Creditors chasing you

[goldheart]

I read somewhere on this subject that after 6 years, creditors have no chance of getting any money back off you that you may owe. For instance, my boyfriend has an outstanding amount on a small loan he had, about six years ago, approx. �1500, he moved but now they have caught up with him now and sent him a letter/demand. 

I know that in black and white he owes the money but the simple thing is that he or me cannot pay this. We have other debts and he has just lost his job.

Also, if this is the case then surely he should just ignore their letter?
Anyway my question is if we just ignored our creditors  could we just avoid all debts for 6 years and then they are wiped clean?  This sounds too good to be true!

[Oneeyedvic]

(Un)fortunately, this is not true!

A debt never dies unless you are made bankrupt (and even then student debts will till be there). Even if you die, your estate still owes the money.

The only exception is if a company does not contact you at your last known address reminding you of your commitment for 6 years. IE if you live in the same palce and in 1990 took out a loan and defaulted, but the company never wrote to you, in 1997, they could not then claim on that debt.

What usually happens is that the finance company will write to you at your last known address (funnily enough most people who default don't tell finance companies when they move!). They will then do a search and trace, and when that turns you up at your current address, people say "but I didn't know".

 

Sorry, but tough - you have to pay this!

[AlanS107]

Go to www.fool.co.uk and click on to discussion boards | managing your finances | dealing with debt |. You will find many experts there that can answer your questions and a large archive of previous answers.

[PlainJane]

The Limitation Act says that you cannot be sued for a debt more that 6 years after you ought to have repaid it, unless it was incurred under a deed (eg a mortgage)in which case the limitation period is 12 years, or you have acknowledged the debt within the last six years. If you have already been sued then a judgement can be enforced for ever.

[dirtyharriet]

Did you/he acknowledge you were the same person that owed the debt?

If not just say that "you have the wrong person" or that you have just moved in and don't know the forwarding address of the person they are after. Not very responsible, I know but I have had debts in the past and this is what I did. I'm not proud of it and haven't taken on any loans since as I learned my lesson. However if you want to do the right thing, then have a look at this link

http://www.nationaldebtline.co.uk/

[erimus1]

Don'g agree with Oneeyedvic i'm afraid - although he is correct about a debt never going away. What can practically be done about the debt, under the Limitation Act, disappears after six years,. Inother words, you cannot be sued for a debt that has been delinquent for this length of time. Some of these people are telling you to lie about being someone else - don't this then becomes fraud, and thus a criminal offence. All you have to d is simply diregard the letters - if youy acknowledge the debt at any point, the limitation begins again from that point.

Good luck.