Default Notice Timeline / 2 Months Breathing Space

tksnota

In your experience how long does a default notice was issued from the first month you missed a payment? The reason I’m asking because I want to trigger the 2 months breathing space after getting the default notice because I’d engaged a solicitor to recover some money from the scam but it will take an average of 8-9 months to get the money.

My assumption using the maximum default timeline and the 2 months breathing space by the time I’d started my DMP it will only be a few months wait for the recovery of scam money then maybe maybe I can pay off a huge chunk of the outstanding amounts

sourcrates

FCA guidance states that a default can be registered after between 3/6 missed contractual payments.

However, due to the cost of living crisis, lenders have been instructed to be patient with debtors struggling to pay their debts, and try to avoid defaulting for as long as possible, so really it will depend on your creditors attitude to all of this, there is no way of knowing when or if a default will be registered, until you get the default notice in the post.

Different creditors will have different approaches to this matter, but its not a timeline you can safely rely on.

If you want to take advantage of breathing space, then do so, but really you can take as long as you need.

The collection process is very slow to act, after 9 months it would be very likely that your debts, or at least some of them, will have been sold on at least once.

Best advice is to just let the dice roll, until you are ready to act.

tksnota

Hi,

I had a few more questions.

1. Do I need to talk to individual creditors about my situation or just wait for the default? I'm afraid talking to them will entail CCJ when I decided to go for DMP not IVA?
2. What do you mean collection process? Is this CCJ or default?

Grumpelstiltskin

Right I think you need to hold fire until you have researched exactly what you are doing.

Advice here is to firstly do a SOA and post it on here then we can see exactly what your problem is.

Then stop paying all unsecured debts and wait for them to default in the mean time saving as much as you can for an emergency fund.

Do not even think about an IVA unless you have a mortgage and large amount of debt.

Start by reading this

Debt-Free Wannabe Sticky - Provit & Statute Barred Letters, Defaults, Help and Guidance, All Here... — MoneySavingExpert Forum

tksnota

thanks for this forum. i'd recently recovered about my suicide attempts due to the scam so this forum had been one of my resource for anything financial. 

is default notice needs to be within the 3/6 months based on fca guidelines then the next process will be the default on the file? is this right?

how long it typical takes from default to get a ccj?

can i asked if my actions will be considered as fraud because during the scam  I used my old salary in my previous employer to apply and managed to get hefty unsecured debts even though I’m unemployed 

RAS

You really do need some tailored personal debt advice.

1) a default notice doesn't need to be with 3-6 months, even if that is the FCA guideline. Other people here are sometimes begging their creditors for a default 18 months after they stopped paying.

2) By and large, creditors of consumer debt don't go for a CCJ, even though their letters warn they could. Particularly if you set up a payment to them once the debt is defaulted.

sourcrates

OK, your going off on various tangents here.

When you stop making your contracted credit repayments, your creditors will start asking you for payment, by writing to you, calling you, email etc.

This is known as the "collection process" they are looking to collect payment from you, and get you back on track. Defaults are just a part of this process, if you fail to engage with your creditors, then they will pass your accounts to debt collectors, or they may sell them.

A CCJ is very unlikely at this early juncture, that can happen usually much later in the process, when your debts have been sold to new owners and you continue to ignore them.

You really need to detail what you owe, and to whom, and explain your circumstances in much more detail, just sticking to the facts, in order to get the best response.

RWMJPMC86

What is the scam you refer to?

In one comment here you say you used your old salary as the basis for a loan, in another you say you've been scammed out of a lot of money?

You can set up a debt management plan and arrange with the people you owe money to to pay them back at a reduced rate. 
I only recently received a default for a debt I stopped paying in April 2022 - there are no hard rules.
I don't think breathing space matters once you've entered a DMP and have defaults, it is more for creditors to not chase you while you arrange a plan.

I think it is best that you speak with StepChange or a similar free advisory service. A CCJ is a different think to a default. Are all of your debts unsecured?

Grumpelstiltskin

OP I think you are panicking  stop nothing is going to happen.

We need to see your full financial position before we can give you detailed advice, please don't jump into anything before you need to.

Here is the link to the SOA.
https://www.lemonfool.co.uk/financecalculators/soa.php

Fill it out honestly and format for MSE and copy and paste on this thread

tksnota

I'm sorry for not being clear because the recent medications were screwing my head but they are needed to prevent any future harm on myself.

1) Task Scam wherein I need to do fund some tasks in order to earn more money
2) The scam happened when I was in my low state because I don't have a job and someone send me a job offer via Whatsapp for this task scam
3) In order to recoup my money I gave into the scammers advise to loan or ask money from friends and family 
4) I'm unemployed when the scam happened and desperate to get my money back so I used my salary and employment details from my former employer to avail more unsecured loan. CAN THIS CONSIDERED AS FRAUD?
5) After realising I was scammed committed suicide and understand this  is not the way to solve the problem so I recovered and want to deal with this debt. 
Note: I have a mortgage which will be renewed next year and I want to use the product transfer to keep the house

tksnota

This is known as the "collection process" they are looking to collect payment from you, and get you back on track. Defaults are just a part of this process, if you fail to engage with your creditors, then they will pass your accounts to debt collectors, or they may sell them.

Collection process is different to default and there is no rules how long the process takes. Are these right?

A CCJ is very unlikely at this early juncture, that can happen usually much later in the process, when your debts have been sold to new owners and you continue to ignore them.

I only start defaulting this month because couldn't work while in medications and therapies. I will go for defaults as per I read which might happen next year. Am I right? My main concern is CCJ when the defaults happen because I don't need pressure yet while I'm still in recovery.

Here is the link to the SOA.
https://www.lemonfool.co.uk/financecalculators/soa.php

i will upload my SOA details after my therapies. Thanks a lot for those people who had been in this forum that had been helping people especially like me that almost lost hope initially but getting on my feet to regain my life again.