QLD Should I Wait Before Filing for Bankruptcy?

[Louise22]

Hello,

I have been asked to try get some legal help.

I am currently in the process of bankruptcy as I have a car that I have not paid in over 3 years but my bankruptcy lady has just asked me when they last contacted me which was three years ago. She said that after 6 years of no contact, the debt is cleared and said maybe I should not file for bankruptcy and wait to see if they do contact me and if they do, then I can hand the car over and file for bankruptcy.

I was wondering if you could give me any help please. Her manager was of another opinion and thinks I should call the finance company and sort out the bankruptcy.

Thank you for your time

 

[Victoria S]

It is true that a debt may become statute barred. A creditor must commence a court action to recover their debt within 6 years of the date you last made a payment or you last admitted you owed the debt (the latest of those two dates).

If you are not sure whether a debt is statute barred:

• do not admit that you owe the debt;
• do not make a payment;
• do not accept a creditor’s word that you owe the debt.

Who is your "bankruptcy lady"? Is it someone who has a vested interest in you going bankrupt? It may not be necessary to file for bankruptcy if the debt becomes statute barred, however in all reality I doubt the company will allow that to happen unless you have seriously fallen through the cracks.