Statute barred/Default help!

callyh26

I am in the process of going threw a DRO, But as i delve into my credit file etc i keep finding other debts to add! Im aware its now becoming very close to the 15000 limit. Looking at my file some accounts were opened in 2005/2006 I know i havent paid money bk to them in at least 5 years but without ringing the actual original creditors (they are all with debt collectors) and paying for statements etc How will i know when i last made a payment to know whether they could be classed as statute barred? There are 26 creditors that i know of so its gonna cost a bomb if i have to pay for statements from them all!! Also if an account is in default i understand this stays on your file for 6 years? Once the 6 years is up will it be erased? and the debt along with it? I have ignored these debts for 5 years now and although i wanted to put a plan in place and it seemed a DRO order was for the best im very aware of how many of these debts are only a year of being over 6 years old anyway but as i say i dont know the exact dates a last payment was made!? A few of the creditors once ive told them im going for a DRO have quite quickly passed the debt back to the original creditor!? Is this because they know there's little chance of them getting money? One has also put hold on account for 90 days ! Is it worth sending letters to them all basically saying i cant pay its very unlikely to change and will you write it off? ( Long shot i know) Can anyone give advise as to what to do? Thanks

sgtbush

you need to add every one and all your creditors, if its found out later that you have not or you go over the 15,000 limit, i think they can apply for a leave of court and get ccj,s against you.
are you sure you meet all the criteria for a DRO?

callyh26

Yes im sure i do been to CAB!! I know all this i need help with the questions i asked! Re Statue Barred and Defaults

National_Debtline

Hi Cally

If you can obtain an acknowledgement from the creditor(s) concerned that their debts are statute barred, then they can be excluded from a DRO application. Don't hold your breath though...

Alternatively, Insolvency Service guidance states that you can choose to exclude debts from the DRO if you are certain that they are statute barred.

You would do so at your own risk i.e. if, after the start of the DRO, the official receiver discovers that one or more debts are not statute barred after all, and as a result the level of qualifying debt rises above £15K, your DRO would be revoked.

So, you would need to be 100% certain that enough of your debt had gone 6 years without written acknowledgement/payment by you for the level of "valid" debt to be below that £15K mark. You might have no choice but to play the waiting game for a while longer as it stands.

Hope this helps

NDL

National_Debtline

Sorry, missed your query about defaults...

Yes - default will drop off your credit file after 6 years. However the 6 year limitations period runs not from the date where the default is recorded on your credit file, but the earliest point at which the debt could have been sued for - this may come sigificantly before the default itself.

NDL

callyh26

I know most of the debt defaulted in 2008 so although its 2 years off clearing off the file, i wondered once its gone over the 6 years is that it gone or can they still chase me for it? Im trying to decide what to do for best really I was going down the DRO route but have got very near to the limit of 15,000. From the date the DRO is place do my circumstances have to stay exactly the same for only a year from that date? As someone told me they also have to stay exactly the same for another year after the debt is effectively wiped a year down the line! Meaning i couldn't go back to work etc or change anything for 2 years :-/ As the debt is already been in default for 4 yrs and i havent paid anything since taking many of them out 5 years ago im wondering whether to just sit and wait although this means i go back to the bombardment of calls, letters chasing the debts? As it stands i have no income other than benefits and there's nothing left from them to pay in lumps. Even offering token payments i cant really afford. As there are 22 creditors and since accessing my file 2 more have been added ! Is this because accessing my credit file has alerted debt collectors etc as to my address ? I dont want to avoid my debt, or be in this situation if i can help it. I want to go back to work once my babies born and get back to having some sort of credit file but i just dont know what to do for the best! I'm worried how big an effect a DRO will have although my credit cant get worse! But i know not going for it isnt probably best as i cant pay the debt and i'll never get a rating if i pay a £1 a month to each for next 30 years!

callyh26

[QUOTE However the 6 year limitations period runs not from the date where the default is recorded on your credit file, but the earliest point at which the debt could have been sued for - this may come sigificantly before the default itself[/QUOTE]

So how could i find this info out ? Credit reports are very confusing for instance a Halifax credit card shows as satisfied yet its not a debt collector is chasing me for it! It was taken out in 2005 and would have not had anything payed from probably 2007 but defaulted in 2008. How can i find when payment's were last made?

National_Debtline

Hi again Cally

callyh26 wrote: »

I know most of the debt defaulted in 2008 so although its 2 years off clearing off the file, i wondered once its gone over the 6 years is that it gone or can they still chase me for it? Im trying to decide what to do for best really I was going down the DRO route but have got very near to the limit of 15,000.

If your debts are looking likely to exceed £15,000, then you need to consider the alternative of bankruptcy instead. The DRO limit has to be set somewhere, and by the law of averages a certain number of people will fall just the wrong side of that limit.

callyh26 wrote: »

From the date the DRO is place do my circumstances have to stay exactly the same for only a year from that date? As someone told me they also have to stay exactly the same for another year after the debt is effectively wiped a year down the line!

If your circumstances improve significantly during the 12 month DRO moratorium period - i.e. you no longer meet the initial criteria because either (a) you have acquired or inherited assets worth over £300 or in the case of a car over £1,000, (b) further pre-existing debts come to light which push the total over £15K, or (c) your level of disposable monthly income rises above £50, then yes, your DRO can be revoked.

That is not the same as saying that your circumstances must remain exactly the same for 1 year. If, for example, you return to work on a part-time basis before the end of the DRO, you will not necessarily be significantly better off - extra earnings are likely to be cancelled out by extra childcare costs and reductions in means-tested benefits.

callyh26 wrote: »

As there are 22 creditors and since accessing my file 2 more have been added ! Is this because accessing my credit file has alerted debt collectors etc as to my address ?

Yes, checking your credit file is likely to alert creditors to your current whereabouts.

callyh26 wrote: »

I'm worried how big an effect a DRO will have although my credit cant get worse!

A DRO will have a very significant effect, no different to that of bankruptcy really - but as you yourself acknowledge, your credit is likely to be very poor already and sometimes you just have to start from scratch.

National_Debtline

callyh26 wrote: »

So how could i find this info out ? Credit reports are very confusing for instance a Halifax credit card shows as satisfied yet its not a debt collector is chasing me for it! It was taken out in 2005 and would have not had anything payed from probably 2007 but defaulted in 2008. How can i find when payment's were last made?

You could make a request under the Data Protection Act (DPA) for all paperwork held by a given creditor about you. A creditor is entitled to charge up to £10 for this. You should take care however not to inadvertently acknowledge the debt in writing, as this may start the limitations "clock" running again if the debt is not quite 6 years old at that point, so you could make this request by telephone. There are a lot of threads on this forum devoted to DPA information requests.