Can credit card debt be written off?

A write-off is when a creditor has agreed to no longer pursue you for an outstanding debt. They will have done this based on your circumstances without you having to make a payment. You can find out more in our Write off debt guide. 

Creditors may agree to write-off a debt if they know that you will struggle to repay the debt and only have assets of limited value, or no assets at all. For example, a creditor may agree you won’t be able to repay a debt if you can’t currently afford your repayments and have a long-term illness or disability which means you are unable to work. Or you may be receiving benefits long term or be retired. 

Creditors would also have to write-off some or all your debts if you go insolvent. Insolvency options include a debt relief order, bankruptcy, or an IVA.  

These insolvency options are covered in more detail in the Debt solutions that may lead to write off section. 

Statute-barred and unenforceable debts

Time limits: how long before credit card debt is written off?

You may have read that some debts are ‘written off’ after a certain amount of time.

Information on your credit file

Information such as missed payments, default notices and court judgments will generally stay on your credit file for six years.

If a debt is no longer shown on your credit file, it does not necessarily mean that the money is no longer owed. However, if you’ve not paid or written to a creditor for at least six years and the creditor hasn’t obtained a court judgment against you, the debt may be statute barred. This means that the creditor would be too late to enforce the debt through court. 

Statute barred debts

The Limitation Act 1980 sets out the rules on how long a creditor (who you owe money to) has to take certain action against you to recover a debt. If a debt is statute barred, it means the lender has run out of time to use certain types of action to try and make you pay the debt. 

For credit card debt and most other credit debts, the limitation period will be six years. You must not have made a payment or written to the creditor acknowledging the debt during this six-year period. 

The exact time frame and conditions that need to be met for a debt to become statute barred will vary depending on the creditor. You can find out more in our Statute barred debts: what they are and when debts become statute barred guide.  

Limitation rules can be complicated, so if you think your debt may be statute barred, call and get free advice from one of our expert advisers.  

7-year debt forgiveness

You may have read about 7-year debt forgiveness. This relates to how long information stays on someone’s credit file in the United States of America, it won’t impact your debts here in the UK. 

Unenforceable debts

Under the Consumer Credit Act 1974 (CCA), agreements have to contain certain information. If they do not, this can make them legally unenforceable. Most agreements will include all the information they need to. If your credit agreement was made on or after 6 April 2007, a court may still allow a creditor to enforce some, or all of the agreement even though required information is missing.   

Under section 77(1) of the Consumer Credit Act 1974 a creditor should send you a copy of your credit agreement within 12 working days, if you ask in writing and pay a £1 fee. A debt may be unenforceable if your creditor does not respond to the request. However, you should be careful before deciding not to pay the debt. 

• The creditor only needs to supply a ‘true copy’ of the agreement. This does not have to be the original agreement and does not need to be signed.  

• The debt would be unenforceable after 12 working days if a copy of the agreement is not supplied. However, if a copy is supplied after the 12 days the debt would be enforceable again.  

This is a complicated area so before relying on the CCA to argue a debt is unenforceable, give us a call and one of our expert advisers can help. 

 Loopholes

There is no ‘magic’ solution that will write off your debts outside what we cover in this guide.  

Be careful of any websites or organisations promising to write off your debt through legal loopholes. It is likely that they are just referring to the insolvency options that we mentioned earlier. These organisations will generally be looking to make money from you.  

If you’re unsure, call us and one of our free expert advisers can check what the organisation is claiming and whether it’s legitimate.  

When creditors consider a write-off (and when they don’t)

Creditors may agree to write-off debt if they know that you will struggle to repay the debt and have assets of limited value, or no assets, to sell. For example, you may have a long-term illness or disability which means you are unable to work. Or you may be receiving benefits long term or be retired.

Before agreeing it is likely that the creditor will want evidence to support why they should consider writing off your debt.  

• Provide a copy of your budget sheet that shows you have very little, or no surplus money to pay your debts. You can get help to complete your budget using My Money Steps.  

• You’ll need evidence to support that you are unlikely to be able to afford to repay the debt in the future. This could be evidence of a long-term illness or disability.  

• If your retired or are likely to remain on benefit income only, send evidence of this to your creditors.  

Creditors are less likely to agree to write-off your debt if you:  

• have a surplus on your budget that can be used to make repayments;  

• you own a property or have other assets; or  

• they think there is a reasonable chance that your situation could improve in the future. 

