How Long Before a Debt Is Written Off in the UK?

Debt in the UK is largely governed by what is known as “the 6-year rule”; in other words, debts will be typically written off after 6 years. This means that the creditor cannot take any legal action against you to recover the money you owe after this period has passed. However, some debts may never get written off or will have a much longer period (or maybe even a shorter period!) depending on your specific circumstances.

When Is a Debt Written Off After 6 Years? 

The 6-year rule states that most unsecured debts in the UK will be written off after six years, including credit card debts, personal loans, and payday loans. Unsecured debt refers to any type of debt that has no collateral backing e.g. it is not protected by a guarantor.

Debt Write Off Procedure

The clock starts ticking on the 6-year period from the date that the debt was first owed. This means that if you miss a payment, the 6-year period will start from that date. This 6-year period will run alongside any other debts you may have. So, if you have two debts and only pay off one of them, the clock will still start ticking on the other debt.

When a debt is written off, creditors will generally mark the debt as “written off” or ”fully satisfied” on your credit report. In turn, this should have a positive effect on your credit score.

When Does the 6 Year Rule Not Apply?

There are several situations in which the 6-year will not apply. Such circumstances depend on variables such as:

• The type of debt: Some taxes may never be written off, whilst whatever is left on your student loan will get written off 30 years after the April you were first due to repay. Meanwhile, if you still owe money on your mortgage when your home has been repossessed, the time limit is 6 years for the interest on the mortgage and 12 years on the main amount.
• The amount of money owed: As a general rule, the larger the amount of money owed, the longer it may take for the debt to be written off. This is because creditors are less likely to agree to a write-off if there is a large sum of money at stake. Conversely, smaller debts may be written off sooner if the creditor agrees to it.
• The credit score of the debtor: If you have a good credit score, the creditor may be more likely to agree to a write-off. This is known as a voluntary write-off.

Moreover, if you have been making payments towards the debt, it will take longer for it to be written off. If you declare bankruptcy, however, the debt will be written off immediately.

Seek Professional Advice 

If you are worried about debt, bankruptcy or possible insolvency, contact Asset Solutions today on 0800 689 3861. Our experienced team members provide unrivalled assistance to individuals throughout the entire insolvency process and help to stop bankruptcy. We understand that anyone facing problem debt is likely to feel overwhelmed and intimidated. That’s why we’re here to support you throughout the process and help you achieve the best results possible for your situation. Contact us today for more information.