Legal Question in Credit and Debt Law in United Kingdom

responsibility for loan taken out during mental health difficulties

I need some advice about a personal loan debt which has now been passed to debt collection agency. I was diagnosed with depression in Sept 2001 and signed off work indefinately. In January 2002, i got a �10k loan from my bank to pay off some debts. During the early stages of depression i split from my wife, lost my job and had to live with my parents, all of which culminated in me trying to take my life. I didnt succeed and nobody knew about it. Time went on, i ran into money difficulties and couldnt pay back the loan. Anyway, the loan was passed to the debt collectors who are taking �20 a month as payment whilst im still not working ( i am still on incapacity benefit due to the depression) I have seen a Cognitive behavioural therapist, psychologist, psychiatrist and doctor during the last 5 years because of the depression and a second attempt to take my life and recieve constant medication. Amongst other things my memory is not the best and i am forgetful. My question is this - can i be held responsible for this debt seeing as i was in no fit state of mind at the time of signing and going through such a traumatic period which affected my mental health and judgement?


Asked on 4/13/06, 9:31 am

1 Answer from Attorneys
Andrew Dutton Legal -Zone

Re: responsibility for loan taken out during mental health difficulties

It is possible that if you are able to establish that your illness resulted in EU not having the necessary mental capacity to enter into the loan agreement in January 2002, that this agreement could be declared invalid. Were this to happen the position would be that both parties would be required to return to the position they were in before you entered into the agreement. The consequence of this is that the money borrowed would have to be repaid. There is unfortunately no way in which the loan agreement can be cancelled and you allow ought to keep the money you borrowed.

Andrew Dutton

www.legal-zone.co.uk

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Answered on 4/18/06, 1:01 pm


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