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BiggerK
Junior Member
171 Posts |
 Posted - 18 February 2008 : 12:08:29
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Hi,
Just been served papers notifying of impending bankruptcy proceeding against me.
This relates to debt of just over £4k going back to 1998. I've contacted the company concerned and offered them £1k in full an final settlement. (I really can't afford any more)
The debt collection agency has refused my offer and has said it will resume proceedings.
My questions are:
The document they served (by visiting my house) does not have my correct surname. Is it valid?
Based on experience are they likely to be daft enough not to accept my offer and go through with all of this?
Many thanks |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 19 February 2008 : 23:18:02
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Hi there
did you get a "statutory demand" or was it marketing bumf made to look threatening etc.
also do you have any asset that they might be able to realise
Finally what type of debt was it ( i.e. debt from negative equity after the sale of a house, or credit card / loan debt )?
If it was not connected with a house you may evade the debt under the 6 year rule. They would need to demonstrate that they have tried to contact you and pursued you through the courts / ccj etc. If they cannot demonstrate that they have communicated with you in the last 6 years then the debt is written of.
They may just be chancing their hand.
Either way you need to get it delt with and get the matter put to bed.
hope this helps
Paul Johns
Reviva UK |
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Johnny Debt
Junior Member
United Kingdom
265 Posts |
Posted - 22 February 2008 : 09:22:54
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The way the statute of limitations comes into play at different times regarding different debts, for any land related debts such as mortgage shortfalls the creditor has 12 years from when default has occurred to take the matter formally through the courts.
For unsecured credit cards and loans the period is 6 years from default to take the borrower to court. If the relevant period is reached without court action being taken then they lose the right to do so forever.
If a summons is issued prior to the six year term it’s a standard defence as it’s already a statute barred debt no court action or order can be taken or made.
They can chase a debtor for the money and they would still owe it. The debt would still exist, they would still be liable, they can still be asked to repay it and it can still be re-registered on their credit file time and time again if it remains unpaid, the only change is the person cannot be forced to repay it any longer.
Ultimately if someone wishes to borrow again in the future then an old debt registered on a credit file could present a challenge. If this is so my suggestion would then be to make an offer of a full and final settlement. This is of course only if it does adversely affect your credit rating. |
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Johnny Debt
Junior Member
United Kingdom
265 Posts |
Posted - 22 February 2008 : 09:24:20
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Who is the collection agency?
What was the debt for? |
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BiggerK
Junior Member
171 Posts |
Posted - 21 March 2008 : 20:46:40
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Sorry for the delay in getting back - problems with my PC.
The debt was for a car (automotive financial services) and is now being dealt with by 'Legal & Receiveables'. The debt was just a shade over £4k. I've offered £1k but they have refused.
The stat demand is genuine and is in the name of my local county court.
Any ideas where I should go? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 22 March 2008 : 10:40:12
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Hi BiggerK
I wonder why they have taken almost 10 years to pursue this. Perhaps the origional debt has been sold on and the new "debt owner" has decided to try their luck and see what can be collected.
There is usually a 6 year period where the creditor needs to be able to prove continued correspondance with you or at least efforts to track you down. If they ae not able to demonstrate this then there is a case for defending the action.
however as this is a secured debt for a car purchase then they have 12 years to chase you. You may wish to confirm if the loan was a secured loan against a car or a loan to purchase a car - commonly known as a motorloan.
When was the last time you had any corrspondance from the creditor?
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
Edited by - Reviva UK on 23 March 2008 12:20:05 |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 22 March 2008 : 14:04:53
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Hi BiggerK,
You Must bear in mind that a debt that was in relation to a car which the loan was secured against, falls under the secured loan statute of limitations therefore is 12 years not six.
Was the loan used to purchase the car or was it vehicle finance?
Kind Regards,
Brett England
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
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melanie_giles
Senior Member
1191 Posts |
Posted - 23 March 2008 : 20:12:11
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Paul and Brett
The 12 year rule only relates to transactions involving land and property or contracts under seal - not general secured finance, so the 6 year rule is applicable in this case under the Statute of Limitations. |
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