Any need to pay a defaulted account?

ey_137

Hello there,

Please don't shoot me down thinking I'm one of those people that got into the debt and doesn't want to take the responsibility or pay it back! I have a six defaults on my account from a previous marriage and financial problems I was defaulted in 2007 for 5 of them and 1 in 2009.

I'm currently with pay plan and making regular payments to all my creditors and have been from the start!

Now 5 of the defaults will drop off my credit report in 2013 so is there any real point to paying them off? What would happen if there not settled before they drop off??

Thanks for your comments

Simon:money:

MusicalLawyer

Even if they drop off your file, you are still liable for them and creditors can still chase you for them.
You can even end up with a County Court Judgement.

Best thing is to just keep paying them as you are to settle them.

MusicalLawyer

I think you may have just got a default confused with statute barred debts, which means that you can't be chased for a debt if you haven't made a payment on a debt, or acknowledged the debt in writing for six years.

ey_137

No I think I understand statute barred debts I have been paying them for years so that doesn't stand for me, what I mean is the defaults have to be removed from your credit report after 6 years wether there paid or not so how does it stand and what happens next afterwards?

Stinkyfeet

ey_137 wrote: »

Hello there,

Please don't shoot me down thinking I'm one of those people that got into the debt and doesn't want to take the responsibility or pay it back! I have a six defaults on my account from a previous marriage and financial problems I was defaulted in 2007 for 5 of them and 1 in 2009.

I'm currently with pay plan and making regular payments to all my creditors and have been from the start!

Now 5 of the defaults will drop off my credit report in 2013 so is there any real point to paying them off? What would happen if there not settled before they drop off??

Thanks for your comments

Simon:money:

As Kelly Said, Statue barred applies to debts you have not acknowledged or made a payment to for a period of 6 years or more.
As you are paying through a arrangement, stopping paying them will basically make the last payment recent (whenever you made last payment) so for example if your last payment was January 2012 to arrangement, they would not become statue barred till January 2018.
In the meantime, you would possibly be chased by debt collectors, your file would be hammered for fair few years and you could get a CCJ which if hit your credit file in 3 years (2015) would then harm your credit file till 2021.

ON another note, DMP's can on occasions mean you paying and balances not going down as creditors dont have to legally minimise interest charges, so for a long time permanent that supports you, it may pay to look into a IVA or BR.

ey_137

Many thanks for your reply, I think I have done well and can now see light at the end of the very misserable tunnel considering the total debt was around £35000 and now stands at about £9500.

I'm tempted if possible to get a loan and approach the conpanies witj full and final settlements, I know it's not totally right as it was my debt but my wife and I need to move and the quicker i can get my credit file back in order (although creditexpert still reckon I've got a score 882 which is good) The better. Then hopefully we can move on.

pure_dead_dopey

or you could look at wether these debts are enforceable...................

perfectly legal.................

endora

Stinkyfeet wrote: »

ON another note, DMP's can on occasions mean you paying and balances not going down as creditors dont have to legally minimise interest charges, so for a long time permanent that supports you, it may pay to look into a IVA or BR.

Or, before going that far, it may pay to spend £1 + registered postage and send a CCA request to each creditor and see what they come up with, with your debts being so old, some may not find the agreements.

Despite rumours to the contrary, the above method still works and once you have defaults on your file it's worth giving it a try. You can carry on paying till you get your replies, they have 12+2 days to respond and before anyone says anything, this is perfectly legal, all based on the Consumer Credit Act 1974.

EssexHebridean

pure_dead_dopey wrote: »

or you could look at wether these debts are enforceable...................

perfectly legal.................

Legal it may be, but the OP's opening statement explains that he isn't looking to not pay debts he knows he has liability for....even if there is a legal way of not having to pay them, for many folk this would not sit comfortably on their conscience, and a conscience will twinge for a lot longer than the knock on effects of CCJ's etc.

Full marks OP for looking to settle these responsibly - normally the recommendation would be to avoid consolidation loans but if these debts weren't originally created to fund a "buy now pay later" lifestyle, as it sounds as though they weren't, that might be an option for you. Do look to get it shifted as quickly as possible though, and don't be tempted down the line of borrowing more than you actually need.....consolidation companies will try to persuade you down this line!

Good luck

ey_137

Many thanks for all you advice, I did approach the companies a few years back to see if the loans were enforceable which most produced a copy of the agreement apart from the ones sold onto direct legal & general.

To be honest i didn't really have a clue what I was looking at and it kinda didn't sit right with me so I left it at that.

I will possibly look at consolidation aspects as the final bill is in reach, and no I definetly won't be borrowing more than I need I've worked very hard to get my credit file back to a good rating just want rid of the defaults as I feel I've let my wife down and holdin us both back.

Stinkyfeet

ey_137 wrote: »

Many thanks for your reply, I think I have done well and can now see light at the end of the very misserable tunnel considering the total debt was around £35000 and now stands at about £9500.

I'm tempted if possible to get a loan and approach the conpanies witj full and final settlements, I know it's not totally right as it was my debt but my wife and I need to move and the quicker i can get my credit file back in order (although creditexpert still reckon I've got a score 882 which is good) The better. Then hopefully we can move on.

Just for the note ey_137, have I said anything within my replies that have belittled you in any shape or form?