Defaults

Stewart_78

Hi all,

I'm cracking on with my DMP and now looking to the future even if there is a long way to go. I'm hoping that in a couple years, we may be in a position to take a dividend from my company with the view to making full and finals to all my creditors (around 30%).

We also have plans on a barn which we own which is now derelict but is massive and we are thinking that one day it would make a nice house for the family. To do this we would probably need some kind of mortgage for the works.

So, the question is this. I have had default letters and I know they don't dissapear for 6 years but when is that from? Do they send new defaults every year? Is it from when you repay the debt? I'm 2 years into a 14 year DMP. Lets say I was to reach settlement with my creditors and pay them all off in December 2013, when could I expect all this stuff to fall off my file?

Miss_Lemon

If you check your credit file each default will be recorded on there and it is 6 yrs from the date that the default is registered on your credit file when it will drop off, regardless of whether you make a settlement or not I'm afraid, although a settlement may help a little. Each default is registerd only once.

Interhacker

If you pay the debt of it will turn into a "settled Default" - which is just as bad people seem to think.
And im sure im right in saying that the default starts the date its registered on your file, so 6 years from the date it says on your report.

Stewart_78

So is it 6 years from the original default? Or 6 years from when we repay it?

Put it this way. If we defaulted and then agreed a 6 year DMP which we stuck to, would the original default be invisible by the time we paid it off? Or is the settlement recorded at the time when it is paid?

fermi

6 years from the original default registered on your credit files.

Miss_Lemon

6 years from the original default.

Stewart_78

Thanks all. So, if the debt is settled on the 6th anniversary of the default, nothing shows on the file?

fermi

Nothing shows on your file after the 6th anniversary of the default, whether the debt is settled or not.

Stewart_78

So lets just say I have my current account with a bank who I have never defaulted with and we manage to settle the defaulted debts in the next few years, by which time the defaults have gone. Is there some way they can search some database or something should be apply for a mortgage with them?

Miss_Lemon

As far as I am aware as long as it's a non related institution then you should be ok.

Stewart_78

OK, thanks, that gives me some hope. I've given up counting chickens!