Can You Get Out of Debt Without Paying?

Can You Get Out of Debt Without Paying?

Costs of doing business continue to rise and debts can mount up for even the most diligent and astute business minds. For some business owners, this raises the question of how to get rid of debt without paying?

Debt can accrue simply, but dealing with debt can become quite a complex matter with significant repercussions. The simple answer to can you get out of debt without paying, is yes, sometimes.

There will always be implications for choosing not to repay debt, so it would be prudent to get professional advice regarding your debt to ensure you are making wise choices that lead to the best outcome for your business now and into the future.

How to Get Rid of Debt Without Paying?

There are laws in the UK governing consumer rights regarding entering into contracts and liability for debt accrued. Depending on your circumstances, understanding these laws could help you to understand how to get rid of debt without paying.

For example, according to citizen advice groups if you have entered into a contract and the other party didn’t first ensure you could make the repayments, you may be able to get out of debt without paying. Likewise, if you were under 18 years of age at the time of taking on the debt, there are only day-to-day expenses for which you can legally be held liable. There is also consumer protection if you felt forced into signing an agreement that you did not understand properly, and you may be able to get rid of that debt without paying.

Failing to pay debts, could lead to court action and potentially a difficult and distressing process. Understanding your rights and your options around debt management is crucial for you and your business, and your professional reputation.

The Limitations Act in the UK governs the time limit for creditors to take action against someone. This means that even if you are liable for a debt, the creditor only has six years in which to take action against you. There are caveats to that, such as:

• You must not have accepted liability for the debt in that six-year period,
• You must not have paid any money towards the debt in that time,
• And you must not have contacted the creditor in writing (by letter, email, text, or even chat) in the six-year period.

Any payments or written contact resets the six-year limitation. Mortgages are the exception to the six-year rule, with six years applying for the interest owed, but 12 years for the main amount.

It is certainly possible to learn how to get rid of debt without paying, but it is important to understand any implications from this. It is wise to consider will you be paying with your reputation or your credit score, even if you are not paying with your cash.

How Can Irwin Insolvency Help Your Choices Around Debt?

If you are unsure if you are liable for debt or able to get out of debt without paying talking to a professional can help you understand the implications of different options. Irwin Insolvency has solvency experts who can tailor advice to help you understand whether you are liable for debt, and the best options available for resolving debt in your particular circumstances. Contact Irwin Insolvency today.