Default procedure and what to do next...

kittylorelli

Hi, any help at all on the subject would be great.

Not to bore you with the fine details (unless you ask) I moved into a flat with someone who could not pay...anything, they left abruptly and I had to beg to be released from the lease. Most of the bills where in my name and due to my quick departure I incurred some costs I did not anticipate (the loss of a £1400 deposit for example).

One of the utilities I had to discontinue was Virgin Media. They told me I had to pay £180 there and then to stop the service. I didn't have the cash, so began the ridiculousness that was me paying a utility bill for a house I no longer lived in. This resumed for some time until I lost my job and for whatever reason the cost of my bill went up. I did miss payments and received a letter from the debt collectors - BPO.

I now have BPO asking for money to the tune of £160 and a nice default on my credit file. I have been paying BPO, although cannot pay in full - after spending time unemployed I had to settle for part time employment because I could not survive on benefits.

My question(s) are;
If I am paying BPO off - I understand a default will blight my credit score for 7 years - will the account with Virgin shut down after I pay the £160 or will i need to ask them - can it be closed sooner as my debt is now with BPO?
Will that repayment in full, albeit staggered payments made over a period of time, show as "account settled" on my credit file?
Is it true a lender might be lenient if the account it settled and closed over 6 months ago?

I was hoping to get a mortgage in around a year, however between the default itself and the fact that the Virgin Media account is in my previous address (one I am no longer on the electoral role for). this is becoming more and more of a pipe dream anyone with any advice or a suggestion of where you think I could go from here, it would be a great help as I find the whole situation soul destroying

Thank you for reading.

CKhalvashi

Mortgage with default = no chance, although speak to a broker, and take printouts of your credit files. I fail to understand how you'll pay for a mortgage deposit, if you have no money now.

Mortgage lenders are rarely sympathetic at the best of times. They're handing over a large amount of money, and need to ensure they're getting it back.

CK

happy_bunny_2

It will stay on your file 6 years from default date. Paid or not.

If you pay it all, even over a period of time, it will show as satisfied or settled, can't remember which. But it means paid in full. If you agree to pay less in full and final settlement, likely be marked as partially settled. Which indicates you paid less than full amount.

Likely your credit file is linked to previous address. Mortgages will likely ask for last 6 years addresses.

Is the default date within a few months of when you stopped paying?

Going to make getting a mortgage hard until paid and 3 or 4 years old from what I read on here.

TherealMandM

When VM increased there prices you could of terminated contract with no penalties