When does debt come off report

Lcornbat

Hi all,
Looking for some advice. Due to a chaotic personal life including several bad break ups and having to start from scratch time and again I have terrible credit score and debt. I went through my Equifax report and want to sort it out and repair my score. I read somewhere that debt comes off your report 6 years after the default date listed on the debt. Is that correct? Looking at my debts I would stand a much better chance at paying off more recent debts which are only a small amount really and waiting the 2/3 years for the rest m to be written off as I doubt in that time period I would be able to pay them off . however I also read that obviously in that period they may come after me in the form of a ccj. So what's the best option? Should I make token payments to those ones in the meantime to prevent that and wait till they get written off? Any advice welcome. Also if I did that do you have to apply to get them taken off your report or do they come off automatically? Also how good and accurate is Equifax as opposed to Experian? Thanks

DCFC79

They are as good as each other, lenders can use 1 credit ref agency, 2 or all 3, the other is call credit. It's not your credit score your repairing but your credit history, your credit score with the 3 different agencies varies which although look nice they aren't seen by lenders.

Yes it's correct debts fall off your credit report after 6 years from date of default.

Carrot007

And do remember they are just removed from your credit report 6 years after default.

They are not written off. you still owe the money and they could get a CCJ is you do not pay and then reappear on your report.

Superscrooge

It always looks better on your credit file if defaults are paid off and marked as satisfied.

So if you have the cash available, I would certainly pay those you can afford.

boo_star

Carrot007 wrote: »

And do remember they are just removed from your credit report 6 years after default.

They are not written off. you still owe the money and they could get a CCJ is you do not pay and then reappear on your report.

Not quite correct.

If the OP makes no payment or written acknowledgement of the debt for 6 years they will become statute barred, a complete defence against County Court action.

If the OP makes token payments to prevent court action though, they'll be resetting the clock with each payment.

You are right about them not being written off though, being statute barred does not mean the debts are not owed, the creditor simply has no legal avenues to recover it.

Lcornbat

So the money is still owed but do they take it off your record.

Lcornbat

Further to this I figured I should offer more info in the hope of advice. I have about £4500 of debt spread over about 7 debtors. I never want a credit card or anything again myself and my new partners income is ridiculously low so we are good at now living within our budget . however I would like to one day in years to come be able to consider buying a house and getting a mortgage. However pie on the sky this dream is. Researching over the last few days I don't know what the best option is. As I said most of my debt(about 4000) has default dates meaning they should be state barred by 2019 . but if I was to leave it I'm aware they could wait till the end and still apply for ccjs. I've read about offering them settlements sometimes 20p to the £1 . should I do this? If I did and they accept would the details still come off my report in 2019? Does every account settled or not come off after 6 years? Also if I did make an offer that means I'm acknowledging the debt and therefore does the 6 year start over again or does the original default date stand. Sorry loads questions thanks

alltheinfo

boo_star wrote: »

Not quite correct.

If the OP makes no payment or written acknowledgement of the debt for 6 years they will become statute barred, a complete defence against County Court action.

If the OP makes token payments to prevent court action though, they'll be resetting the clock with each payment.

You are right about them not being written off though, being statute barred does not mean the debts are not owed, the creditor simply has no legal avenues to recover it.

This isn't quite correct. A debt would become statute barred if the creditor doesn't attempt to recover the debt for 6 years, not because the debtor decides not to make payments or acknowledge the debt.

I'm sure your creditors can prove that you are the debtor and by them writing to you about the debt, the clock resets at that point.

The defaults recorded on your file would drop off after 6 years even if you still owe the debt. What would show on your credit file is how much of each debt is still owed and how much you are paying back each month.

If you are struggling with your debts you could contact Step Change. They could set up a debt management plan for you so an affordable amount is sent to each creditor, they may decide to freeze interest and charges for you as well depending on your financial situation.

fermi

alltheinfo wrote: »

This isn't quite correct. A debt would become statute barred if the creditor doesn't attempt to recover the debt for 6 years, not because the debtor decides not to make payments or acknowledge the debt.

It is quite true.

alltheinfo wrote: »

I'm sure your creditors can prove that you are the debtor and by them writing to you about the debt, the clock resets at that point.

Nothing the creditor can do, short of issuing legal proceedings, resets/stops the clock preventing the debt becoming statute barred.

The creditor can quite literally write to you every day of the entire 6 years, and at the end it would still NOT prevent the debt becoming statute barred.

The Limitations Act 1980 is very clear.

The 6 years limitation period restarts on fresh accrual of the right of action only on either:

- Signed acknowledgement in writing by the debtor or their legally appointed representative.

or

- Part payment by the debtor or their representative, or that of a jointly liable person.

NOTHING else.

sourcrates

A defaulted account will stay on your file for 6 years, from date of default, paid or not.

An account will become statute barred after 6 years of non payment, or written acknowledgement by the debtor, from the "cause of action" date, not always the default date.
Nothing the creditor can do, with the exception of obtaining a CCJ, can re-start the clock.

It's pot luck if a creditor go's down the legal route, some people get clobbered, some get ignored, there is no rhyme or reason to it.

You can chance your arm, save up some money, if a creditor is going to get legal with you, they have to follow the "civil procedure rules", which basically means they have to tell you there taking you to court, you could settle each account, if, and, or when, court action is imminent.

Other option is to pay them off either by monthly payments, or full and final settlements.

johnmondin81

It really depends on the country. In Canada, it could come off in 6 months to 10 years.