Debts.......how long b4 they're forgotten?

[Nelli]

I acquired some debts (non-secured) when my partner was made redundant. I received excellent advice from Debtline (Plug) and sent them a Statement of Earnings, income, outgoings all that Malarky, making each one a pro rata offer. Some have agreed and I'm now paying, but some I haven't heard from since I sent the offer (therefore haven't paid anything) and three of them haven't written to me since Nov '02. I know that these debts will stay on my Rating for at least 3 years, but would you assume that they've written them off, too expensive for them to pursue?

[andy hughes]

It sounds like a reasonable assumption. Keep copies of all correspondence, and if nothing is heard of by the time the debts are cleard from your credit raitng, it's logical that the company(ies) involved have written them off.

[treaclefight]

when my ex left me (with x grands worth of debt i didnt even know about, he is now in prison for fraud, completely different matter) i took the same details to my bank in order to sort out our joint account, the bank mananger kindly told me that the abbey national could cope without the amount we were talking about and that we should discuss the debt in 5 years when, hopefully, i would be in a position to pay. i still bank with the abbey national and 10 years later the debt hasnt been mentioned. i dont know why and i'm obviously not going to raise the issue, i would wait a bit longer before YOU write those debts off, but they might have written them off... but dont count your chickens just yet. :-) p.s. well done for doing the responsible (and brave) thing in facing up to your financial problems, you deserve to get a break just for doing that, i know how hard it is.

[Nelli]

Thanks Andy and Treacle, it's a scary thing, and anyone else who might access this post 'cos they have debts, call Debtline or CAB and get advice, Debtline saved my bacon, and when the hassling letters and phonecalls stop, your life improves 100%....there's always an answer. :-).Thanks ppl

[darth vader]

Your rating isn't based on your debts to people, it's based on a)payments you've made so far, in relation to your debts to people (especially ones that are kept up to date) b)CCJs (count court judgements) which is why people with a load of items on HP/fincance, who are paying regularly, tend to have a better credit history than those that have never ever purchased something except for with cash - see www.experian.co.uk on how to get a complete credit history of yourself. Debts are "spent" i.e. written off, after 6 years, unless a court has intervened on the period to which the debt remains.

[Nelli]

Thanks Darth, can I ascertain from that then that as I am paying back 'some' of my debts (credit C and Bank Loan) that thats a good thing, but the fact that the others seem to have been 'frozen in time' is bad and that only after 6 years will they be forgotten about? I do tend to buy everything with cash, or Electron! Not too bothered about having an excellent rating, I have a Mortgage and as long as I can re-broke that in 3 years time, I'm quite happy.

[10 All]

Darth is almost correct. The Limitation Act 1980 make sit clear that if you do not pursue a debt by issuing proceedings in court within six years from the date the debt arose, then it becomes Statute Barred. Not written off exactly, it simply means that the creditor cannot sue you for it. With some mortgages the period is 12 years. Trust me I'm a lawyer.