DMP Questions

Bexta140790

Hi my partner has been advised to look at a DMP by stepchange.
He is wondering what happens with some of his old debts.
He has some defaults that are approaching the 6 year mark and are due to drop off in the next year. If he adds these to his DMP do they then reset and stay on file for the next 6 year again? Is he best to leave them off and wait it out? His concern is that they will wait until the last couple of months and then apply for a CCJ.

Willing2Learn

Bexta140790 wrote: »

Hi my partner has been advised to look at a DMP by stepchange.
He is wondering what happens with some of his old debts.
He has some defaults that are approaching the 6 year mark and are due to drop off in the next year. If he adds these to his DMP do they then reset and stay on file for the next 6 year again? Is he best to leave them off and wait it out? His concern is that they will wait until the last couple of months and then apply for a CCJ.

If the defaulted accounts are added to his DMP, they do not 'reset'. An account can only be defaulted once.

When was the last time your partner either acknowledged the applicable account in writing, or made a payment toward the accounts? What are the default dates (cause of action) of these accounts?

Bexta140790

Willing2Learn wrote: »

If the defaulted accounts are added to his DMP, they do not 'reset'. An account can only be defaulted once.

When was the last time your partner either acknowledged the applicable account in writing, or made a payment toward the accounts? What are the default dates (cause of action) of these accounts?

The default dates are 03/04/14 and 12/07/14, He hasn’t acknowledged them or made any payments to them since before they were defaulted.

Willing2Learn

Bexta140790 wrote: »

The default dates are 03/04/14 and 12/07/14, He hasn’t acknowledged them or made any payments to them since before they were defaulted.

Then the defaults will be automatically removed from his files on 03/04/20 and 12/07/20 respectively. They would also become Statute Barred (SB) on the same dates.
https://debtcamel.co.uk/statute-barred-debt/

So, he has a choice:

• Keep his head down and lie low for a few months. In other words, don't do anything that might remind his two creditors to seek a CCJ. Just a few more months and the accounts will become SB and unenforceable. (He has to keep his eye out for a Letter Before Claim)
• Add the accounts to his DMP and start making payments.

Suseka97

Good advice from W2L and if it were me I'd be keeping my head down and waiting it out. There is a chance whoever holds/owns the debt will do something about it - but then again, a chance they will not. Have these debts been sold on from the original creditor - do you know?

Also, is the address linked to these debts the same address he/you currently reside at? I ask that becuase if they were going to move forward with a CCJ, they'll send the 'letter before action' and subsequent paperwork to the address on file and you need to ensure you are able to act oni the 'letter before action' - should that occur. All you would do in that situation is make an offer of payment as part of his DMP and thus avoid further action.

Bexta140790

Suseka97 wrote: »

Good advice from W2L and if it were me I'd be keeping my head down and waiting it out. There is a chance whoever holds/owns the debt will do something about it - but then again, a chance they will not. Have these debts been sold on from the original creditor - do you know?

Also, is the address linked to these debts the same address he/you currently reside at? I ask that becuase if they were going to move forward with a CCJ, they'll send the 'letter before action' and subsequent paperwork to the address on file and you need to ensure you are able to act oni the 'letter before action' - should that occur. All you would do in that situation is make an offer of payment as part of his DMP and thus avoid further action.

No they are from an old address but been at current address almost three years so would imagine he can be easily traced. I think they are both with Lowell.

fatbelly

Bexta140790 wrote: »

The default dates are 03/04/14 and 12/07/14, He hasn’t acknowledged them or made any payments to them since before they were defaulted.

I'd leave them alone then - they are about to go statute barred.

If Lowell were thinking of taking court action against the 3/4/14 one, it would be with Lowell Solicitors now, they would be writing, and he would get a pre-action protocol letter any day now.

If none of that is happening, let sleeping dogs lie.