2007-03-04 06:18:31 · 8 answers · asked by vicki m 1 in Business & Finance ➔ Personal Finance
If you have had no contact with the creitor for 6 years then the debt is written off.
2007-03-04 06:23:46 · answer #1 · answered by barneysmommy 6 · 0⤊ 0⤋
Hi Vicki. The short answer is no... or rather it doesn't depend on a period of time. Most people go through bad patches but eventually overcome their debt and the debt problem goes away (hard work is often involved). For those whose debt spirals ever larger, they seek help.
In this economic climate, lots of people are racking up a LOT of debt. There are 100s of businesses offering debt advice. Start reading your spam emails and you will realise there are many unsolicited emails offering to help one's debt.
Some advise to cut up all your credit cards, and bundle all debts into one loan, then spread payback payments over a long enough time so that the repayments that have to be made are affordable to the person in debt.
For those who are just "in too deep" they can find a business that offers IVAs. IVA stands for "Individual Voluntary Arrangement" offered by businesses who specialise in debt management (see http://www.google.co.uk/search?num=20&hl=en&rls=SUNA,SUNA:2006-31,SUNA:en&defl=en&q=define:Debt+Management&sa=X&oi=glossary_definition&ct=title). If things are really bad, people can declare themselves bankrupt.
It is up to the individual to speak to financial experts to make this official. When this is done, the bank "writes off" the debt as a "bad debt". Clearly banks don't like doing this because it means they are losing money, and they would do everything and anything they could to avoid this.
So getting the bank or one's creditors (ie anyone they owe money to) to agree to bankruptcy is not a comfortable experience. One learns pretty quickly what its like to have no credit and a very small amount of money to live on.
Have a look at this website
http://www.businesslink.gov.uk/bdotg/action/detail?r.l1=1073858808&r.l3=1074019105&r.t=RESOURCES&type=RESOURCES&itemId=1073792366&r.i=1073792362&r.l2=1073859230&r.s=m
It describes the process of personal bankruptcy more thoroughly than I have here.
2007-03-04 06:56:29 · answer #2 · answered by ediblefrogribbit 1 · 0⤊ 0⤋
Some debts can be written off after 6 years but this is rare - if you have acknowledged the debt or spoken to someone about it or received communbication regarding it that you have them responded to then it will not be written off - it will show on your credt file until it is marked as satisfied but i beleive you can have it removed it the debt is cancelled.
have a look at www.moneysavingexpert.com for info
2007-03-05 00:12:18 · answer #3 · answered by bevflower 3 · 0⤊ 0⤋
A credit event of the standard nature, ie like a 30 day late, will report for 7 years. A bankruptcy or foreclosure will report for 7 years, up to 10 years at the creditors option. If you have a charge off, it'll show for 7 years from the date of the charge off. If it was included in a bankruptcy, they have to remove that charge off and replace it with 'included in bankruptcy proceedings'.
2007-03-04 07:38:22 · answer #4 · answered by tiny_dog10 2 · 0⤊ 0⤋
It could take up to 7 years, but I personally have had a company write-off a balance with only 2 notices in less than 6 months.
2007-03-04 06:27:16 · answer #5 · answered by dcstang97 1 · 0⤊ 0⤋
Yes after a time but go get some help good luck
2007-03-08 05:33:05 · answer #6 · answered by pattibcacl 6 · 0⤊ 0⤋
No.
2007-03-04 07:26:32 · answer #7 · answered by Anonymous · 0⤊ 1⤋
IF YOU ARE BANKRUPT
2007-03-04 06:25:31 · answer #8 · answered by balae 2 · 0⤊ 0⤋