Creditors Chasing Debts
Are you having trouble with creditors? If you are being chased by a creditor for a debt, we can help. This can be a stressful and traumatic situation to be in. It pays to take expert legal advice.
Debt Law Advice Birmingham
If you are being chased by a creditor for a debt, we can help. Our expert team of barristers & solicitors can help explore the right debt solution for you, including debt restructuring and recovery.
There are a number of means available to debtors to stop creditors chasing debts.
Debt Limitation Periods
If a lender allows time to pass without receiving any payment, an action for recovery may become barred.
Under the Limitations Act 1980 the time limits are:
- In simple contracts, 6 years;
- In contracts under seal, 12 years;
- If the debtor acknowledges the debt in writing or makes a part payment within the original limitation period, then the time limits start to run again from the date of acknowledgement or the date of payment.
Even though the lender may be barred from pursuing recovery, a debtor may decide to pay the debt after the expiry of the time limits. Because of this, you should allow a debt which is otherwise statute-barred if the personal representatives pay the debt, and you receive evidence that the payment has been made.
The above instructions do not apply to debts in Scotland. Under Scottish law, if a lender allows time to pass without receiving any payment, an action for recovery may become barred under the Prescription and Limitation (Scotland) Act 1973. These debts are completely extinguished and cannot be enforced. Once the prescriptive period expires, the debt cannot be allowed as a deduction.
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