What happens after a default has come off?

Jeff_winter

Hi,
What happens six years after a default has been issued if you still havent repaid the debt?

I take it the debt still shows? How does this affect the credit file?

dobbollah

my understanding and i'm sure someone will set you straight if im wrong, is that after 6 years the entry will fall off your credit file, the debt still stands but there is no more record of it on your file

Tixy

That is correct, the whole account entry drops off your credit file.

The only thing that could then appear on your credit file would be if the creditor successfully took court action against you and obtained a CCJ, in which case then the CCJ would be on your file for 6 years (unless you pay off within a month of the judgement).

c-m

The debt still exists, but is unenforceable and will not show on your credit file from 6 years from the date of default. Provided there's no CCJ or similar.

If you partially repay, or acknowledge the debt at any point during that period the 6 years is reset IIRC.

What I'm not sure of is what happens if you fully pay off a default. Does the default stay there (marked as satisfied) until the original 6 years are up, or does paying it keep it on your record for 6 years from the date of payment. Thus extending your bad history.

Tixy

c-m wrote: »

The debt still exists, but is unenforceable and will not show on your credit file from 6 years from the date of default. Provided there's no CCJ or similar.

A debt would only be legally unenforceable (i.e. statute barred) if there is a period of 6 years with no payments or acknowledgement. If the debtor has been making payments since the default then the debt would not be statute barred at the point it falls off their credit file.

c-m wrote: »

What I'm not sure of is what happens if you fully pay off a default. Does the default stay there (marked as satisfied) until the original 6 years are up, or does paying it keep it on your record for 6 years from the date of payment. Thus extending your bad history.

Still drops off 6years from the default date.