Where do I start? 10+ year old debt

InaTizzy_2

Hi all,

I'll cut a very long and tedious story short and get to the point. I have outstanding debts that I ran away from about 7 years ago, I haven't heard a peep from my creditors or any debt collection agencies in at least 6-7 years but as far as I know that might be just because they haven't caught up with me yet? I've stayed put in places long enough to be found though I'm sure, I have a bank account with my current address etc..

The debts where for loans and credit cards for the most part and I think the total debt runs up to approximately £10k, there or thereabouts give or take a little either way.

In a nutshell, I realise my credit rating is probably shot to pieces.. I don't even know if I have any CCJ's against me? That's the level to which I ignored the debt. I don't know what the situation is at all.

Where would be the best place to start? I imagine contacting the creditors etc. and asking them to detail amounts owed? Only problem there is that I have no paperwork relating to the debts, I'm certain I binned it all one day in a panic (yes I'm that stupid)

What would be the cleanest break for me to take? bankruptcy? is there any other options besides bankruptcy that would get me out of this hell and let me start living my life again?

It's threatened my relationship with my partner, to the point where she now doesn't trust me in the slightest bit and is beginning to wonder whether she wants to live her life like that, wondering if I'm telling the truth all the time. I feel demonised for mistakes I made when I was in my youth but I can't say I blame her with regards to not trusting me (ESPECIALLY since I just borrowed £1800 from her parents to pay off some ridiculous pay day loans that I took out!!). So don't know what the hell to do with myself now beyond starting to look for the cleanest solution, would rather get the ball rolling now whilst I'm out of the house for the night (for work)

DarkConvict

Step one is to get your credit reports, info only lasts 6 years on there so any initial damage may already have fallen off. Get either the free online trials and remember to cancel, or buy the £2 statutory reports. Experiana dn Equilifax are the main 2, callcredit is used a little bit, but get all 3. - http://www.ico.gov.uk/for_the_public/topic_specific_guides/credit.aspx

If creditors have not taken out a CCJ against the debt, then after 6 years of no written acknowledgement or payment, the debt is statute barred in england/wales, (5 years in scotland). If the debts are barred they cannot get a CCJ, so payment is optional. If you decide not to pay and you tell them so, they are not allowed to ask for payment any more, template to send to creditors asking for you to pay SB debts - https://forums.moneysavingexpert.com/discussion/comment/11571227#Comment_11571227

If creditors have taken out CCJs, and they find you then you will be expected to pay them unless you dispute the amount on the CCJ. Failure to pay will mean bailiffs, and as the CCJs are old they can use bailiffs immediately to get in touch. Bailiffs prefer money over taking goods, so they should be able to arrange payment in installments for the CCJ, just ensure you keep bailiffs out of the house and the car parked away from the house so it cannot be taken.

If after getting your credit file, you get lots of debt letters you do not understand, send the prove it letter out to them - http://forums.moneysavingexpert.com/showpost.html?p=11570893&postcount=2

gilligansyle

First step would be to get your credit reports and see what they show, there are links for how to get them for free. If these debts are as old as you say, they may no longer show anywhere, and therefore won't affect your ability to get credit. This still doesn't mean that you WILL be able to get credit though.



***EDIT*** cross posted with the far better response from DC

Watalie

InaTizzy wrote: »

Hi all,

I'll cut a very long and tedious story short and get to the point. I have outstanding debts that I ran away from about 7 years ago, I haven't heard a peep from my creditors or any debt collection agencies in at least 6-7 years but as far as I know that might be just because they haven't caught up with me yet? I've stayed put in places long enough to be found though I'm sure, I have a bank account with my current address etc..

The debts where for loans and credit cards for the most part and I think the total debt runs up to approximately £10k, there or thereabouts give or take a little either way.

In a nutshell, I realise my credit rating is probably shot to pieces.. I don't even know if I have any CCJ's against me? That's the level to which I ignored the debt. I don't know what the situation is at all.

Where would be the best place to start? I imagine contacting the creditors etc. and asking them to detail amounts owed? Only problem there is that I have no paperwork relating to the debts, I'm certain I binned it all one day in a panic (yes I'm that stupid)

What would be the cleanest break for me to take? bankruptcy? is there any other options besides bankruptcy that would get me out of this hell and let me start living my life again?

It's threatened my relationship with my partner, to the point where she now doesn't trust me in the slightest bit and is beginning to wonder whether she wants to live her life like that, wondering if I'm telling the truth all the time. I feel demonised for mistakes I made when I was in my youth but I can't say I blame her with regards to not trusting me (ESPECIALLY since I just borrowed £1800 from her parents to pay off some ridiculous pay day loans that I took out!!). So don't know what the hell to do with myself now beyond starting to look for the cleanest solution, would rather get the ball rolling now whilst I'm out of the house for the night (for work)

You need to see your credit report... thats the best place to start, it will have all the details you need to see and trust me, once you have seen it, the relief you will feel will be immense - you will know where you stand. It has all the details of Creditors etc so you can contact them if need be.

