1. Introduction
Many people ask: can written off debt be collected UK? The answer depends on the circumstances. A “written off” debt usually means the creditor has decided they are unlikely to recover the money. However, this does not always mean the debt no longer exists. Understanding your legal position is essential before taking any action.
2. What Does “Written Off” Debt Mean?
When a creditor writes off a debt, they record it as a loss in their accounts. Common reasons include:
- The borrower cannot afford repayments.
- The debt has been outstanding for many years.
- Legal recovery options are too costly.
However, the debt itself does not always disappear unless it is legally written off through insolvency, bankruptcy, or an agreement.
3. Can Creditors Still Collect a Written Off Debt?
Yes, in many cases, a creditor may still try to collect a written off debt. This could include:
- Selling the debt to a collection agency.
- Requesting voluntary payments.
- Contacting you with settlement offers.
But if the debt is statute-barred or included in a formal insolvency solution, collection is no longer enforceable.
4. Understanding Statute-Barred Debt in the UK
A debt becomes statute-barred after six years (five in Scotland) if:
- No payment has been made.
- You have not acknowledged the debt in writing.
- No County Court Judgment (CCJ) has been obtained.
Once statute-barred, the creditor cannot legally enforce repayment through the courts, though they may still contact you.
5. The Difference Between Written Off and Settled Debt
- Written Off: The creditor accepts they won’t recover the money, but the debt still technically exists.
- Settled: You’ve paid an agreed amount, and the creditor confirms the account is closed.
Only settlement or insolvency guarantees closure of the debt.
6. Impact of Written Off Debt on Your Credit Report
Written off debt usually shows as a default on your credit file. This remains visible for six years from the default date. After that, it is automatically removed, even if the debt was never paid.
7. When Debt Cannot Be Collected
Debt cannot be collected if:
- It is statute-barred.
- It was included in bankruptcy, an IVA, or Debt Relief Order (DRO).
- A court ruled the debt unenforceable.
In these situations, creditors must stop pursuing you.
8. What to Do If Contacted About a Written Off Debt
If you are contacted about a written off debt:
- Ask for proof of the debt.
- Check whether it is statute-barred.
- Do not acknowledge the debt until you confirm its status.
- Seek professional advice if you are unsure.
Frequently Asked Questions
1. Can written off debt come back after many years?
It depends. If the debt is statute-barred or included in insolvency, it cannot be collected. Otherwise, creditors may still attempt collection.
2. Will written off debt affect my credit score?
Yes, it will appear as a default for six years but disappears afterward.
3. Can a debt be sold after being written off?
Yes, creditors often sell written off debts to debt collection agencies.
4. Does written off mean I never have to pay?
Not always. It depends on whether the debt is legally enforceable.
5. Can I ignore letters about written off debt?
You should not ignore them. Always check the status of the debt before responding.
6. Is there a way to legally write off debt permanently?
Yes, through bankruptcy, an Individual Voluntary Arrangement (IVA), or a Debt Relief Order (DRO).
Conclusion
So, can written off debt be collected UK? In some cases, yes. A written off debt does not always mean the end of your liability. Creditors may still attempt collection or sell the debt on. However, once a debt is statute-barred or cleared through insolvency, it cannot legally be pursued. Always check the status of any debt before responding and seek advice if you’re uncertain.