Debt Solicitors

The financial world is full of jargon which can be very difficult for the average person to keep on top of. With money lenders and debt collection agencies throwing jargon about your money at you it helps to know all the types of debt you can; statute barred debt is one of these types.

Statute barred debt is a debt that is not enforceable, due to the fact that the time a creditor has to chase payment has passed. This is detailed in the Limitations Act 1980.

At Duncan Lewis we have found that a common confusion lies in that many people confuse the act as a means to avoid paying debt; which is not the case. If your debt is not statute barred then there is no way to use the Limitations Act to avoid paying it. On the other hand, non-enforceable debts are often subject to more sinister methods of repayment.

Though it shouldn’t be the case, non-enforceable debts are often pursued by debt collection companies and at Duncan Lewis our litigation and debt solicitors have encountered people who have been subjected to threatening phone calls, letters and threatened with bailiff action.

How long can a creditor chase a debt for?

Under the Limitations Act 1980, a creditor has up to six years to chase unpaid debts, or in the case of some mortgage shortfalls; twelve years. This is what is known as the ‘limitation period’.

The ‘limitation period’ starts from the time of your last payment and not the total length of time that you have been making payments. If you have a Court Judgement (CCJ) registered against you before the limitation period has passed it can be enforced at any point.

A couple of points that you should note here is that there is no limitation period for a CCJ. There is also no notice period for debts owed to the Crown, such as income tax.

When can The Limitations Act 1980 be used?

According to The Limitations Act, a debt cannot be enforced when the following conditions have been met;

1. The creditor has not registered a county court judgement against you
2. You have not made a payment in the last six or twelve years
3. You have not admitted the debt in writing in the last six or twelve years

So what does ‘not enforceable’ actually mean?

By no means does it mean when a debt is statute barred that it is written off or has disappeared. If a debt is not enforceable it basically means that if a creditor tries to take you to court you will be able to defend the case and you won't get a CCJ.

It is also deemed unfair practice if a creditor continues to chase a debt that is statute barred, so if a creditor continues to pressure you for payment then you could make a complaint.

If you think that your debt is statute barred, then the proof lies with the creditor to prove that you have to pay it, rather than you proving that you don’t. If you have been contacted by a creditor, but you are certain that your debt is statute barred, then you will need to contact the creditor and discuss the debt with them first.

If you have a statute barred debt, or are experiencing legal trouble with creditors then we can help you. At Duncan Lewis all of our experienced debt solicitors highly successful in debt cases, including statute barred debts. Get in touch today and we will help to solve your issue.