Defaulted Accounts - HELP?

BA1985

Hello, 

Hoping someone can provide me a definitive answer. 

I have several defaulted accounts (credit cards & shopping accounts) which range from 2017 to 2020. They have all been bought from the original creditor to debt management agencies. I have to date, managed to arrange payment plans with all of them, paying from £10 to £50 per month. 

My question is, when these defaulted accounts drop off my credit file (after 6 years i believe from the original date of the default), am i still legally obliged to carry on payments to the debt companies? 

My understanding was that after 6 years, my debt is null & void. But someone has advised me, that its in fact 6 years from my last payment to the debt company which legally they then can't enforce repayment.....?

Once the defaults drop off my credit file, and if i stopped paying, i assume the debt companies would just issue a CCJ against me? 

Unfortunately, i am not financially in a position to offer part settlement, some of the debts are upwards of 6k. 

Any confirmation, or anyone that has gone through this process would be really helpful. 

Platespinner123

Hi there

After a default notice has been on your account for six years, it drops off your credit report.

This does not mean that you no longer owe these debts, nor that the creditors can't take you to court to get a CCJ. There is a six-year time period for the type of debt you talk about to be 'statute-barred', but this is reset every time you:

• Make a payment towards the account; or
• Acknowledge the debt in writing

That's one reason why creditors are happy to keep accepting small monthly payments - it keeps the possibility of future court action alive.

If you haven't already, I would speak to a free debt advice service about your situation.