The impact of defaults and repaying

bmws1985

I'm in the process of finally sorting out my credit file and repaying old debts can have a few questions.

1) I understand if debts are 6 years old (eg from a default) they become 'statute barred'. I have having been paying them off now for a year and so and have made payments every few months. Will this push back the 6 year time line? Not interested in getting out of paying them back just want to see if they will drop off my credit file if I still owe a balance at the 6 year mark?

2) If i have debts that are say 5 years old from a default date am I better to start repaying or ignore to not interfere with the 6 year rule?

3) Am I correct to prioritise paying off my most recent defaults to improve my credit file?

Many thanks like I said not trying to get out of paying just want to understand the best order to tackle my debts,

[Deleted User]

1) No. Debts are statute barred after 6 years without acknowledgement. Yours are still live and enforceable as you are still paying.

They will drop off your files 6 years from default.

2) If you're trying to solve paying them, then yes. However you run the risk of a CCJ. If you intend to repay, then the sooner the better.

3) Yes.

PixelPound

1) Statute barred is from the last time the debt was paid, acknowledged, or default date, whichever is newer. So 6 years from the last time you paid. Your Credit File shows last six years, so the default date does not change whether paying or not, and will drop off after six years even if you are still paying (and its still liable even though the default has dropped off)

2) Personal choice. You can get a CCJ right up until the six years, in fact so,long as a claims form is issued before the six years is up, you can get one, even if the judgement date would be after. Also you are in a much stronger position starting paying sooner rather once legal proceedings have started, if your intention is to avoid a CCJ.

3) Also smaller defaults, as they get marked as satisfied and less impact. Having older unsatisfied defaults is better than newer ones, as is having fewer in number.