I started debt review 10 years ago. Due to illness and circumstance I never paid up all the debt. After this amount of time, can this debt be seen as prescribed debt?
Thanks for your question.
Debt has only prescribed if there has been no attempt by the credit provider to collect it or if no summons has been issued for the debt during the last 3 years. Also, if there has been no acknowledgement of debt during the last 3 years. If you have made any form of payment in the last 3 years it constitutes an acknowledgement of debt.
Prescription of debt is a defence; thus, when the credit provider attempts to collect you can claim prescription as a defence. If the debt does not affect your credit record at this stage you can simply ignore it and if anything happens in the future claim prescription as a defence. If it is causing issues for you, we would advise that you get an attorney to write a letter on your behalf to the respective credit providers notifying them of the problems that are being caused by the debt and then claiming that it has prescribed.
If the debt has indeed prescribed already, the new Credit Amendment Act prohibits the prescription to be interrupted after 3 years.
Hope this information was helpful.