Debt

[nobodyelsewill]

I have a debt of around 26,000 normally every year the lender contacts me to go through my outgoings/incomings, but I haven't heard from them in 2 years just wondering why, I pay £5 per month.

What kind of debt is it? Is it just one debt of £26k or a number of smaller amounts totalling £26k?

Has the debt been sold on at all do you know?

It could be as you're still paying they've not bothered with your review or changed from a yearly review to less frequently.

I'd advise getting some impartial debt advice if you haven't already

It's an unsecured loan from 20 years ago but as my ex partner was paying it it's not statute barred unfortunately, it got passed on to me as he made himself bankrupt. Thing is I knew nothing about this I just received a letter through the door one day informing me of this debt, I asked them to provide proof of my signature on the form which they sent to me, I know it sounds daft but I genuinely didn't know about it and can't remember discussing with him about taking a loan out but he was very manipulative.

Ah I see. That's really tricky being so old but as they've provided paperwork I think it'd be almost impossible to prove it was fraudulent.

So that means you need to decide how to deal with it. You could stop paying ( would NOT recommend this), continue paying your £5 a month (although it'd take forever to clear at that rate and they could ask you to up payments or go for a CCJ) or look at other debt solutions.

I'd recommend getting in touch with Stepchange or CAP, do a budget with them and look at your options. A DRO or IVA may be suitable depending on your situation and if you have any other debts.

I think they know I will never afford to pay it back so that's why they haven't took me to court it wouldn't be worth their while surely.

Possibly not but it would be in their interest to get a judgement as then they have the reassurance that they can continue to pursue it and it won't become statute barred.

Obviously this isn't for certain and the company the debt is with may have made the decision to just accept what you can afford. However if the debt is sold on another company might have a different view.

Because the debt is significant it wouldn't surprise me if it eventually did go to the county court.

But besides the debt collectors policies I'd advise getting debt advice as you could then potentially be done with the debt sooner &/or by another means. It's not pleasant for you to have the millstone round your neck forever. Get some free debt advice. They're there to help, no judgment and no pressure to take up any solution that you don't want.

But I don't even own my own home or car I have nothing really so I don't think a CCJ would be worth it.

You may not now but because the we're talking £20k + they may want to secure their options. Another debt collector may want more than £5 repayments.

Like I said there's no guarantee but if you take action now there may be a quicker better way to deal with the debt rather than have it follow you round for the rest of your life. A DRO could write off the debt in a year for example.

It's up to you at the end of the day but you have nothing to lose by at least exploring all the available options.

Ignore typos above! Typing on my phone

Thankyou for your help

No problem, hope everything goes well for you

With no assets and the recent increase in the debt relief order limit to £30k, they're probably happy to accept your £5 a month to keep the debt running in case your circumstances change in the future and they'll be able to recover more of the debt.

However, it is very likely that you are eligible for a debt relief order, which will see the debt written off. You're likely to be banned from mainstream credit for a few years and you should check that it won't affect your work, but otherwise this is the sort of situation a DRO is designed for.

www.stepchange.org/how-we-help/debt-relief-order.aspx?channel=ppc&gclsrc=aw.ds&gclid=CjwKCAjwqeWKBhBFEiwABo_XBnD6c3vbKG2qf4iwLQaIUDay7Zm2HdARxEG11-xwOD3DYq7G6NRyxxoCRakQAvD_BwE