# When does a debt dissappear or become unenforceable by law?



## biggun (24 Nov 2014)

Hi there everyone, having read about this extremely interesting topic on this forum,  I have another situation that you guys/girls may be able to throw some light on. Back in the day we bought land and built a house in Ireland with the intention of then finding some work and living a much more relaxed life to that of the UK. Things didn't work out and we mortgaged it, returned to the UK put the money towards another house and returned to work. We put the house in Ireland on the market but couldn't sell it. We couldn't afford to pay both mortgages so stopped paying the Ireland one. We received a few letters but never replied, we also received a couple of phone calls, one of which I told them that we could no longer afford to make the payments and that they should repossess the house and the land, to which they replied that they did not want the house and land and would only accept the money. This is over six years ago now and we have heard nothing since, our house is being looked after and kept up to scratch by a relative. Where do we stand with this situation????


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## Gerry Canning (25 Nov 2014)

JUST SOME QUICK THOUGHTS.
It may well be they have issued a judgment against you on the strength of mortgaged property in Ireland.
Means that should Irish house be sold they get proceeds.
The Debt does not just disappear.
It may now be a good time to properly approach the Bank and see can you agree closure ie you sell it , give them the money and you both call it quits.

I see no profit in Bank chasing you in Uk etc, but depending on who they sell your debt too there is a slim chance your Uk home could come into play. .


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## biggun (29 Nov 2014)

There shouldn't be a judgement as we never received any correspondence as the bank has contact details. I know that the debt doesn't dissappear but does it become unenforceable by law after six years of inactivity? Debt cannot just be settled as house and land value is probably only half the original debt amount!


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## noproblem (29 Nov 2014)

Surely if you got a loan from someone you're not now trying to avoid paying it back. If someone got a loan from you and avoided paying you back, would you like it? A debt is a debt, pay it back.


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## uncle betty (30 Nov 2014)

Gerry Canning said:


> JUST SOME QUICK THOUGHTS.
> It may well be they have issued a judgment against you on the strength of mortgaged property in Ireland.
> Means that should Irish house be sold they get proceeds.
> The Debt does not just disappear.
> ...



Could I ask please, what is your basis (legal or otherwise) for saying this ? 

I would engage a solicitor to do a UK-Ireland search for outstanding judgements. From the OP's point of view in general, would this not be preferable to having direct contact with the bank ? 

A solicitor will also be able to confirm whether there is a six year limit on actions, and whether or not the UK home could come into play.

If I were the OP, I would be taking professional legal advice, instead of hoping that some randomer on the internet will tell me what I want to hear.

I would certainly be ignoring the 'surely you should just pay your debts' tone of voice of some other posters. Why bother ? ? ?

edit - there is a Key Post and thread on this very sub-forum called 'Does my debt disappear after 6 years...' which will be useful to the OP. I can't hyperlink to it as I have less than 15 posts.


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## biggun (3 Dec 2014)

Thanks for the constructive reply. I have read the extremely interesting thread that you are referring to but didn't find anyone with my situation. I did post on there but nobody replied so I started a new thread


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## Gerry Canning (4 Dec 2014)

Uncle Betty.

I started my comments as {some quick thoughts} on what was posted.
I would not wish to be seen to give 100% advice.
As you say poster can take proper legal advice.

You highlighted {there is a slim chance UK home could come into play} and ask on what basis I say this.
On other AAM posts on Debtors living outside of Ire , I would have formed the opinion that in most cases action is not taken to chase debt. I do understand that if there is a substantial sum or other reasons Banks will chase .
I could only respond to posters initial post .
I did advise and believe poster should try to resolve via Bank.
In particular I would ,(not knowing the full story )not like to presume to lead anyone down (pub advice) type road.


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## 44brendan (4 Dec 2014)

If a debt is secured by a mortgage/charge over Real property (land/buildings) the statute of limitations is 12 years!


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## uncle betty (6 Dec 2014)

Gerry Canning said:


> Uncle Betty.
> 
> I started my comments as {some quick thoughts} on what was posted.
> I would not wish to be seen to give 100% advice.
> ...



Hi,

Thanks for taking the time to reply.

I wasn't sure whether your initial post implied that certain known debt agencies have a policy of attacking the UK home; or that in general, some types of debt agencies have legal instruments to do so, while others do not; or that some types of financial instruments would have those provisions.


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## Fin Crusader (31 Dec 2014)

Just to let your readers know that financial institutions run computer programmes regarding debt, charges and judgments, so they reapply to the courts to keep the debt alive before they become barred by the statute of limitations, unless of course you have come to sum agreement with them, declared yourself bankrupt or availed of the insolvency services of Ireland.


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## Gerry Canning (6 Jan 2015)

Fin Crusader said:


> Just to let your readers know that financial institutions run computer programmes regarding debt, charges and judgments, so they reapply to the courts to keep the debt alive before they become barred by the statute of limitations, unless of course you have come to sum agreement with them, declared yourself bankrupt or availed of the insolvency services of Ireland.


...........
Fin,
Can you advise me please?
From Bren 44,s thread it seems that after 12 years all debt becomes unenforceable.
So if no movement was made by borrower for 12 years then the lender can still  at 11 years 364 days just reapply to keep the debt alive for another 12 years?..
Seems a trifle unfair?


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## 44brendan (6 Jan 2015)

No they can't reapply to anyone to keep the debt alive. Finn Crusader's post is incorrect. Some financial institutions may do this but none that I am aware of as it just would not be worth the manpower required. Once a debt is w/o it is forgotten about and the FI moves on. There is no benefit in doing what FC is suggesting.


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## Time (6 Jan 2015)

They get their 12 years and that is their lot.


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## Fin Crusader (6 Jan 2015)

Let me clarify please, creditors have 12 years from the date of judgment against a mortgage debtor, to seek an enforcement order. However creditors and debtors go to the courts regularly to get a stay of execution. Debtors can only get a stay if they have cooperated with the creditor. This stay then stops the 12 year rule clock.
This is academic as most financial institutions will seek payment of a mortgage debt within the 12 year period, in other words they will seek the security over which the mortgage was issued, ie the property.
In relation to the family home, the courts have a wide discretion in issuing an order for sale against a family home. Financial institutions  rarely go after the principal private residence of people in debt unless the home is a large residence with lots of equity in it. Then they will seek to negotiate with the debtor or ask the courts to issue an order basically resulting in the debtor trading down to a smaller house.


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