Is it legal for a debt to be 'chased' after 6 years?

Question

Two of my friends say that there is a six year limit for how long a debt can be recovered. After this, they tell me, it is illegal for anyone to chase after it.

I'm not so sure, does anyone know the answer?

Answer 1

Generally that's sort of true, but there are complications.

In England, Wales and N. Ireland, there is a time limit, usually six years,on starting legal action to claim money owed. The time limit runs from either the date when the money was first owed, or from the last time the debt was acknowledged by the client or from the last time a payment was made.

However there are some exceptions to the rule,
overpayment of social security benefits can be recovered through the courts within six years of the date the decision maker decided the overpayment was recoverable. But if more than six years have elapsed, it may still be possible to recover the overpayment from payment of another benefit.
And there are no time limits which stop HM Revenue and Customs from collecting tax once the initial assessment has been made.

Hope this answers the question for you.

Answer 2

Yes It Is Legal,
The Debt Recovery Can Chase You As Long As They Want To,
It's Like Catch 22 If They Have Written To you And You Have Replied, And You Have Made Any Payments For The Debt, They Start From That Date
They Will Harass You, Threaten You,
You Name It They Will Try.
I Had It Done To Me By Two Companies,
It Was My Ex's Loans But I Was The Second Named Person,
Even Though When The Loans Were Taken Out I Was Not Working And Very Pregnant With Our Third Child ,
Some Debt Collecting Agencies Are Ruthless Bullies,
Good Luck

Answer 3

Yes and no. Every state has a statute of limitation on the legal ability to enforce a debt buy suit. Many states are 7 years, while some states are as little as 3 years. Creditors can bring suit anytime within that period. The key to any defense is proving you did not acknowledge the debt since the clock started. One $10 payment or a promise to pay can start the clock over. Usually, there is such documentation of some type: a returned phone call, certified mail, one payment sent, etc. to justify collection recovery. Since once a debt is always a debt, a creditor can pursue collection activity forever and simply become annoying. Therefore, it is usually a good idea to settle your debt if possible. Especially important for a healthy credit score. For example, creditor rates debt as a charge off on the date of statute of limitations. That then stays on bureau reports for seven more years. Charge-off's are weighted close to bankruptcy in FICO scoring, etc.

Answer 4

They can chase you up to six years from the date you defaulted on the debt. In other words, if you took out a five year loan in 2005 and stopped paying it in 2006, they have until 2012 to sue you for the debt.

This last point is important, all the "chasing" in the world means nothing unless they actually go to Court and issue a Summons against you. This absolutely must be done within six years from the date (in Consumer Credit cases) you were served with a Default Notice or the date you should reasonably be expected to have been served with one.

A creditor regulated under the Consumer Credit Act cannot get any cash from you without a Summons and cannot raise a Summons unless they have already sent you a Default Notice. They also cannot wait just short of six years and then send you a Default Notice to give themselves another six years to sue you. They have to give you a Default Notice very soon after you stop paying - usually twenty-eight days.

Answer 5

Its a fable that money owed are wiped after 6 years. What honestly happens is that the debt drops off your credit document after 6 years, besides the incontrovertible fact that the debt stands continuously, or till its paid. besides the incontrovertible fact that, if there is actual no touch between the lender and the debtor for a whole era of 6 years then the debt will become "Statuate Barred". What this implies is that the lender can now no longer take you to courtroom to get better the debt. you nevertheless owe the money to the lender, and that they are in a position to nevertheless attempt and assemble it from you. by way of fact they are in a position to't take you to courtroom to collect the money besides the incontrovertible fact that, in case you refuse to pay then there is efficiently no longer something that they are in a position to do approximately it. frequently debt sequence companies will attempt bullying strategies to get you pay, yet they understand the regulations and understand they are in a position to't take you to courtroom, so in case you stand company and refuse to pay, they'll frequently supply up interior the tip.

Answer 6

I think your friends are a little confused...In the UK the collections agencies cannot pursue a debt if they have heard nothing from the debtor for 6years or more.

If the debtor is in contact with the collections agency they can pursue it.

If the debtor does not have contact with the collections agency for 6 years or more (or the debt was repaid 6 years or more ago) the debt is recorded on your credit file as complete & the collections agency are unable to pursue you for it.

If you're having problems being hassled by the collection agency contact the CAB as its harrassment & harrassment IS illegal in the UK.

Answer 7

Debts are 6 years in effect for 6 years from the last demand....yes they can chase them after 6 years...unless they have not demanded the money in a longer period than that but check with a lawyer...stop being a deadbeat and pay your bills

Answer 8

The statute of limitations for SUING over a debt varies by location. In many locations, the statute depends on the type of debt. In nearly ALL locations, the statute ONLY limits the time a creditor can SUE to collect the debt. There is rarely a time limit for actually collecting.

Answer 9

There is a time limit, but it varies from state to state, so you should check with an attorney, man. Debts good forever if you made a payment or a written promise within the time frame of the statute of limitations, or if there is a court judgement against you.

Answer 10

In the State of California the law is "4 years to collect a debt" for businesses. And 2 years for a personal debt (although I am not sure about the personal deadline...)