Trying to understand what will happen

serious_debt

New to site so hello. As per my user name I have serious debt. I once earned alot and spent alot. Built up an amazing credit rating got multiple credit cards and lots of credit. Some cards north of £50,000 Any way I got seriously ill, my wife divorced me, ran off with my car and some cards. To short the story I now only earn about £20k and have £250K debt on cards and other unsecured loans, and a ccj for the car of £9K, All now on a Debt management plan, interest frozen and about £250 a month. I am over 50 and have not a hope in hell of repaying it all. Its now about 4 years old. In two years I have a small pension pot of £30k. As per my title, what do you think will happen to me? I cant go bankrupt by the way.

Tixy

How long have you been on the DMP? Is that the 4years you mention?

Do you have any other assets except the pension pot? are you a homeowner?

If you have no other assets then possibility your creditors will continue with the DMP payments for some years, perhaps with some of them obtaining CCJs along the way. Then when you retire you would presumably look to reduce the monthly DMP payment significantly. And at that point some may accept, some may then decide to take court action at that point.

Perhaps at the point of your retirement you may decide to apply for bankruptcy (assuming the current reason you do not wish to is job related)

Alternatively one of more of your creditors, particularly given the amounts involved, may decide to petition for your bankruptcy before you retire.

Is your DMP with one of the free/charitable DMP providers? what have they recommended as a long term plan?

serious_debt

Thanks for the reply, I have no other assets and no house. I rent. I pay a DMP company and they say just let them rot away as I have nothing to offer them. They think at some time in the future they will settle for between 10 and 20p in the £. I have been in the DMP for four years. Interested in others views. Also what happens to my credit report after six years.

Tixy

When you say you pay a DMP company - are they taking a monthly fee from your payment?

If so then I would strongly suggest that you switch to a free service so that all the money is going towards your debts. That could either be a DMP through one of the charity providers, or even a self-managed DMP yourself through an online service - see post 3 on this link - IMPORTANT - Where to seek professional impartial advice about your debts.

Your creditors/debt collectors may well accept reduced settlements at some point in the future, possibly even as little as 20% - although it doesn't sound like your pension pot would cover that much, but you may be able to use it to clear some of your debts.

In terms of your credit file - for each account entry with a default date, the debt entry and the default will drop off your file 6years after that default date (whether settled or not).
Any CCJ will drop off your file 6 years after the judgement date.

So it all depends on the dates each creditor entered a default on your credit file and also the date of the CCJ and any future CCJs that you may get.

Rrushi_Shqiptar

Tixy wrote: »

Alternatively one of more of your creditors, particularly given the amounts involved, may decide to petition for your bankruptcy before you retire.

I don't want to worry you but I was in a bad place too but nowhere near as much debt, but debt is debt.

I was MADE BR by a debt collection agency (Arrow Global, American company involved in all the US problems too) who bought the debt from MBNA. The amount was about £850. So I suppose as Trixi says it may even be out of your hands.

if she has run off with the car and cards surely you could report them stolen or and get them blocked?

serious_debt

As the card providers register a default every month, I presume they wont drop off the credit file.
I am not sure if they will bankrupt me as at the moment they get their money and a hope of repayment. If they bankrupt me they get nothing.

serious_debt

Rrushi_Shqiptar wrote: »

if she has run off with the car and cards surely you could report them stolen or and get them blocked?

This was all four/five years ago, the car and cards were in my name so its my fault.

Tixy

serious_debt wrote: »

As the card providers register a default every month, I presume they wont drop off the credit file.
I am not sure if they will bankrupt me as at the moment they get their money and a hope of repayment. If they bankrupt me they get nothing.

It is the date of default shown on each account on file that is the relevant date. The default status each month is not a new default.

serious_debt

So, am I correct that as everything happened at the same time, 4 years ago. There is a chance that the whole lot drops of the credit file in two years time!
I have now new debts, not surprising really as no one will lend me any money!

Quimoi

serious_debt wrote: »

As the card providers register a default every month, I presume they wont drop off the credit file.

They will disappear six years from the default date recorded on your file - the monthly returns don't affect this, they are just updates on the account. If a creditor applies for (and gets) a county court judgement against you then that would stay on for a further six years from the date of the judgement.

To be blunt though I can't imagine your credit file really matters with the outstanding debts - even an excellent, unblemished file with that level of debt to income would stop any further credit.

Bankruptcy would be the obvious fix but if it's not an option then carrying on with minimum payments as you are doing is the only option and see what happens. As Tixy said in a previous post make sure all the money you are paying is going towards your debts.

Edit: slow typer... already pointed out by Tixy

Quimoi

serious_debt wrote: »

So, am I correct that as everything happened at the same time, 4 years ago. There is a chance that the whole lot drops of the credit file in two years time!
I have now new debts, not surprising really as no one will lend me any money!

Yes but the debts don't disappear, they are still enforceable even if not shown on your credit report...

If you can get to six years since you last made a payment or acknowledge a debt then it becomes statute barred and unenforceable but I'd be shocked if any creditor let that happen for the size of these debts.