DMP & Defaults

happy2017

Hi there,

I'm currently on a DMP which isn't expected to finish until 2028.

My question is around the defaults on my credit file, which have been on for 2 years, what will happen to them after the 6 years? will they drop off my credit file or remain on until the DMP is fully paid in 2028?

Thanks very much

sourcrates

Hi,

I would urge you in future to use the search facility on this site, as this will have been asked 1000 times before, as its a very common question.

Just for your information, defaults stay on file for 6 years, then drop off automatically, regardless of what you do, paid/unpaid/ignored whatever, they will still be gone on the 6th anniversary.

Hope that clarifies things for you.

funny_bunny

sourcrates said:

Hi,

I would urge you in future to use the search facility on this site, as this will have been asked 1000 times before, as its a very common question.

Just for your information, defaults stay on file for 6 years, then drop off automatically, regardless of what you do, paid/unpaid/ignored whatever, they will still be gone on the 6th anniversary.

Hope that clarifies things for you.

Does that mean the debts will be statued barred? Creditors cannot take any legal action to recover anything leftover after 6 years.

I am sure someone somwhere asked/answered similar question thousand times but problem is, finding that often tricky, maybe I'm not that good at searching.

Thanks.

[Deleted User]

funny_bunny said:

sourcrates said:

Hi,

I would urge you in future to use the search facility on this site, as this will have been asked 1000 times before, as its a very common question.

Just for your information, defaults stay on file for 6 years, then drop off automatically, regardless of what you do, paid/unpaid/ignored whatever, they will still be gone on the 6th anniversary.

Hope that clarifies things for you.

Does that mean the debts will be statued barred? Creditors cannot take any legal action to recover anything leftover after 6 years.

No.  Statute barring is entirely separate to CRA reporting.

You need six years of non-payment/acknowledgment of the debt for it be unenforceable.  A debt's appearance on your files has no bearing on that.