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6 year debt rule?

Mancunian
Mancunian Posts: 963 Forumite
Part of the Furniture 500 Posts Combo Breaker
edited 9 June 2012 at 6:28PM in Debt-free wannabe
Am I right in thinking that their is a 6 year debt rule ie. after 6 years of first incurring the debt they get wiped from you credit record?

I believe this is only the case if you dont acknowledge the debt ie. not contact the company or collection agency

If this is correct do they simply get removed by experian etc or does something particular need to be done?
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Comments

  • I believe it's automatic but i'm sure someone will be along soon to confirm. :)
    DEBT FREE AND PROUD:D
    'Better to remain silent and be thought a fool than to speak out and remove all doubt'
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The default falls off your file automatically, 6 years after the default is registered (not when the debt ocurred)
    but dont think that the debt is wiped, it is not.

    You still owe it, the only difference is that it can be chased,
    but not through the courts.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Mancunian
    Mancunian Posts: 963 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    McKneff wrote: »
    The default falls off your file automatically, but dont think that the debt is wiped, it is not.

    You still owe it, the only difference is that it can be chased
    but not through the courts.

    thanks, not heard about the still being able to chase it.

    how would a default be registered? could the company delay that?

    some debts get sold on once or more dont they? do you know if that resets the date of the debt to the date the debt was passed from company to company.
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  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    No, it wont reset the date on selling on.

    It is 6 years from the date of the original default. You can only be defaulted once for the same debt.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • jon1965
    jon1965 Posts: 329 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    The rules are, or so I am told, 6 years and 1 month after the last payment was due most debts become statute barred so long as you have not made a payment or acknowledged the debt.
    For SB it desn't actually matter when the default was registered
    6 years after the default is registered it falls off your credit file
    CCJ's are never officially SB
    This is why the advice given on some forums to maintain token payments of say £1 per month leads to the debt never being SB

    SB doesnt mean the debt is wiped, it just means that it can no longer take any enforcement action. Once a company has been told a debt is SB'd they should stop chasing you.
    Hope that helps
  • jon1965
    jon1965 Posts: 329 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    McKneff wrote: »
    No, it wont reset the date on selling on.

    It is 6 years from the date of the original default. You can only be defaulted once for the same debt.

    McKneff, you can receive as many DN's as they like, if you keep putting it right. However once the default is registered the date can not be changed.
  • Mancunian
    Mancunian Posts: 963 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    sorry guys, whats SB debt? just googled but not clear
    PLAY GOOD!

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  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    Mancunian wrote: »
    Am I right in thinking that their is a 6 year debt rule ie. after 6 years of first incurring the debt they get wiped from you credit record?

    Defaulted accounts are removed from your credit reports 6 years from the date the default is put on.

    If the account hasn't been defaulted, it is 6 years from when the account is settled.
    Mancunian wrote: »
    I believe this is only the case if you dont acknowledge the debt ie. not contact the company or collection agency

    No. Acknowledging the debt or contacting the creditor has no affect on how long it stays on your credit report.
    Mancunian wrote: »
    If this is correct do they simply get removed by experian etc or does something particular need to be done?

    They are removed by Experian etc automatically 6 years after the default (or settlement if not defaulted).
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    edited 9 June 2012 at 8:12PM
    Mancunian wrote: »
    sorry guys, whats SB debt? just googled but not clear

    Statute barred.

    i.e. how when a credit is barred from legal action on a debt because too much time has passed.

    Has nothing at all to do with how long debts/defaults stay on your credit reports. So nothing really to do with your initial question.

    See: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    jon1965 wrote: »
    The rules are, or so I am told, 6 years and 1 month after the last payment was due most debts become statute barred so long as you have not made a payment or acknowledged the debt.
    For SB it desn't actually matter when the default was registered
    6 years after the default is registered it falls off your credit file
    CCJ's are never officially SB
    This is why the advice given on some forums to maintain token payments of say £1 per month leads to the debt never being SB

    SB doesnt mean the debt is wiped, it just means that it can no longer take any enforcement action. Once a company has been told a debt is SB'd they should stop chasing you.
    Hope that helps


    See the BOLD, this is incorrect, as Ferni and I said, it it 6 years and (maybe) 1 month since the default was registered
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
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