is there a time period that a debt owed is null and void after so many years. ?

Question

If so, how long and does it cover all types of debt, eg, house repo with outstanding balance,banks, etc

Answer 1

Some companies write debt off to claim off there insurance however they have to prove they have tried to collect outstanding monies.

Answer 2

Under the Limitation Act 1980 if there has been no payment or contact then the debt becomes null and void. Most debts are covered by the Act apart from money owed in Tax and the interest on the Tax.

Hope that helps

Answer 3

Limitation Act 1980 s20. A civil debt becomes unenforceable after a period of 6 years from last acknowledgement of the debt by the debtor. Assume this is a UK based question. Google Limitation Act for verification.

Answer 4

YES. ALMOST EVERY ANSWER SO FAR IS WRONG.

http://www.bankrate.com/brm/news/cc/20040116b1.asp

Click the link. Read the info from bankrate. Depending on your state and what type of debt, YES it can become legally unenforcable to collect.

The clock starts on the date of last activity. So the date you either used the credit card last or the last payment you made on the account.

Now, they can and likely will still report the debt on your report for the full 7 years. After that, you have the right to have it removed. Possibly even sooner. Read the fair credit reporting act link on the webpage the first link sends you to.

Answer 5

Personal debts become "unenforceable" after 7 years of non-payment. So, if you made your last payment seven years ago, the creditor will not have legal recourse to collect the debt. The does not mean that the item will come off your credit. It does, however, come off your credit after 10 years of non-payment. Legally, you will still remain obligated to the debt meaning it doesn't get "erased," but it becomes unenforceable (they cannot collect on the debt), then eventually no "conventional" trace will exist after 10 years.

Answer 6

depends. if keeps firm chasing debt can issue summons anytime. they do not keep chasing then up to 10 yrs. Banks and the like seem to make up their own rules but they can put a charge on the property, so when you come to sell it, however long it is, the debt is deducted from the proceeds of the sale. This can be done by anyone who has a judgement in favour of the debt

Answer 7

Debts don't go away - they're always your moral responsibility, even if you can avoid them legally.

The best course is to try and pay your debts - if you can't afford to pay them, you should be able to negotiate a deal with the lender to eliminate interest, accept long term payouts, or defer payments for a period of time.

Promptly and strongly negotiating with the lender can even protect your credit rating as part of your negotiations.

A lender would rather regain their principal at all costs than spend any time or effort downgrading you or selling the debt for a fraction of its value to a collection agency.

Answer 8

I hope not...........if someone owes someone else & haven't repaid it how can it be null & void.All the adverts around nowadays from so called debt management firms make my blood boil when they talk about getting payments reduced and up to 75% of the debt written off etc ........at the end of the day someone loses out , so why should it be the lender who has done nothing wrong ( apart from allowing themselves to suckered in by fraudsters, who probably never intended to repay when they borrowed in the first place!

Answer 9

As a general rule debts are statute barred after six years. However there are exceptions to this rule so be careful

Answer 10

No never. It may come off your credit after 7 years, but the debt is still owed.