Statute Barred Debt in Birmingham

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Statute Barred Debt In Birmingham

Table of Contents

• What Is Statute Barred And How Long Can A Debt Be Chased UK?
  • How Long Can A Debt Be Chased Overseas?
    • Debt Collection Agency For Statute Barred Debts
      • Debt Collection Birmingham – Frequently Asked Questions

Is your business located in Birmingham and have someone that sadly owes lots of money?

This is sadly something that cannot be avoided and many creditors draw out the recovery of the debt that is owed.

This is due to time spent on what to do next if a debtor chooses they don’t have to pay.

We understand why this is a regular thought process for many due to the amount of debt recovery options available.

Too many options, mixed with the stress of the situation, can overwhelm anybody.

Prolonging taking action to recover the debt can have serious implications for your business’s finances.

Financial issues related to cash flow could result in insolvency proceedings and threaten its longevity.

To ensure paying the debt is done, you should ask “how long can a debt be chased in the UK”.

There are rules related to time limits when collecting debts, so this question is reasonable.

These rules make up a larger list of regulations that all creditors must abide by when attempting debt recovery.

Laws related to debt collection are not only governed in the United Kingdom, but also in the rest of the world.

The time limits that relate to the debt recovery process is known as a “Statute Barred” debt. We have put together this expert guide to outline what happens when a debt is statute and no longer exists.

What Is Statute Barred And How Long Can A Debt Be Chased UK?

It is right to feel confused if you have never heard of the term “Statute Barred” before.

This is due to the fact that you will only experience this if you have not carried out debt recovery properly.

When any amount of money owed nears the state of being statute, this can affect the collection of it.

So, what exactly is a statute barred debt and how long can a debt be recovered for?

In the United Kingdom, there is a time frame of six years in which debts can still be collected. All debts that pass the time frame of six years are then classed as Statute Barred debts.

This is defined under the Limitation Act 1980, where a creditor only has six years to chase or collect a debt.

The six-year period starts from the last known payment or acknowledgement of the debt. However, there are things that may dictate the timings of the start of the time frame.

For example, if another recognition of the debt is made within this then the time is reset. Some examples of this include credit files, recorded phone calls, letters etc.

Likewise, if the debtor was to write to the creditor then the six years would be reset.

There are times when a statute debt time frame can be extended – this is done at the discretion of the court.

If debt collection is left for too long then there is a chance this will not be able to be recovered.

How Long Can A Debt Be Chased Overseas?

The rules that determine when a debt becomes statute barred in the UK is different to those overseas.

This is due to the various laws and regulations that change from country to country. It is beneficial to know why the rules change depending on the location of the debt.

For example, if a debt is classed as statute barred in California, there is a different timescale than in the UK.

This can be recovered in four years if it is written and two years if it is verbal.

Whilst the time frame may feel like a hindrance, it is beneficial for keeping the recovery window open.

This is especially true for debts that are left uncollected for greater periods such as 12 years.

Also, this will give the debtor more time to make a payment towards the unsecured debt.

The debt may have been due to issues like mortgage shortfalls, council tax arrears, credit cards or benefit overpayments etc.

Knowing the regulations related to recovering money owed can be a challenge in itself.

This is why it is recommended to speak to a professional debt collection agency to resolve this.

A debt collection agency is by far the most affordable and effective method of recovering money.

Debt Collection Agency For Statute Barred Debts

Whilst using County Court Judgments or court action are effective methods, using a debt collection agency will provide the best results.

At Debt Collection Birmingham, we provide the easiest way for creditors to find the best agencies.

Since 2006, we have collected a list of the best agencies in Birmingham.

Our partners ensure not to jeopardise relationships as to not result in needing the Financial Ombudsman Service.

A debt collection agency has all the expertise required to help with a statute barred debt.

Sadly, many dishonest agencies may take advantage of you if they know you have a statute barred debt. They will charge you to try and collect the debt knowing it cannot be recovered.

Our No1 Debt Collection Agency Recommendations – Who Should You Choose?

If you need a commercial debt collection agency, we recommended Federal Management.

Since 2004, they have been the UK’s leading debt collection agency for business debts.

They are also authorised and regulated by the Financial Conduct Authority (FCA).

For individuals that owe the debt, you will need a private debt collection agency to recover this.

Frontline Collections is our recommended agency for these requirements.

Since 2005, they have collected millions of pounds worth of debts for clients in all sectors.

Some of these have included Independent Schools, Dental Practices and Vets.

They can also conduct international debt collection for debts that are based overseas.

Both Frontline Collections and Federal Management produce extremely high success rates of up to 90% on all undisputed debts.

If you have a debt that is close to the six-year period, speak to a debt collection agency.

Debt Collection Birmingham – Frequently Asked Questions