Not paying back your debts is not an advisable course of action.
However, if you decide to go down this route, it’s best to know where you stand and what your legal rights are.
Most of the time, your debts will be chased down by a debt collection agency but sometimes, it is the creditor that will pressure you into business debt payback.What are debt collection agencies and creditors allowed to do when chasing a business debt?It’s a worrying time dealing with business debt; creditors and debt collection agencies will put pressure on you for business debt payback.
At the moment in the UK, there isn’t a regulatory body that governs debt collection agencies that chase business debt.
There are certain guidelines that most agencies follow when dealing with debt collection cases.Firstly, if the creditor has not contacted you regarding a business debt, and no action has been taken to recover the debt, the debt is called ‘statute barred’.
Essentially, this means that time has run out for the creditor to collect the debt, despite the debt still being legally owed to the creditor.