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Response to When should I contact lender to offer to settle s/fall ??

from Guy (guy@skipwith107.freeserve.co.uk)
Hi

The Limitation Act has a provision relating to "fraud or deliberate concealment" (s32). However, the courts have specifically held that this does not apply to someone deliberately concealing him/herself from a creditor (Lowsley v Forbes (House of Lords, 1998).

A creditors remedy, if it can't find the debtor, is to sue at the debtor's last known address. This is allowed under the Civil Proceedure Rules. However, if this is done, the creditor always risks of an application to set the judgment aside.

If the creditor issues a claim to an address that the borrower has had no connection with, there is an automatic right to have it set aside.

If someone can successfully avoid a creditor for the requisite number of years and no proceedings are issued during this time, the debt is statute barred.

All the best

Guy

(posted 7882 days ago)

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