Credit agency has employed a solictor and I had a letter today - can they do this and why this time of year?

[HousewifeNumber1]

Some years ago I took out a credit card, spent £1k and got into trouble with it.
Back in 2007. I've since pretty much - since 2012 been a SAHM with the odd bit of freelance work. My husband is the main earner, but I am retraining and building up a business.
I've got just about enough money to pay my tax on time.
Then today I got a letter from a solictor saying they wanted me to pay the £1k - it has been on my radar to pay it but I lost 5 months work this year and I'm a start up. Why are they demanding it be paid off now? I've ignored their letters by the way. I can pay it off but it will mean I will be late paying my tax.
What do I do? I wish they'd waited till February then I could have paid it.

Can you offer them some payment plan? Some nominal payments with the majority by the end of February?

Always better to speak to creditors rather than ignoring letters. They’d most likely have been happy with a payment plan of sorts meaning that you’d not have to pay the full amount straight away. Either way call them asap and come to an arrangement over it.

Why now? Probably because you’ve been ignoring them.

Why do you think you can borrow money without paying it back?

Most will accept a payment plan. Make a budget with incoming and outgoings to show what you can afford and make an offer. Can always then settle it in February when you have the cash.

Ignoring it will not make it go away. Have you paid nothing for 5 months?!

Have you checked your credit file?

Sort out a payment plan with them, even making the minimum payments will appease them - you can’t just ignore them

If you agree a payment plan they won’t want it paid in full, just talk to them

If this happened in 2007 then the debt would be time barred. Did you continue to spend and/ or make repayments?

Ignoring debt letters is never a good idea. Is your husband aware you're in difficulty?

To be fair, they did wait 13 years, so probably didnt factor in your 2021 tax issues...

Phone Stepchange or Payplan. They will sort out a payment plan for you.
Yes, your credit rating will be screwed but tbh if it's got to solicitors it's gone anyway.
They will deal with your creditors, you just pass everything on to them.
Don't delay, phone them ASAP.

They can ask for the money you owe them and the reason why they've done it now is because you haven't paid and you're ignoring their letters. You need to speak to them.

When was the last time you made any payment towards this or acknowledged the debt in writing or on a phone call with them?

if you have to not pay tax in order to pay this debt you still have a debt problem either way.

You ran up £1k of debt and 13 years later have still not paid it off??

@Hayeahnobut that crossed my mind as well.

5 years this been rumbling on with you ignoring letters (presumably staggered throughout the year).

They don’t give a flying hoot about your Christmas plans, and rightfully so.

You’ve ignored them for 5 years and now they’ve had enough.

If you don’t pay it pronto - they will start adding their costs to it.

I haven't got into any more debt but I did have other debts which I've repaid. This one was the last one from my low earning years. I wanted to pay it all off in one lump sum and would have done if I hadn't lost my main job in April.
I think I'm going to see if I can pay in three instalments as that way my tax and this will be paid by the end of Feb.

Yes the timing sucks, but have you not been making payments on it since 2007 when you wracked up the £1,000 debt? If so then I don't think they are being unreasobable to request the money back!

Have you been making payments up until 5 months ago? If thats the case and you haven't been able to make payments due to a loss in income I'm contacting them to explain the situation would be more useful than burying your head in the sand and binning their letters.

moneyaware.co.uk/2013/10/statute-barred-debt/

It's statute barred....basically if you haven't paid anything towards it for five years they cannot pursue it

This is a debt collection agency trying to it on. Who are they?

Get advice before paying them a penny.

Dont be ringing them offering to pay full amount or set up a plan to pay full amount. Ring them and tell them you have lost your job and what is the minimum amount they are willing to accept to settle the debt..an outstanding debt like this can be discounted by as much as 60%...

To make it statued barred you need to have not acknowledge the debt for the last 6 years. You simply write to the debt agency to say that it is statued barred. Loads of letter templates online. Do not offer to pay or acknowledge otherwise you will reinstate the debt. Send the letter recorded delivery you will need to prove its been delivered.

If you have acknowledge the debt in anyway in the last 6 years, its a valid debt.

Its stat barred - they can't enforce it if you haven't made any payments in the last 6 years. Check you don't have a CCJ as that restarts the clock.

You havent answered my question. When was the last time you made a payment or spoke to them or emailed them about this? Has it been 6 years?

Do not call them!!
If you havent acknowledged the debt for 6 years then they cannot make you pay it, but if you call them now and have any sort of discussion then that is acknowledging it.

Send them a letter stating that it is stat barred. Use an online form to help you to make sure you word it correctly.

I believed the 6 year get out clause to be set in stone...it isnt..if you ring any debt advise organisation they will explain this indepth to you...