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Can someone tell me if there is any limitations in time for a legal aid debt? A friend of mine had legal aid about ten years ago and the costs were something in the region of £30k. Her husbands business went bust( it was a partnership not a Ltd Co.) and their business property was seized, negative equity loads of loans on second charge, wife didn't know much about the technicalities and just signed the papers when hubby asked her to, you know the score! Marriage broke up - not divorced, family house was sold and she got a chunk which she put into trust via solicitors so nobody can touch it but there is this lingering worry about the Legal Aid bill of £30k. Hubby went bankrupt she didn't and now she's frightened to do anything for fear someone, both the second charge holders on her old property and Legal Aid will come after anything she ever owns again. Poor darling is petrified to do anything. Anyway, are legal Aid debts statue barred and if so after how long?

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When you say your friend received a share of the proceeds on sale of the former matrimonial home, if it was more than £3,000 then her solicitors slipped up in paying it to her as it should have gone to the Legal Services Commission to repay the Legal Aid. You can keep the first £3k of any money awarded by the Court as a settlement plus anything left after the legal costs have been paid back. Usually though, where the money is needed to buy another property because there are minor children, the Legal Services Commission will agree to accept a charge on the property rather than take the money. Its up to the solicitor with the legal aid certificate to register the charge on behalf of the LSC. If they didn't do so then your friend has no need to be concerned.

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I think i remember reading somewhere on this forum that Statute Barred Debts for property are for debts 10years +.

 

Have you tried searching for 'Statute Barred' in the forum?

 

Neil.

 

i think they are 12 years. check out the caselaw Bristol & West PLC vs Bartlett [2002]

 

also if the wife signed the papers without knowing what they were, you may have a claim for "undue inluence" right there!

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