What happens if your dmp lasts longer than your defaults?

lookingforthelight

Hi,

If I am on a DMP for a very long time, what happens to the defaults on my credit file after they have been there for 6 years?

Im guessing that the default and debt drops off. Im then left with still making payments becuse the creditor can still, in theory, take court action.

Is there any way the creditor can put the debt and/or default back onto my credit file?

Thanks

rdchick

I believe once a default has been issued to a debt that's it. They can't default it again. I would just pay it til the end and close the account. Just because it's not on your file doesn't mean the debt itself disappears xxx

Tixy

After 6years the only way they could affect your file again would be in the did take court action and you ended up with a CCJ - obviously hopefully that won't happen if you keep up with payments but its a possibility in theory.

thechippy

Tix,

What if you have a ccj, pay it for 6 years until it drops off your file and then stop the monthly payments?

Would they have to litigate all over again on the balance to re-enforce?

Tixy

If you stop paying your CCJ before its all paid off then they could apply to court to take the usual enforcement action, bailiffs, attachment of earnings, charging order etc - depending on the amount owed etc. They don't go through the whole process again to get permission to enforce.

It wouldn't appear back on your credit file though.

thechippy

Ta, interesting.