I remember some similar questions on here and elsewhere but there are no definitive answers yet.

There are plenty of companies offering to challenge credit agreements. Some of them are pretty shady foreign companies with a an office in the UK. Most of them charge a fee and sometimes the fees are almost big as the debt write off. The process can cause just as many problems with your credit file as insolvency. So do your own research and make sure you know who you are dealing with.

I know all about debt. Debt is where you do owe the money, and you can't afford to pay it back. I'm on firm ground there.

I'm less sure what you do when you don't believe you owe the money...

You can challenge a debt if for example you can't remember signing a credit credit agreement. You can write to the creditor asking them to supply you with a copy of the credit agreement. If they can't prove you owe them money then in theory you wouldn't have to repay the debt.

Its not quite that simple though, if you have been making payments on the debt - in effect you have admitted to the debt. If I was a creditor I'd think that was grounds enough for a county court judgement.

The court cases are on hold right now (June 2009) awaiting the outcome of test cases. So we're waiting to see what happens.

So there's no definite answer. Its down to you really. It all depends whether you think you should repay money that you have borrowed.

I hope someone else can give you a better answer. I'm off to do some research and if you want to know what I find out, in a few days click on my name and email me at Debt Advice Foundation.