what are the rules in the uk regarding a defaulted loan where the item the loan was for was reposessed?

Question

is there statute of limitations regarding a debt? i.e. 6 years

Answer 1

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 KEEP 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:

Answer 2

My understanding is that the loan is secured against the item.

If the item is repossessed & sold, but insufficient money is raised to pay offf the loan, then they may have an 'unsecured' debt claim against you.

You should have been informed (in writing) if the debt has been written off or not.