You can find out more in our Write-off guide.  

After death: is credit card debt written off?

Credit debts, such as loans or credit cards, should be written off if the debt is only in the deceased person’s name and they had no assets when they died.  

If the debts are in joint names, the surviving person will be liable for the debt. If there is a guarantor, they may be liable for the debt. The guarantor will need to check the terms of the credit agreement and their guarantee. 

If the deceased person has left assets, they form part of the deceased’s estate. It may be possible for the creditor to recover the money owed from the estate. 

You can find out more about this in our What happens to debts after someone dies guide. The guide also covers what happens to other types of debt.  

How to get credit card debt written off: step-by-step

1. Build your budget sheet and list any assets. You can use My Money Steps to help you.  

2. Gather supporting evidence. This could be proof of your benefits, ill health or disability.  

3. Send our Write-off the debt request sample letter to each creditor.  

4. Wait for the response. Your creditor may agree, refuse or make a counteroffer.  

5. If a creditor refuses you request, you can consider using our Write-off the debt (second request) sample letter to see if they will change their mind.

6. If the creditor still refuses your request, you may consider making a complaint to the creditor and escalating to the Financial Ombudsman Service (FOS).  

If a creditor has refused your write-off request, you could offer a partial write-off instead. This is where you ask the creditor to write off part of the debt if you agree to make a payment in an agreed amount of time.  

Debt solutions that may lead to write-off

Debt relief order (DRO)

A DRO stops creditors taking action against you. If your situation has not improved after 12 months the debts included in the DRO will be written off. Applying for a DRO is free of charge. 

To qualify for a DRO, you must:  

• be unable to pay your debts;  

• owe no more than £50,000 in total; 

• have savings or valuable items worth less than £2,000 in total;  

• own a vehicle worth less than £4,000 (if you were to sell it today);  

• have £75 a month or less at the end of the month to make your debt repayments; 

• live in England or Wales, or have lived or worked in England and Wales in the last three years; and 

• have not had a DRO in the last six years. 

You can find out more in our Debt relief orders guide. 

Bankruptcy

Bankruptcy may be a solution if you are unable to repay your debts in a reasonable time.  

It costs £680 to go bankrupt. Your creditors won’t be able to take action against you whilst you are bankrupt. After 12 months (maybe longer) you will usually be discharged from bankruptcy and the debts will be written off.  

However, you may need to pay a monthly amount into the bankruptcy for up to three years if you can afford it. 

You would also be at risk of having any assets, such as a property, sold as part of the bankruptcy process.  

You can find out more in our Bankruptcy guide 

Individual voluntary arrangement (IVA)

An IVA is a legally binding agreement to repay part of your debt over a period of usually five or six years. Any remaining debt is then written off when your IVA is completed.   

You can find out more in our Individual voluntary arrangement guide 

Credit file impact and future borrowing

If a creditor agrees to write off your debt, the balance shown on your credit reference file should be set to zero. However, getting a debt written off will have a negative impact on your credit reference file and may affect your ability to obtain credit for up to six years.

Defaults

If the account has not already been defaulted, a default will usually be recorded on your credit reference file. A default is added to show future lenders that you have not kept to the terms of your credit agreement.  

If you have already fallen behind on payments, the creditor may already have defaulted the account and recorded this on your credit file. This is generally done once you have missed three or more payments.  

If your account has already been defaulted, the creditor cannot add another default to your credit file when a write-off is agreed. 

Defaults will stay on your credit file for six years.  

Partially settled vs partially satisfied

It is unlikely that a creditor will mark your credit file as settled. An account can only show as settled on your credit file if it was closed within the original terms and conditions of the agreement.  

If a creditor has issued a default notice before agreeing to write-off the debt, they are likely to mark the account as partially satisfied.  

If the creditor did not issue a default notice before agreeing to write off the debt, they are likely to mark the account as a partial settlement.  

This information will stay on your credit file for six years. 

Future borrowing and credit repair companies

Your account being defaulted and being marked as partially satisfied/settled will affect your ability to obtain credit for the time that they are showing on your credit file (usually six years). Whether you can get credit will be down to the creditors lending criteria.  

Be careful of companies that say they can repair your credit file. In most cases they will charge a fee to simply tell you how to get a copy of your credit reference file and give tips on improving your credit rating.  

