Outstanding Debt...M.I.A???!

fermi

omgl wrote: »

It has only been about 2 years since default, so when 6 years arrives and say if my situation doesnt change and no payment plan arranged, the debt will drop off my credit report? Thsi would be too good to be true !!!

Yes.

omgl wrote: »

After the 6 years, can the lender do anything for the debt to reappear again on my credit report?

Only go for a CCJ.

omgl wrote: »

Also, what if I defaulted 2 years ago, and the lender now decides to suddently go for a CCJ, does the 6 years start from the original default date of 2years ago, or from the CCJ

A default and CCJ are recorded separately.

The default would still drop off 6 years after it was first registered. A CCJ drops off your report 6 years after the judgement date.

omgl wrote: »

If this is all the case, then why would I bankrupt myself, I can just wait 6 years and I can then get credit anyway? Would this be correct?

Sort of. If you were asked on any application whether you had previously been bankrupt, then you would have to be truthful. It would also take time to build up a decent credit history.

omgl

Hi Fermi, thanks for your reply :rotfl:

Is there a time limit the lender has to go for CCJ?

I suppose the positive thing about a bankruptcy is that lender cant go for CCJ afterwards, so someone hasnt wasted 6 years for defaults to drop off, and then suddenly a CCJ would appear, and then I would have to wait another 6 years for it to drop off the Credit Report. Plus, if its more than 2 lenders, it could go on forever.... especially if there is no time limit.

Is there a life after bankruptcy though? Surely, on most applications it will ask whether you been bankrupt, and who would lend then?

Thanks
omgl

fermi

The only time limit on going for a CCJ is if there has been a gap of 6 years during which you have not made a payment to the debt or acknowledged it in writing.

Oddly, a lot of standard credit applications do not ask about past bankruptcies. Mortgage applications nearly always do though.

There is a whole board here on MSE about bankruptcy.

Click: ---> Bankruptcy & Living With It

omgl

Hi fermi, thanks so much... you have given me so much to think about now.....
so just to clarify. I think I read something in about the limitations act stating acknowledging the debt, but didnt read it thoroughly. So...... to acknowledge, I have to write to the lender saying that I acknowledge the debt and that my situation doesnt allow me to pay anything towards the debt......... once I acknowledge and then for six years after the acknowledgement if I dont pay anything, and they dont issue CCJ on me, they then cant do it after six years...... would this be what you are saying?
Thanks
omgl

fermi

There is a factsheet in this link that can probably explain it better than I can.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

omgl

Hi Fermi
Thanks, I have found this really helpfull......
I will also check out the bankruptcy thread
Cheers
Omgl