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Limitation Period and Debt Recovery

Limitation-period-debt-recovery

What is Limitation Period?

Limitation period is the period set out by common law legal systems that sets the maximum time after an event that legal procedures based on that happening may be commence. In civil law systems, similar requirements are typically part of the civil code or criminal code and are often known collectively as periods of prescription.

Commercial debt Legal services

Does Limitation period and debt acknowledgement have to be in writing?

Simply, the answer is YES.

If a debt falls within a six year period from the date of the invoice the debt can be recovered.

Of course that is provided it is recoverable! And a contractual claim exists.

If your debtor has admitted liability in writing this can extend the limitation period.  But admission must be in WRITING.

Section 30 of the limitation Act 1980

Section 30 of the limitation Act, states that acknowledgement of the debt must be made in writing and clearly signed by the parties acknowledging the debt.

Verbal acknowledgment is not acceptable for the obvious reason it leads to a “he said, she said” situation and tends to lead to legal court hearings and litigation, which is a costly and expense for anyone particularly in this current economic climate.

Debt Acknowledgement

Did you receive acknowledgement of the debt in writing within the six year period?

Is it clearly signed by the acknowledging party?

If you can answer YES, then please d feel free to contact one of our specialist debt collection officers to discuss your options.

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