Usually, it won’t be possible to repair your credit file. Or, if it is possible, it’s something you may be able to do yourself without paying a fee. 

There are three credit reference agencies, Experian, Equifax and TransUnion. You can obtain a copy of your credit file free of charge from these agencies without having to go through a credit repair company.  

MoneyHelper has information about how to correct incorrect information on your credit file. They also give free tips on improving your credit score.   

Call us for free advice if you are concerned about the impact of write-offs on your credit file before speaking to any companies that promise a credit repair service.  

You can find out more about your credit file in our Credit reference agencies guide. 

If you don’t act: CCJs, enforcement and how Breathing Space helps

County court judgments (CCJs) and enforcement

It is important to take steps to deal with your debts. Our Ways to clear your debt guide explains the various debt solutions that may be suitable for you.  

If the debt you owe is enforceable, the creditor may take you to court to obtain a county court judgement (CCJ) to recover the money owed. If this happens you will get a chance to make a payment proposal that you can afford. See our Replying to a County Court claim: how to respond correctly guide for more information. 

If you maintain the payments expected by the court, then no further action can be taken against you. However, if you own a property the creditor can apply for a charging order that secures the debt against your home. See our Charging orders guide for more information. 

A county court judgement will stay on your credit for six years.

If you are unable to get or keep to an arrangement through the court, the creditor can apply for enforcement action. This can include instructing bailiffs. Or, if you’re employed, applying to deduct money from your wage. 

See our Attachment of earnings orders guide and County Court bailiff guide for more information.  

Breathing space and mental health crisis breathing space

Breathing space

If you need some time to decide how to deal with your debts, you could consider applying for breathing space.  

During breathing space creditors that have been included are not able to collect the debt for 60 days and they must also freeze interest and charges.  

We can set up breathing space for you. Call us to speak to an adviser who can check whether breathing space may be a good option for you.

Mental health breathing space

You can only apply for a mental health crisis breathing space if you are struggling with debts and receiving mental health crisis treatment.  

An approved mental health professional would need to confirm you are receiving mental health crisis treatment.  

Our Breathing space guide has more information about breathing space and mental health crisis breathing space. 

FAQs

How long until credit card debt is written off? 

There isn’t a time frame for a credit card debt to be written off. However, if you have not made a payment to the debt or acknowledged it in writing for a period of six years, the debt could be statute barred. This means if the creditor has not already obtained a county court judgement against you, they would be out of time to take court action. 

Can I get my credit card debt written off if I’m on benefits or have no income? 

It might be possible to get your debts written off if you are in receipt of benefits or have no income. However, you would usually need to show that your situation is long term, and you are unlikely to be able to afford to repay your debts in the future.   

Your creditor is also less likely to agree if you have valuable assets such as a property.  

Is debt written off when you die? 

A creditor will write off debt when someone dies if they are unable to recover the money from anyone else.  

• If the debt is in joint names with another person, the creditor can recover the money from that person.  

• If someone has acted a guarantor, the creditor may be able to recover he debt from that person.  

• If the deceased person has left an estate, the creditor may be able to recover the debt from the estate.  

Does a DRO/IVA/bankruptcy write off credit card debt? 

As DRO’s, IVA’s and bankruptcy are forms of insolvency, your credit card debt would be written off if you keep to the terms of the insolvency route you have chosen. See the Debt solutions that may lead to write off section for more information. 

Does a £1 payment or email acknowledgement restart the time limit? 

If the £1 payment or email is within the six-year limitation period, then it would restart the time limit. However, if the payment or email is after the debt has already reached the six-year limitation period, it would not restart the time limit. The debt would continue to be statute barred.  

You can find out more in our Statute barred debts: what they are and when debts become statute barred guide. 

Can bailiffs chase a written-off or statute-barred debt? 

A bailiff shouldn’t contact you regarding a debt that has been written off. You should contact the original creditor that the debt is owed to and clarify that the debt was written off and when. Provide any evidence you can that confirms that write-off was agreed by the creditor. 

If it is agreed the debt was written off, you should task the creditor to inform the bailiff to stop collecting the debt.   

The debt being statute barred means that the creditor is out of time to pursue you through the court. However, if a bailiff is collecting the debt, it usually means that the creditor has already obtained a court judgment against you.