Get your partner involved in the process, she will trust you again once she sees that you are making an effort to sort yourself out.

Good Luck!!

Watalie

Oops - much better responses than mine! Lots of good advice.

RAS

Check the Registry Trust to see if there are any CCJs against you. Unless those exist, and the creditor gets round to enforcing them within 6 years of the court date, most of this debt is out of date (Statute Barred) and there is no legal obligation for you to pay.

If you have debts that are with DCas and they are not yet statute barred, my personal view is that you should think carefully about paying them and maybe wait for them to becopme so and then make donations to a charity instead of paying £1000 to someone who paid a mere £50 to buy your debt.

InaTizzy_2

Thanks ladies and gents, I shall have a nosey at my credit reports. Only issue is that I want to alert any debt collection agencies to my current address, is there any way I can avoid this? The long story short there is that my partner has lived in her house for 10 years and never had any bad credit related to the house, so I would rather use another address as my 'home' address if that makes sense.

Is there any way to avoid this?

Thanks again for the advice, it's a great starter!!

Watalie wrote: »

Oops - much better responses than mine! Lots of good advice.

I wouldn't say that, getting my partner involved is a cracking idea! If she'll listen!

RAS

InaTizzy

damaged credit relates to people, it is not attached to property, so using her address would not affect her credit rating.

Do you have any joint accounts at all? That could affect her.

And by the way, your credit rating will probably be crap because it sounds like you are not on the electoral roll and it will take a a couple years to recover from that omission even if you register now.

DarkConvict

No, you need your current address to get your credit file. A credit file is really just a big system of links brought together to make a file.

If you fail to supply address then you may fail the ID check to see your file to begin with.
Also you file is made of your name and address matching. So if you do not supply the old addresses then you do not see the old records. However supplying names and address will create links, some of these may have been created already with registering to vote, change of address with existing accounts, applying for jobs or any financial products. It really depends on the info provided.

If you lived at 1, MSE Road, MS12 4RT, 3 addresses later you lived at 66 Western Road, ST6 5TE. The addresses may well not be matched, money owed at the first address is not linked to anything so cannot trace it to the latest address. However supplying the previous addresses may link up one old address to a new address, to a newer address and so on until it hits the current address.

Wanting to live up to your debts and see what is what is the right thing to do, but there are obviously some process that happen that you have no control over.

P.s. Addresses are not black listed for credit, the name and address must match.
If however you share joint accounts with people, your reports are linked. So when they search one persons report they can search the others as well.

Watalie

InaTizzy wrote: »

I wouldn't say that, getting my partner involved is a cracking idea! If she'll listen!

Ask her!!

This is only my experience... after facing up to my own debts and sorting myself out, I tackled my partner at the weekend about his and after much rowing etc... we finally took the step to look at his figures. I did tell him that I would not judge him. This was the same way I expected him not to judge me when I faced up to mine...

InaTizzy_2

Watalie wrote: »

Ask her!!

This is only my experience... after facing up to my own debts and sorting myself out, I tackled my partner at the weekend about his and after much rowing etc... we finally took the step to look at his figures. I did tell him that I would not judge him. This was the same way I expected him not to judge me when I faced up to mine...

That's my plan! I want to do as much as I can tonight, to try and understand as much as I can before I get home tomorrow night so I can go and give her the bare facts and show her that I want to make amends for making the mistakes I did.

RAS wrote: »

InaTizzy

damaged credit relates to people, it is not attached to property, so using her address would not affect her credit rating.

Do you have any joint accounts at all? That could affect her.

And by the way, your credit rating will probably be crap because it sounds like you are not on the electoral roll and it will take a a couple years to recover from that omission even if you register now.

Nope, no joint accounts but I think she would want one to keep an eye on the money, make sure I'm not doing anything stupid (although I'm adamant I've learnt my lesson!)

Again, can't blame her but good to know that it damages the name, not the property. That must be quite a common misconception as I've heard loads of people worry about the credit related to a property!

Also, re: the electoral roll, yes I've been off it for a while, only just got back on it when I moved in with my partner last year so only been on it for just under a year, if that? It was heaven being able to vote again... ! Something I'd not been able to do for a long time because I was running and running.

DarkConvict wrote: »

Wanting to live up to your debts and see what is what is the right thing to do, but there are obviously some process that happen that you have no control over.

Yea, I didn't think I'd be able to get around that