Statute-Barred Debt

[xFuzz]

Hi,

 

Just a quick question.

 

Is debt considered statue-barred after 5 years regardless of whether it has been paid off or not?

 

Does this mean after 5 years (Scotland) it's removed from my credit file also?

 

Does council tax come under this as well?

 

Thanks guys, great forum you have here as well!

[marmaris30]

With Council Tax, councils are usually quick to obtain a Liability Orde, which remains enforceable until paid in full and without time limit or further recourse to the court.

 

Otherwise yes, debts do become statute-barred after 5 years in Scotland or 6 in England and Wales. If the creditor doesn't obtain a CCJ within that time, they cannot use the courts to enforce the debt. Credit file entries last 6 years.

[dx100uk]

just remember, CTAX cannot become SB'd.

 

dx

[BRIGADIER2JCS]

Any debt that becomes statute barred in Scotland is also completely extinguished in England and Wales the debt still exists.

[sequenci]

just remember, CTAX cannot become SB'd.

 

dx

 

Yes it can. But the rules are slightly more complicated.

 

In Scotland the limitation period is 20 years, the time limit starts from the date of the final demand.

[dx100uk]

thanks slick.

i'll have to look that one up.

i wonder if there being a LO makes a diff

 

dx

[sequenci]

They have 6 years from the date of the final demand to obtain the liability order. Once they have the liability order they can chase indefinantely.

 

Do note that the collection procedures in Scotland and England are via totally different processes