Old Debt - Does it Ever Expire?

If you have a very old debt you may be wondering whether it ever becomes too old to be chased/recovered (doe it expire?).  The answer is that (in the UK) unfortunately a debt can exist indefinitely and the creditor has the right to contact you about it (although you as ever are under no obligation to speak to them about it).  The status of the debt and the measures that can be taken to chase it do change after a period of time.

Old Debt - What Happens to it?

If a debt goes for a period of 6 years without any attempt at contact between the debtor and the creditor it becomes "statute barred".  This means that although the debt still exists the creditor cannot take any legal action relating to it.  So you cannot be given a County Court Judgement or be made bankrupt over a statute barred debt.  The fact that no action can be taken often means that creditors in this situation will accept a nominal sum to settle the debt.

If you have a very old debt that has not been chased for a long time and you want it to become staute barred what you must not do is try and contact the creditor in any way - this will re-start the 6-year period.  Also note that the 6 years rule doesn't apply if the creditor has been making reasonable efforts to contact you if for instance you have moved.

What Should You Do?

This is a hard question to answer as there is no way of knowing whether you will be contacted before the debt becomes statute barred.  The danger with waiting is that the debt is having fees and interest added to it and is getting gradually bigger.  Only you can make the decision on whether to contact the creditor to try and arrange payment or to hope that they don't contact you at all.