Defaults & DMP .... what next ?

Donewithnow

Hi
I entered into a DMP with Stepchange in August 2018 following 3 defaults  dated May 2018. 
I have kept all payments to Stepchange and not incurred any other debt at all. If it wasn't for the 3 defaults I would have a very clean credit report.

My question is about the future.

From what I understand, the defaults are recorded for 6 years on any credit report (in reality 6 years and 364 days ?). 
Are the defaults removed from the credit report, and I continue to pay via Stepchange ? 

What happens please ?

sourcrates

6 years from the original date of default all trace will vanish from your file automatically.

The debt however will still be live and collectable, it just won`t be reported on your file any longer.

Should you stop paying, the creditor still reserves the right to legal action.

Donewithnow

Thank you.
Normally (in your experience I guess) would the creditors be willing to negotiate after the 6 year point to settle ? Would that be common ?
 

sourcrates

What is normal is for debts to be sold on occasionally, and the companies that buy them can offer good discounts yes, original creditors not so much, the older the debt the better the chance of a decent settlement.

peteuk

Donewithnow said:

Thank you.
Normally (in your experience I guess) would the creditors be willing to negotiate after the 6 year point to settle ? Would that be common ?
 

You can ask for a settlement figure at any point, although Once you enter a DMP you agree (in theory) to treat each creditor equally.

Had you not defaulted then your creditors would continue to report n the debt for 6 years after your last payment.  Which would see the debt as settled.  If at any point you agreed a lower settlement figure then it would be marked as partially settled.

Your default will, i believe not allow a settled or partial settlement to be noted

sourcrates

peteuk said:

Donewithnow said:

Thank you.
Normally (in your experience I guess) would the creditors be willing to negotiate after the 6 year point to settle ? Would that be common ?
 

You can ask for a settlement figure at any point, although Once you enter a DMP you agree (in theory) to treat each creditor equally.

Had you not defaulted then your creditors would continue to report n the debt for 6 years after your last payment.  Which would see the debt as settled.  If at any point you agreed a lower settlement figure then it would be marked as partially settled.

Your default will, i believe not allow a settled or partial settlement to be noted

Treating creditors fairly, whilst an admirable suggestion, is a course of action only insisted on by the debt charities, and certain other DMP providers, really it`s a myth.

Should you want to self-manage, then there are no formal rules of any kind, you can pretty much dictate how/when/why and what you do yourself, with no agenda other than what`s best for you.

Debt management is an informal way of repaying your debts, it`s the 3rd parties that provide the service that make up those rules, there is no formal guidance on the subject at all.

Now all that will change, eventually, with the introduction of the formal debt management plan, if and when it ever gets off the ground that is.

peteuk

sourcrates said:

peteuk said:

Donewithnow said:

Thank you.
Normally (in your experience I guess) would the creditors be willing to negotiate after the 6 year point to settle ? Would that be common ?
 

You can ask for a settlement figure at any point, although Once you enter a DMP you agree (in theory) to treat each creditor equally.

Treating creditors fairly, whilst an admirable suggestion, is a course of action only insisted on by the debt charities, and certain other DMP providers, really it`s a myth.

Should you want to self-manage, then there are no formal rules of any kind, you can pretty much dictate how/when/why and what you do yourself, with no agenda other than what`s best for you.

Totally agree, hence the (in theory) and given OP has a DMP with step change.

It was something impressed on us when we took our DMP in 2005 with CCCS (now step change) which in the end I self managed.