Default notice.. HELP!

Welshie28

Hi all,

I'm currently in a DMP with stepchange and all is goinv well. I received a default notice yesterday from my largest creditor (owe £16k) and it states that I'm £2500 in arrears. They will more than likely pass my debt on however I am obviously unable to pay these arrears in full. Do I just keep paying my DMP as normal? Also, how likely is it that they could take me to court or send bailiffs even though they agreed to my DMP??

This is really worrying me.

Thanks.

zenshi

Just carry on as normal. Strangely enough, defaults are good! This means a debt comes off your credit file after 6 years of the default, regardless of whether you have cleared the debt or not

dancingfairy

You have no control over when they issue defaults and the various letters / stages they go through.
Your job is to repay faithfully the money that you owe as best you can. They probably don't like it but that's tough.
They're following procedure and issuing a default. This may mean that they are now more willing to suspend interest and charges to help you get back on your feet. They may pass the debt around internally or they may sell the debt on, that's up to them.
Its highly unlikely you will get debt collectors as it costs time and money to send people out and it doesn't always get people to pay any quicker.
You will likely get lots of scary letters warning of this or that consequence or threatening further action or some sort. Just file them and keep doing what you're doing.
They may or may not bother with court etc. If they do it goes to court , they say you owe the money, you say I can only repay at x amount per month and generally that's what happens - you end up paying them x a month but just under a court agreement. The court bit can be sorted if it happens, just pop back on here if you get any court letters.
Df

sourcrates

They are required by law to issue a default notice when contracted payments get so far into arrears.
This is an entirely seperate issue to your DMP, and won't take it into account.
Please do some research, In order for a bailiff to become involved, the creditor would have to take you to court and obtain a CCJ.

You would then have to default on the payment the court had set, only at that point would the creditor have the option of using a bailiff.

And for normal consumer credit debts, this rarely happens.

Welshie28

Thank you all for you're replies, you have been very helpful.
I feel better now