debt write-off

custardcream

I ran a credit check on myself via creditexpert to make sure that I'd got all my debts down before I took the final step into an IVA/Bankruptcy. However, it shows that two seperate debts have been 'settled' (I haven't had any contact with either company for about 2 yrs). Amounts to over £8k. I've moved twice since then and had only been paying a token £1 occasionally in the year prior to that.

Is it settled because the debt has been sold and I owe the money to someone else and if so wouldn't they show up under the new owner's name? I know there are different agencies so do I need to do checks with other companies?? Or has it just been written off?? Need to know my total debt but don't obviously want to call the companies in question to ask for them to clarify. Would be the diffence between an IVA and Bankruptcy though so important.

And can someone clarify the six year write off rule??? I understand I think that if you don't pay or have any contact with a company regarding a debt for six years they can't chase you unless a court says so BUT if they are still writing letters to you is that counted as contact even if you haven't acknowledged them in any way?

A significant proportion of my debt is bank charges and I sort of want to apply to have them reimbursed but that would obviously count as 'contact' and I've half a mind just to wait another few years if it means the debt would be written off - but also need an end to all my debt problems.

It's all a bit confusing so if anyone has any advice it would be much appreciated!

fermi

You are right, the debts have probably been sold on.

What should happen is that the buyer takes over the record with the credit reference agencies. But sometimes it doesn't happen for some reason and you end up with what you have.

Defaulted accounts should only stay on record for six years from the original default date, even if they are sold on.

As far as debts being "statute barred" after 6 years, it is acknowledgement by YOU that counts.

That can be by YOU acknowledging the debt in writing, or by making a payment.

A creditor writing to you DOES NOT count, and does not reset the clock on the 6 years.

See: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

custardcream

Thanks for responding. Although I can't say I understand about the debt being 'settled'. If it has been bought has it been forgotten about? If so can they suddenly remember? It seems ridiculous that I can be so confused as to how much debt I actually have...

plumber2009

I have 4 defaulted accounts. TOTAL £47,000 so i will tell you my experience.

When a debt is sold by a creditor, the debt remains on your credit file under the lenders name and the balance is updated reguarly to reflect any payments made.

I have a debt with a debt collection agency relating to HSBC. This account is still active on my credit file under HSBC'S NAME. But all payments are made to the collection agency. Once the defaulted account balance is settled, the credit file will be marked down as SATISFIED. After 6 years from Default Date, the debt will be removed from your credit file wether repaid in full/or not.