Suing Someone for an old debt

[zedstar]

Hi all,

This relates to a debt that somebody had with a person, call the debtor A and the creditor B. A and B were in partnership, split the partnership and 15 years later (approx) A had to pay a rather large debt that B had built up in the business. The debt was owed because when the solicitor did the work to split the partnership there was some guarantee or the other that A's name had (mistakenly) remained on. Anyway thats the background.

At the time B accepted it was their debt, claimed they had no money, no assets in their name (that was checked) and therefore no court action was taken as it was pointless.

It has now transpired that B has retrained and is practising as a solicitor, this is confirmed by their registration on the SRA site. I would therefore assume they now have money, and more importantly, have something to lose.

I know that the creditor (B) was formally asked to pay this debt back to the debtor (A) at the time as the solicitor said that this enabled to him to be able to persue this debt somewhere down the line.

So i suppose my question is, is 15 years too late, or does the fact that the debt was stated, demanded etc all those years ago means that it still stands? Maybe the courts take a dim view of dragging up old debts and this ones best left alone?

The value of the money is irrelevant to the legal point I suppose, but it was enough at the time to buy a new 911, so not life changing for most PH'ers but it was someones nest egg completely wiped out.

Thanks in anticipation...

[KevinCamaroSS]

The normal limit is 6 years from the last reminder of the debt. 15 years with no communication about it would likely be deemed 'out of time'.

[TooMany2cvs]

zedstar said:

This relates to a debt that somebody had with a person, call the debtor A and the creditor B. A and B were in partnership, split the partnership and 15 years later (approx) A had to pay a rather large debt that B had built up in the business. The debt was owed because when the solicitor did the work to split the partnership there was some guarantee or the other that A's name had (mistakenly) remained on.

Debts are normally statute barred after six years.
http://moneyaware.co.uk/2013/10/statute-barred-deb...

Did A have to pay the debt recently, or 15yrs ago? If recently, then he could try arguing that the debt is new, not 15yo, depending on how it's landed on him.

If it's 15yo, and it's just that he's only recently found out B might now have some cash, then - nope, no hope.

ESPECIALLY if B's a solicitor - because he'll have nothing to lose bar a bit of time in tying all sorts of arcane legal knots about until A runs out of the will to live.

[berlintaxi]

Seriously?

1) not all solicitors have money.
2) very very little chance of anybody taking a debt from 15 years ago anywhere near a court, they would be laughed out.

[elanfan]

Why not just ask him whether he's willing to pay? If he has money maybe he will feel morally responsible and perhaps could pay with little issue?

How would the SRA view someone that has a past history of leaving their responsibilities and debts behind them, even if time barred?

[zedstar]

It's well past 6 years since the debt was created, so it may well be time barred - I'll get my man to check all these details with the solicitor tomorrow,

Thanks for pointers

[tony1966]

a long time has passed-if debt hasnt been confirmed by debtor within certain times it will be hard to pursue
good luck though

[konark]

If the debt is time-barred why did A have to pay it 15 years later?

[anonymous-user]

konark said:

If the debt is time-barred why did A have to pay it 15 years later?

A didn't pay it 15 years later, it was paid early on.

By the way A is the creditor, B the debtor.

[zedstar]

tony1966 said:

a long time has passed-if debt hasnt been confirmed by debtor within certain times it will be hard to pursue
good luck though

Well the debtor did confirm and accept at the time that he owed the money, he just was unable to pay and I do believe that A's solicitor at the time did write him a formal letter outlining the debt. 15 years may well be too long though.

[johnfm]

You will need to apply to court to enforce - and may need reasons why you didn't enforce earlier.

[PurpleMoonlight]

I think you have this all wrong.

Unless the creditor agreed that A could be let off the hook for liability for the debt then they remain liable jointly with B.

I am guessing that when the partnership was dissolved B agreed to repay the debt, but then failed to do so. A's claim is therefore one of breach of contract against B.

However, the 6 year statute limitation still applies so A remains stuffed for instigating legal action.

[konark]

REALIST123 said:

A didn't pay it 15 years later, it was paid early on.

By the way A is the creditor, B the debtor.

but OP said 'This relates to a debt that somebody had with a person, call the debtor A and the creditor B. A and B were in partnership, split the partnership and 15 years later (approx) A had to pay a rather large debt that B had built up in the business.'

So A is the debtor and B the creditor, and the money was paid 15 years later not at the time.

[konark]

REALIST123 said:

A didn't pay it 15 years later, it was paid early on.

By the way A is the creditor, B the debtor.

but OP said 'This relates to a debt that somebody had with a person, call the debtor A and the creditor B. A and B were in partnership, split the partnership and 15 years later (approx) A had to pay a rather large debt that B had built up in the business.'

So A is the debtor and B the creditor, and the money was paid 15 years later not at the time.