A friend has owed a bank some money for 6 years, will the debt ever be cancelled?

Answer 1

What type of debt? Is this a mortgage? Car loan? Credit Card?

For starters, ignore every one of the answers you just read! Not one of these rocket scientists have a clue.......

Every state has what's called a "statute of limitations" on debts. If it's based on a written contract, it usually runs from 6-10 years (some are longer). If it's on an unsecured debt, it runs around 6 years.

What this means is if you have not make a payment, or you defaulted on a written contract, then the creditor has until the end of the SOL time period to file a lawsuit. If they don't, they lose the legal right to collect.

it depends on what type of debt this is....so give us some more info and I can answer this better.

These folks will not mind if you don't pay! I don't hear them complaining about the billions in record profits the banks have been making over the past few years. Right?

Answer 2

1. This question is visible in both the US and the UK. Laws are not the same in both countries. You have already received answers from both.

My answer is based on US law. The debt will not be reported on your credit report after 7 years. Each state has a statute of limitations that limits how long the bank can sue for what you owe. If they sue and win, there is a MUCH longer amount of time to actually collect. Even if they don't sue before the statue of limitations runs, that does NOT mean they can't try to collect. In any case, if you ever wish to do business with that bank again, they can and will refuse your business until you pay what you owe. The best way to cancel a debt is to PAY the debt.

Answer 3

Well, if it has been reported on their credit report, it will disappear after 7 years. However, even after that, the bank will have a permanent record of their debt reported to CheckCare or some other agency that keeps track of customers who fail to pay back the money they owe banks. This record lasts a long time (10 to 15 years ) and can only be removed after the debt is paid.

Answer 4

If the bank havent contacted him in that six years, then the debt becomes unenforceable (under the Limitations Act). That means they cant take him to court to make him pay. Without court action they have no means of enforcement. So the debt will still exist, but he cannot be made to pay it. It would be the right thing to do but the bank would not be able to make him do it. After six years the default would not be on his credit history. It will never be 'cancelled' but it wont necessarily come back and bite him in the bum in future years.

Answer 5

The debt and the accrued interest will never be cancelled. It might be turned over to a credit collection agency and / or written off by the bank as a bad debt. Either way it will show up as a negative on his credit report.

Answer 6

providing no contact re the debt as been made for 6 years the debt now no longer exists your friend doe not owe any money if this is the case, money owed over six years without contact is impossible in law to recover therefore your friend is not obliged to pay. further to this the credit reference agencys cannot record a debt for more than six years so your friend is in the clear take no notice of the numpties on here that say different

Answer 7

What kind of money, a loan, bank fees, bounced checks? Each has a different answer.

Answer 8

Your friend needs to pay it back.
Loans and debts are not opportunities for free money.

Answer 9

I'm really surprised (or maybe I'm the stupid one) how people can actually think their debt magically disappears if they run long enough.

If that was true, wouldn't it have been 'too much' to bomb all those credit card buildings in Delaware (Fight Club)?

Answer 10

They may eventually write it off to get it off their books but will always be in the bad debts section and go against any credit report. Pay up!