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Topic starter
15/08/2010 11:54 am
This was the subject of a previous post and I thought I'd do a wee guide to something called Prescription in Scotland. Basically this is the time period creditors can legally pursue an old debt.
You can argue that the creditor is out of time or ÔÇÿstatute barredÔÇÖ from taking you to court for this debt: if
ÔÇó the creditor has not already obtained a decree against you; and
ÔÇó you or anyone else owing the money (on a debt in joint names) have not made a payment on the debt during the last five years; and
ÔÇó you have not written to the creditor admitting you owe the debt during the last five years.
Overpayment of social security benefits -
The Department for Work and Pensions (DWP)has six years to take action through the courts to recover benefit overpayments. The time
starts running from the date of the decision that the overpayment was recoverable. However, if more than six years have gone by, it may still be possible to recover the overpayment from another benefit you receive as the DWP do not have to go through the courts to do this.
The usual time limit of five years applies to overpayments of Housing Benefit and Council Tax Benefit.
Council Tax/Community Charge -
Arrears of Council Tax and Community Charge can be recovered for up to 20 years. This time limit runs from the date of the final demand, or from the last time that the debt was acknowledged by you (or an agent acting on your behalf). If there was a ÔÇÿprolonged and unexplained delayÔÇÖ in recovery, it may be possible to challenge the action.
Income tax and VAT -
There are no time limits which stop HM Revenue and Customs from collecting tax once the initial assessment has been made.
Student loans -
Student loan agreements are simple contracts and this gives the Student Loans Company (SLC) five years from the date you last paid or
acknowledged the debt to go to court to enforce the agreement. There are two sorts of student loans and different rules apply depending upon when you took out the loan.
Old style ÔÇÿmortgageÔÇÖ student loans are consumer credit act agreements. Payments cannot be automatically deducted from your wages. The SLC has to go to court before they can enforce
the debt against you. This means that the time limits can apply if you have not paid or acknowledged the debt for over five years.
Phew!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
16/08/2010 1:36 pm
Thank you for putting this together Mark.
It will be really useful to be able to point people towards this information when questions come up on this topic in the future.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
16/08/2010 3:56 pm
No problem.
I'll try and put some other stuff together as a general guide and hopefully clear up a lot of the misconceptions.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
19/08/2010 2:50 pm
Hi Mark, not sure if you can answer this question in relation to benefits. My husband is off work and has been since november. He had an Subarachnoid Heamorrhage and a Stroke in Nov 09. He has been receiving Employment and Support allowance since end of May. He is now fit to work but we are having problems as his employer is not having him back at present says there is no work for him (he is a stonemason) and if he took him back he would have to pay off the other mason he got in to cover my husbands post whilst he was away. Crazy I know but my hub has to go back for the first 4 weeks on a part time basis. We are fighthing this out as he will not make my hub redundant either and he is not paying him his wages which he is legally bound to do so. A bit of a mess. We had the ESA stopped as they done a medical and see my hub fit to resume work which is true but his employer is not allowing this so we cannot live off thin air. Had to appeal and got the ESA reinstated. This is now going in front of a tribunal which we have been informed will not be heard before Jan 2011. When they see that my husband should not legally receive this benefit anymore do we have to pay this back from the date it was reinstated? We were never told at the time and just read your post. Thanks
19/08/2010 3:25 pm
Hi LMM,
I'm sure Mark will add his thoughts regarding the risk of benefits repayment in due course.
Have you taken legal or other advice regarding the employment dispute?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
19/08/2010 3:56 pm
Thanks TDA, We are seeking advice at the present time from a dedicated Stroke Advocat and also a Trade Union representative although my husband is not in a union we were passed onto this person through the Astley Ainslie hospital in Edinburgh where my Husband was going through his rehab. I can't imagine we would have to repay it but just thought maybe Mark would have an answer. The whole thing is a mess hence the reason for my TD but im pretty hopeful we will get there in the end. Thanks again for your reply 😉
20/08/2010 9:42 am
Mark may have hidden talents, but I'm afraid this kind of query isn't really within the domain of expertise of an insolvency professional, LMM. You would be better to speak to a benefits adviser - I see you are in Edinburgh, I believe the Advice Shop on South Bridge is very good.
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