OBTAINED ON THE DEBT.
Again, post your issue, and we will giude you though.
Priority number 1: Do Not Panic.Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.
All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional0 -
No, the debt will remain forever, but there are various actions a creditor has to follow to enforce the debt.Maverick83 wrote: »Could the debt ever be wiped without paying it?Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.
All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional0 -
No. It will never be 'wiped'. The only way of wiping it off is by paying it. After 6 years any debt will fall off your credit record anywayMaverick83 wrote: »Could the debt ever be wiped without paying it?Total 'Failed Business' Debt £29,043
Que sera, sera.
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Maverick83 wrote: »Could the debt ever be wiped without paying it?
It depends on your situation. Is it that you can't pay the debts as you dont have enough money? If this was the case and a reduced payment plan was not applicable then Bankruptcy would wipe of the debts. Or if it's that you don't want to pay the debts, then the debts would go down the collection process resulting in CCJ's and if you chose not to pay these then a court would instruct a bailiff. There is a big difference between cant pay and wont pay. As the the majority of the time if you can't pay arrangments can be put in place.I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.
CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
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You say 'After 6 years any debt will fall off your credit record anyway' does this mean that after 6 years I would be able to buy a house or get credit on other levels. Or would I then be black listed for example. When will I be able to live 'normal again' to put it one way!0
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Yes, it will not show on your credit report, but the debt will still exist.Maverick83 wrote: »You say 'After 6 years any debt will fall off your credit record anyway' does this mean that after 6 years I would be able to buy a house or get credit on other levels.
There are numerous threads on this board from members who've been contacted for outstanding debts 10 / 15 years old, myself included, I've recently been contacted re a debt from 1997.Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.
All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional0 -
maverick
I think a few things are getting confused.
Under the Limitations Act, if there has been no payment or acknowledgement of the debt for 6 years, then it becomes unenforceable. The debt still exists but if you tellt he creditor where to go, they cannto force you to pay.
Start with reading the OFT Guidelines for debt collection from the link below, I think statute bared debts are on page 13.
Office of Fair Trading, Contact page: http://www.oft.gov.uk/advice_and_res...ase/legal/cca/
The other thing is that late payments, defaults and the like stay on you record for 6 years, after which they drop off. The debt still exists but it no longer affects your credit record.
Does that help?If you've have not made a mistake, you've made nothing0
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