Having debts, especially when they amount to a lot of money, can cause you a lot of stress. You might wish that the debt would just go away so that you can get on with your life. In fact, maybe you’re wondering whether it’s possible to run away from debt and escape having to pay it altogether. Just not paying it might seem like the ideal solution, but is it really possible to get out of paying what you owe? Although you might consider several ways to not have to pay your debt, the most likely scenario is that repaying what you owe is the smart thing to do.
Statute of Limitations
One thing that you should know is that debt has an expiry date – at least, it has a legal one. The statute of limitations defines how long a debt collector has to sue if they want to collect an unpaid debt. It’s usually between three and six years, although it could be longer. However, although this law exists, you can’t rely on it to solve your debt problems. There’s every chance that you could be sued before the statute of limitations runs out. On top of that, you will still owe the debt, even if you can’t be sued for it, which affects your financial record.
Can You Move Country or Change Your Name?
What about moving to a different country or changing your name to escape your debt? When it comes to leaving the country, this could work out for you if you’re never coming back – and if the debt isn’t passed to foreign debt collections agencies. However, it’s unlikely to work if you’re planning to return to the country where you took out your debt. While your debt remains unpaid, it could be affecting your credit score, which is going to cause you problems if you want to come back.
Filing Bankruptcy
If you’re really struggling to pay your debts, there is one way that you could get rid of them. However, it’s not a magic fix to your financial problems. Filing bankruptcy will discharge most of your debts, but it means surrendering some of your assets and making payments to help pay your creditors. A bankruptcy will also stay on your credit report for a number of years, affecting your ability to borrow in the future. Before choosing bankruptcy, you should get financial advice from a debt advisor.
Get Legal Advice
What if you believe that you are being chased for a debt that you don’t owe? The first thing that you might want to do is query it with the creditor. Ask them to provide proof that you owe what they say you do. Another option is to seek legal advice concerning the debt that you supposedly owe. Even if a creditor is claiming that you owe the debt and perhaps chooses to sue you, the right legal advice could get you out of it.
Running away from debt is most likely not the best idea or even possible. It’s much better to face it and find a solution.
