About five years ago, I moved bank accounts as I was so overdrawn I was living off my overdraft and was in real trouble financially, I was fighting off baillifs and trying to pay of ccj's.
After I moved to a different bank account I completely forgot about the original account which had a overdrawn balance of £3159.00. After a couple of months I started getting letters from finance companies that the bank had sold the debt to and stupidly I just binned them as I just couldnt cope with the stress of dealing with them.
I heard nothing for about twelve months and then I moved house. The debt just competely slipped my mind and all my other financial problems were sorted. This week I was sent a Statutory Demand - they are threatening to make me bankrupt ....I am in a blind panic.
I am normally an honourable person and do not like having debts. I am a single parent, I live in council property and want to rid myself of this debt. Going through my finances I could probably afford to pay £50 per month....do you think they would accept this amount?
Although this is my only debt, I have no savings and no other capital or recourse to any other money - I earn approximately £16000.00 a year.
monxy2 Mon 21/07/08 09:13
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When you say 'about 5 years ago', can you be any more specific?
If a debit hasn't been paid or acknowledged by you in the last 6 years is becomes statute barred and is therefore unenforceable through the courts.
If it is less than 6 years, you could offer them £50 and send them a copy of your income and expenditure so that they can see that you really can't afford any more.
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They will pretty much always take the money that you are offering. They may ask you to fill in an income / expenditure form to confirm your salary and your normal monthly outgoings.
There is no particular advantage to them for making you bankrupt if you have no assets worth seizing.
Phone them up or write to them and explain that you wish to come to an arrangement.
Since this debt has been sold, the arrangement that you come to with the debt company will not effect your credit rating either.
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cheeky chops If a debit hasn't been paid or acknowledged by you in the last 6 years is becomes statute barred and is therefore unenforceable through the courts.
If someone moves house (as indicated above) and does not tell the company where they are moving to, it does not become statute barred after 6 years.
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Question Author
Cheeky chops - I cant be more specific, I am sorry to say that I was suffering from depression at the time and cannot remember the date I moved accounts, it was in the last five or six years but I have moved house during this time so as Queeny states I still owe this money. I would say that I want to pay my debts off and to be honest becoming bankrupt is a big no no for my employer I would find myself made sacked for missconduct. My main worry is if the finance company will accept the amount I can afford to pay?
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Honestly, you don't have much to worry about since you have no assets.
What would you rather have:
1) £50 per month for a few years
2) Nothing?
The debt collection company probably paid around £300 for your debt. They are relying on people like you who are honourable to make their money.
Obviously, they buy a lot of debts of people that they can't trace, so it is not quite the money making enterprise that people think it is.
BTW it is oneeyedvic or just vic not queeny ;-)
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Question Author
Apologies oneyedvic, obviously the worry is affecting my reading and writing skills :) many thanks for your replies it has set my mind at rest a little. I have decided to send them a financial statement and an offer (via recorded delivery) and hope that this can be sorted out.
Cheers!
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1. Quite often issue of a Statutory Demand is a scare tactic & the debt owner has no intention of carrying out the threat. It would cost them over £1K to bankrupt you and, if they are told your financial circumstances (in particular that you do not own any property), they are most unlikely to go ahead. Of course, unfortunately, you can't 100% rely on this.
2. Vic - where does your information that moving house without telling the creditor means the 6 year statute of limitations does not apply come from? All the information I've ever had on this subject is that the statute applies regardless.
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Vic - thank you; very interesting. But it does refer to deliberate concealment & I somehow suspect it would be mighty difficult to prove that the failure to notify the address change was done deliberately to conceal the fact, rather than being the sort of oversight that many people suffer from.
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I work in the finance industry and my previous employers have certainly used that tack and received payment later. Obviously depends on the judge in question on the day.
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Question Author
Many thanks to your advice to both ot you, I have found another website that has some really good advice on it http://www.consumeractiongroup.co.uk/forum/ .
From the information held on that website, the consensus is that I should make an application at the county court to have the statutory demand set aside, request original documents from the debt collector that (a) proves that I owe the amount. (b) they have the right documentation in order to pursue the debt.
Apparently this usually results in the debt collectors not turning up at court therefore they were never serious about enforcing the demand. If they do not provide the documents within a time table it seems that they are commiting an offence and I could then be in the position recovering damages from them!
I know that I owe this money and i am perfectly willing to repay what I owe, from reading what other people have said about the particular debt collector I have to deal with, it is unlikely they would accept my offer and would use quite "ungentlemanlike" tactics to make me pay more.
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