Waht happens to defaulted debt when it falls off your credit file

baldwin1976_01

Hi

I currently have debts of about £11k all dating from being a student, in 2008 and 2009 I occured numerous defaults and several CCJ's must of which will be paid off by 2015. The ccj's and defaults will fall off 2014 and 2015.

If anything remains unpaid however after this time -what happens? Can I finally think about a mortgage even though some debt is outstanding but not showing on my credit reports? Could I consolidate any remaining debt?

Many thanks - id appreciate your advice I'm 37 and wandering whether to do an IVA

Tixy

Once a default reaches 6 years since regsitered the whole record of the credit account, and the default drops off your file.
Any new potential lender will not be able to see that the default existed.
Lenders make a lending decision based on what is on your credit file on the day the search it.

You could think about a mortgage - but you'd still need to declare any outstanding debts on a mortgage application even if they did not appear on your credit file at that point.

Have you had some advice from one of the debt advice charities about an IVA?
You mention that most of your debt will be paid in the next couple of years, based on that it doesn't sound likely that an IVA would be best for you.

baldwin1976_01

Thank you for this advice. I am going to the CAB this week.

Baldwin1976