Am i free from debt after 6 years if i had no contact with creditors?

Answer 1

Facts below,England & Wales ONLY.
I work for Experian Credit Reporting

The Limitations Act 1980 outlines the time limit within which a creditor can chase a debtor for outstanding debts. The Limitations Act 1980 only applies when no contact has been made between the creditor and debtor within the given time limit and only applies to residents of England and Wales.

Creditors are given a fixed period of time to chase their debtors, which is outlined in the Limitations Act 1980. The time scale mainly depends on the type of debt and can be extended at the courts discretion. The time limit begins when you last admitted owing the money or made a payment.

Should the creditor fail to maintain contact with the debtor, for a period of 6 years or more, it is possible to claim that the outstanding debt is "Statute Barred" under the conditions of the Limitations Act 1980.

The Limitations Act 1980 also has additional effects, depending on the type of debt in question:

Unsecured debt
You may have assumed that your creditor has "written-off" a debt if you have not heard from them for a long period. In many cases, it could be down to your failure to inform them of a change of address, but the debt will still exist and creditors are entitled to chase the debt indefinitely (even after the debt has become Statute Barred), however they can only use the legal system to recover the monies for up to 6 years after the last payment was made to the account.

Remember, creditors are still able to pursue an unsecured debt if:

They have previously obtained a judgement against you (a CCJ);
You have made a payment to the account within the last 6 years (this includes anyone else named on the credit agreement)
You have established any contact with the creditor (this can be a phone call or letter to request a balance or change your details), except to deny that the debt exists.
If a creditor continues to contact you after accepting that a debt is Statute Barred and you have stated that you no longer intend to pay the debt, you may be able to claim harassment contrary to section 40 (1) of the Administration of Justice Act 1970.

County Court Judgement
If the creditor has previously taken you to court and you have received a County Court Judgement, you will be unable to use the Limitations Act 1980 to dispute the debt. If the judgement is over 6 years old the creditor may need the permission of the Court to enforce the debt.

Council Tax
If the Council tax was due more than 6 years ago the council can go to Court and ask for a Liability Order. The liability order allows the council to deduct the council tax debt from your wages or benefits. The council will be granted the liability order unless you defend the debt.

Mortgage shortfalls
Your mortgage lender may begin chasing you for a mortgage shortfall, which was the result of repossession. The time limit is slightly different for the mortgage lenders as they have 12 years before the debt becomes Statue Barred.

Income Tax and VAT
There is no time limit for these debts to be chased. You can always be pursued for debts owing to HM Revenue and Customs.

Benefit Overpayments
The Department of Work & Pensions (DWP) can chase debts after 6 years without going to court. They reclaim the overpayments by deducting them from current benefits.

What to do if a creditor contacts you after six years
Don't admit to owing the money

Once you agree to owing the outstanding amount then you are required to pay the debt back. If a payment is made, even after a 6-year gap, the Limitations Act 1980 won't be enforceable and the debt will have to be paid back.

If a creditor, who you haven't had any communication with for 6 years contacts you about the debt you should write to them quoting the Limitations Act 1980.

Answer 2

The Limitations Act 1980 outlines the time limit within which a creditor can chase a debtor for outstanding debts. The Limitations Act 1980 only applies when no contact has been made between the creditor and debtor within the given time limit.

Have you moved address without informing your creditors? Are you on the voters roll?

Answer 3

After seven years of inactivity your debt would be cleared.

Answer 4

Depends on what the statute of limitations in you state is. In most it is six years from last payment.

Answer 5

nope, not even if you die.
most will write it off after death but some will want your estate and will get it from ythe solicitor or a relative.
they'll always get you

Answer 6

Nope. They will hunt you down

Answer 7

lol you lucky bastard...tell me how you do it lol