Old credit card debt

philb82

Hello everyone, I am new to the forum and I need some advice from you guys


I took out a credit card with the Nationwide a few years ago, it must be 8 or 9 years. Anyway I got into some difficulties paying it back and it ended up as a CCJ and a charging order was put onto my house back in 04/04/08. Now I haven't heard anything from the Nationwide regarding this debt for a long time, as far I can remember not since the CO was obtained. I've been reading about statue barred debts. The thing is I know I owe this debt but I want to know would it be best to get it paid off? My wife and I would like to move in about 5 years and we have 2 other CCJ's that we are making regular payments to clear them. However as my credit card debt is a CO and although the debt doesn't appear on my latest credit report (a few weeks ago I ordered it from Experian) would it cause problems for when we come to sell the house? Would it be best for me to contact the Nationwide and make offer of payment to get this debt cleared and therefore have the CO removed from the house? What's your advice guys? This statue barred thing has confused me a little.


Thanks


Phil

National_Debtline

Hello there,

Sadly, this debt cannot become statute barred - as this is all to do with the bringing of legal action. In your case this has already happened. Now that there is a charging order, the creditor *may* be able to get their money when the house is sold. If the debt is in your sole name, and the property is jointly owned, there is no automatic requirement to pay the creditor when you sell the house. Some coneyancing solicitors may try and argue otherwise, but it's not the case.

You may wish to try and clear the debt, once done the charge can be removed. It is highly unlikely that Nationwide will try to force the sale, this is incredibly rare.

We've a useful fact sheet covering charging orders here.

Best wishes,

David @ National Debtline.

philb82

Hello


Thanks for your reply and making things a lot clearer for me


The debt is just in my name and the house is jointly owned with my wife. So basically if we sell the house my debt can become an unsecured loan? However the only problem is the CCJ, which would need to be satisfied before my wife and I have a better chance of getting another mortgage. Therefore I will contact Nationwide and get this debt paid off as you suggested. Then the CO will be removed and the CCJ satisfied :j. In your opinion is it always best to get a certificate of satisfaction from the court after paying off CCJ's and charging orders?


Thanks again.


Phil

Lensman_2

I would check your other credit files (Equifax and Call Credit) to make sure. This CCJ should be gone from all of them.

The other ones (you said you had 2 more) should drop off after 6 years too.

So, by the time you start looking in 5 years or so you should be clear (or not far off).

philb82

Lensman wrote: »

I would check your other credit files (Equifax and Call Credit) to make sure. This CCJ should be gone from all of them.

The other ones (you said you had 2 more) should drop off after 6 years too.

So, by the time you start looking in 5 years or so you should be clear (or not far off).

Hello

I have a recent copy of my Experian and Equifax credit report and none of the 3 CCJ's appear on my report. One of them is a joint CCJ and that isn't on my wifes either. I'll have to check Call Credit too. I've worked out payments and the the highest debt will take about 4 years to pay off. So if they have dropped off our reports would a mortgage lender not see them either at the moment? We intend to pay them off regardless. Also when they are paid off will they reappear but as satisfied and remain on my report for a further 6 years?

Sorry for all the questions, i like to know the facts!

Phil

Lensman_2

No, a potential mortgage lender will not see them if they are not on your credit file.

And no, it will not pop back up for any reason. It is not allowed to.

philb82

Lensman wrote: »

No, a potential mortgage lender will not see them if they are not on your credit file.

And no, it will not pop back up for any reason. It is not allowed to.

Oh right. So even if they are still outstanding but not visible on our report, would a lender be likely to approve us? I thought if a CCJ is outstanding getting credit or mortgage would be very difficult.

Phil

Lensman_2

You might have outstanding debts. And you might be asked to declare them in a mortgage application. (If so, you must be honest).

But as far as your credit history file goes, they will not be visible after 6 years.

philb82

Lensman wrote: »

You might have outstanding debts. And you might be asked to declare them in a mortgage application. (If so, you must be honest).

But as far as your credit history file goes, they will not be visible after 6 years.

Thanks for your help and advice.

As well as a CO we also have a secured loan on our house. The house would be in negative equity at the moment. So it would be best for us to hang around for the next 4/5 years and get these debts cleared!

Phil

philb82

Just another couple of questions if i may

Although CCJ's fall off your credit file after 6 years, will they remain on the land registry till they are paid off? So after a CCJ is paid off is it best to get a copy of the land registry to make sure its marked as satisfied?

Also do secured loans appear on the registry (not a CCJ, all payments up to date)?

Phil