Default query

andy164

Hi all, I'm after a bit of information regarding the defaults on credit file! I've been in DMP for roughly 3 years, my outstanding debt currently stands at 28k, my parents are will to gift me 14k on the condition of a full an final offer been accepted by my 5 creditors. My question been if the offers get accepted will my credit report be changed from default to partial an that will run for 6 yrs or will it run for the remaining 3 years?? Hope this makes some kind of sense!
TIA
Andy

sourcrates

Hi,
From the date each default was registered, they will stay on your file for six years, regardless.
If you do F & F with your creditors, they will be flagged as partially settled, until the original six year period has expired.

andy164

Many thanks Sourcrates, I thought it was from original date of default but my DMP providers told me if my F&F offer gets accepted it will be on file for 6 years from date of offer been accepted, so was bit confused, maybe ought to look at changing provider if they off to tell me misleading info!!

andy164

Also how on earth did u manage to get your debt cleared? How long did that take? Did u clear the full amount? Sorry for been nosey!

fermi

andy164 wrote: »

my DMP providers told me if my F&F offer gets accepted it will be on file for 6 years from date of offer been accepted

That would be true for accounts that have never had a default recorded. They stay for 6 years from the settlement date.

A default on your credit file draws a line in the sand though, and as said if that is there then accounts always drop off 6 years from that default date, irrespective of when they are satisfied.

sourcrates

andy164 wrote: »

Also how on earth did u manage to get your debt cleared? How long did that take? Did u clear the full amount? Sorry for been nosey!

That's ok, 6 year individual voluntary arrangement (IVA), wasn't too bad, although had major disruption to income during year 4, in the end my creditors accepted payments to date as full and final settlement.
Incredibly one creditor failed to claim there share, was a ten grand debt :eek: !!
Total owed was £54,000, total repaid was £16,666, total fees taken by IP £9000, creditors received £7,666, around 15p in the pound.
Although I didn't fair too badly, knowing what I know now, I would have opted for bankruptcy instead, as don't own a property, or have many assets, would all of been over in a year, ah well, hindsight is a wonderful thing !!:o