What can I do about statute barred debt?

Statute barred debt is money owed that has been ignored by both parties involved, for several years. This debt is typically not enforceable by law because neither debtor nor creditor have made acknowledgement to the debt. This may not have to be paid when a debtor acts under the Limitations Act 1980.

This act states that after 6 years without any reference to the arrears, it is no longer enforceable to recover. Although the money owed is effectively dismissed, it still exists. The debtor will have this debt on their credit reference record and it will affect future applications for credit.

If you are owed debt which you think may be statute barred, there are a few options to consider in order to recover arrears.

Evidence of debt

Firstly, you should seek any evidence of communication or correspondence over the past 6 years between you and your debtor. You need to obtain evidence of the debt in order to dispute the fact it is statute barred. Collating any information at all regarding the monies owed will be beneficial.

County court judgement

If you have ever taken a country court judgement (CCJ) against the debtor, it may not be statute barred. You can check whether court action ever took place using the official Registry of Judgments, Orders and Fines.

Recovering statute barred debt

If it should be apparent that the debt is definitely statute barred, it does not mean that the debtor will not pay the monies owed. You may be able to arrange a settlement with the debtor in order to recovery some of the arrears. The advice and support of an enforcement agency is imperative in this situation, to gain the best chance of recovering monies owed, statute barred or not.

Able Investigations have been providing enforcement solutions in Bristol and throughout the UK for several years. So if you’d like some help with recovering long-term debts, our professional team can help. Speak to us today, by calling 0845 370 7401.

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