Statute Barred Debt in Manchester

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Statute Barred Debt in Manchester

Are you or your business owed a sum of money by someone in Manchester that is yet to be recovered?

This commonly happens due to creditors spending lots of time pondering on what to do next.

Due to the amount of debt recovery methods available, and the stress of the situation, this is a logical thought.

Leaving debts uncollected, however, can jeopardise the longevity of the business in question.

If you have prolonged the debt recovery, you may be asking “how long before a debt is uncollectible in the UK?”.

This is a valid question to ask as there are rules related to the time in which money can be collected.

The rules make up the list of laws and regulations that companies need to abide by when collecting debts.

Debt Collection Laws are governed not only in the United Kingdom but also in the rest of the world.

When time limits may affect the debt recovery process, this relates to “Statute Barred” debts.

This guide outlines how long you have to collect a debt and the steps to ensure this is done correctly.

Statute Barred Debt UK – What You Should Know?

If you have never heard of a statute barred debt, it is right to be confused as to what it means.

This is due to the unlikely chance you will experience this, if you have carried out debt recovery properly.

So, what exactly is a statute barred debt and how does this affect the collection of money that is owed?

How Long Before A Debt Is Uncollectible UK?

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

This is outlined under the Limitation Act 1980, which details a creditor only has six years to chase/collect a debt.

There are certain things that dictate the timings of the start of the six-year period. This period starts from the last known payment or acknowledgement of the debt.

However, if during the initial six-year period there are other recognitions, the time is reset.

This includes default notices, credit reports, recorded phone calls etc. For example, if the debtor is to write to the creditor within six years then this will be reset.

If the debt is statute, this can be extended at the discretion of the court (depends on the type of debt).

Whilst the time frame may feel like a hindrance, it is beneficial for keeping the recovery window open. This is true for debts that are left uncollected for longer than periods such as 12 years.

On the other hand, this gives the debtor more time to make a payment towards the debt.

Owing the debt originally may have been due to issues like mortgage shortfalls, bad credit files or benefit overpayments etc.

When Does A Debt Become Statute Barred Overseas?

If you are based in Manchester and have a debtor overseas, there are different rules related to statute barred debts. This is the same for international debt collection in general due to country specific rules and regulations.

The statute barred rule for unsecured debts can change from country to country and it is beneficial to know why.

For example, in California, the time in which a debt can be collected is different to the timescale in the UK. This is four years if it is written or two years if it is verbal.

It can be difficult to know the specific rules in each country, which is where the experts come in handy. If you have a debt that is close to the six-year period, speak to a debt collection agency.

Instruct A Professional Debt Collection Agency To Help

If you have a debt and are unsure how long you have to recover it, speaking to the experts is wise.

When laws are to be contended with, this can make the debt collection process even harder.

Having the right knowledge to combat these rules is a good trait to have in one’s arsenal.

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.

Whilst most agencies in the UK operate a nationwide service, it is a benefit to choose a local agency. At Debt Collection Manchester, we have gathered a list of the best agencies to use in the city.

Our partners have all the tools and assets required, ensuring a successful and affordable recovery.

They also ensure to not damage any relationships between creditor and debtor during the collection.

Commercial Debt Collection Agency

If you are owed money by a business client, you will need a commercial debt collection agency. The agency we recommend for this is Federal Management.

Since 2004, they have helped businesses recover millions of pounds worth of debts in unpaid invoices, missed credit card payments etc.

The success rates they operate are on average 90% on all undisputed debts. As well as this, they charge industry-low commission rates of as little as 6%.

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

This shows the high-quality service that is provided by Federal Management.

Private Debt Collection Agency

For any debts owed by a private individual, our recommended agency is Frontline Collections.

They are the leading private debt collection agency in the UK and have operated since 2005.

Across its long history, they have collected debts for individuals in all business sectors.

Some of the most common include Independent Schools, Vets and Dental Practices.

They provide a high calibre service which has been recognised by the Independent Schools Association (ISA). This has resulted in being awarded the title of “Gold Preferred Supplier”.

As part of their recovery services, they can also undertake international debt collection.

This is helpful for individuals that have been challenged with debtors that are based overseas.

Debt Collection Manchester – Frequently Asked Questions