Discussion
stevieb said:
6 years IIRC but i dont know how the 6 years are applied if its from:
6 years signing of the credit agreement
or
6 years from the last date of non-payment
or
6 years from the last point of recorded contact
6 years signing of the credit agreement
or
6 years from the last date of non-payment
or
6 years from the last point of recorded contact
Edited by stevieb on Tuesday 13th March 11:58
The Limitations Act is 6 years from the last point of contact or payment.
However, there are exceptions to this for example if a court judgement has been entered against the debt etc.
Time-barring in England is a Prescription limit rather than an Extinction limit, the difference being that Extinction will automatically wipe out the debt, whilst Prescription merely means the debt is not (always) enforceable in Court. You can still be chased for debts, and the Creditor is within its rights to charge interest as per your contract. It would be very hard to argue time-bar if they had been chasing you, as they could show they had actively been trying to recover the debt, and you were ignoring them. There can also be issues if you have moved address or changed your company name, which they can argue in court has slowed their recovery. It is ultimately the Courts decision if Time-Bar applies, so consult a lawyer before using it as defense outside of Court.
fourmotion said:
Time-barring in England is a Prescription limit rather than an Extinction limit, the difference being that Extinction will automatically wipe out the debt, whilst Prescription merely means the debt is not (always) enforceable in Court. You can still be chased for debts, and the Creditor is within its rights to charge interest as per your contract. It would be very hard to argue time-bar if they had been chasing you, as they could show they had actively been trying to recover the debt, and you were ignoring them. There can also be issues if you have moved address or changed your company name, which they can argue in court has slowed their recovery. It is ultimately the Courts decision if Time-Bar applies, so consult a lawyer before using it as defense outside of Court.
But if they have been atctively been chasing then they would not leave this 6 years to get to court to make a judgement.
why would they run the risk of going into this Time-bar if there was no need to. why give the debtor a chance to get out of it all.
Edited by stevieb on Tuesday 13th March 13:25
stevieb said:
fourmotion said:
Time-barring in England is a Prescription limit rather than an Extinction limit, the difference being that Extinction will automatically wipe out the debt, whilst Prescription merely means the debt is not (always) enforceable in Court. You can still be chased for debts, and the Creditor is within its rights to charge interest as per your contract. It would be very hard to argue time-bar if they had been chasing you, as they could show they had actively been trying to recover the debt, and you were ignoring them. There can also be issues if you have moved address or changed your company name, which they can argue in court has slowed their recovery. It is ultimately the Courts decision if Time-Bar applies, so consult a lawyer before using it as defense outside of Court.
But if they have been atctively been chasing then they would not leave this 6 years to get to court to make a judgement.
why would they run the risk of going into this Time-bar if there was no need to. why give the debtor a chance to get out of it all.
Edited by stevieb on Tuesday 13th March 13:25
Agreed.
I think the main reason for the rule is for debts which have been forgotten about and then 'refound'.
A possible reason why a CCJ would not be issued would be if the debtor was deliberately evasive, thus without an address there can be no judgement.
stevieb said:
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why would they run the risk of going into this Time-bar if there was no need to. why give the debtor a chance to get out of it all.
why would they run the risk of going into this Time-bar if there was no need to. why give the debtor a chance to get out of it all.
Edited by stevieb on Tuesday 13th March 13:25
It has been know to leave the debt until as late as possible to rack up the charges.
Slightly O/T With a defamation claim its limitation period is 12mths, where again the 'victim' if often advised to wait to the 11th mth so as to 'allow' the defamation to be spread/published as far and wide as it will go because that directly affects the amount of damages/compensation/awarded if the case is won by the defamed.
stevieb said:
why would they run the risk of going into this Time-bar if there was no need to. why give the debtor a chance to get out of it all.
Edited by stevieb on Tuesday 13th March 13:25
Very often small businesses do not have the funds or legal resources to take someone to court, or it is simply not financially viable. eg. letter of intent to prosecute written on solicitors headed paper £85, cost for representation (or at a minimum some legal consultation prior to hearing) is a c£300 (depends on location, seniority of solicitor, complexity of case). If the debt is only £500 then its probably not worth taking them to court, especially discounting its value for your time and effort.
justinp1 said:
A possible reason why a CCJ would not be issued would be if the debtor was deliberately evasive, thus without an address there can be no judgement.
slightly off-topic and apologies to the OP...
Is a CCJ tied to a name AND and address then? We moved house 4 years ago and found out recently that 3 years ago FGEss had a CCJ against her at the old address - a year after we had moved.
thanks
FG
fourmotion said:
stevieb said:
why would they run the risk of going into this Time-bar if there was no need to. why give the debtor a chance to get out of it all.
Very often small businesses do not have the funds or legal resources to take someone to court, or it is simply not financially viable. eg. letter of intent to prosecute written on solicitors headed paper £85, cost for representation (or at a minimum some legal consultation prior to hearing) is a c£300 (depends on location, seniority of solicitor, complexity of case). If the debt is only £500 then its probably not worth taking them to court, especially discounting its value for your time and effort.
Thats what small claims are for.
FunkyGibbon said:
justinp1 said:
A possible reason why a CCJ would not be issued would be if the debtor was deliberately evasive, thus without an address there can be no judgement.
slightly off-topic and apologies to the OP...
Is a CCJ tied to a name AND and address then? We moved house 4 years ago and found out recently that 3 years ago FGEss had a CCJ against her at the old address - a year after we had moved.
thanks
FG
No, its tied to you, the reason that they need a current address though is to send you the summons correctly. If you did not receive the summons and you did not have a chance to defend the claim then you can apply to the court to have the case annulled.
justinp1 said:
FunkyGibbon said:
justinp1 said:
A possible reason why a CCJ would not be issued would be if the debtor was deliberately evasive, thus without an address there can be no judgement.
slightly off-topic and apologies to the OP...
Is a CCJ tied to a name AND and address then? We moved house 4 years ago and found out recently that 3 years ago FGEss had a CCJ against her at the old address - a year after we had moved.
thanks
FG
No, its tied to you, the reason that they need a current address though is to send you the summons correctly. If you did not receive the summons and you did not have a chance to defend the claim then you can apply to the court to have the case annulled.
cheers - we'll be doing just that then.
FG
FunkyGibbon said:
justinp1 said:
FunkyGibbon said:
justinp1 said:
A possible reason why a CCJ would not be issued would be if the debtor was deliberately evasive, thus without an address there can be no judgement.
slightly off-topic and apologies to the OP...
Is a CCJ tied to a name AND and address then? We moved house 4 years ago and found out recently that 3 years ago FGEss had a CCJ against her at the old address - a year after we had moved.
thanks
FG
No, its tied to you, the reason that they need a current address though is to send you the summons correctly. If you did not receive the summons and you did not have a chance to defend the claim then you can apply to the court to have the case annulled.
cheers - we'll be doing just that then.
FG
However, this is not a guarantee that the court will agree. Similarly, it will most likely be the case that person who is still owed will start legal proceedings again. However, if you pay them there will be no CCJ.
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