Default Notice Timeline / 2 Months Breathing Space

Grumpelstiltskin

Right  As I said don't panic, as long as you can pay your mortgage, council tax, and utilities that is all that matters.

Yes technically what you did was fraud, but hundreds have done the same thing before you and hundreds more will do it in the future. 

Nothing terrible is going to happen, you need to get all the help you can to get yourself in a position to sort this out, there will be a way to sort it.

tksnota

1. so it is a fraud...i read breathing space, iva or dmp will not be applicable if it is fraud...i want to be strong and not do what i had done before really not the solution...so need to talk to organizations like stepchange to know what the next steps... is that a prudent move?

2. when talking to step change is advisable just leave out the information that I take out unsecured loan when I'm unemployed or the lenders will eventually be aware about it?

3. will the unsecured loan lenders verify with my previous employer to check if I had committed the fraud?

apologies for these questions just hoping someone had been in this situation or can advise prior to engaging with stepchange

tksnota

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.

What will happen if the default was registered more than a year eg 18 months? Does it mean it will stay on the credit file starting on the 19 months for 6 years

What can I do to get the default registered early instead of waiting for more than a year?

Is this purposely done by the lenders?

sourcrates

It would be wiser, and simpler, to say the debts just got unmanageable if you are ever asked, make no mention of fraud or taking on borrowing to fund it, no one will be looking at fraud, no one will care, no one will ask, best to leave it at that.

What is the obsession with defaults? a default stays on file for 6 years, no matter what you do, you don`t need an account to default to enter debt management, companies follow their own guidelines, unfortunately you have no say in how they operate.

Sly72

I stopped all payment last year sept 22 all have defaulted now takes an age except one which is paypal.

tksnota

I stopped all payment last year sept 22 all have defaulted now takes an age except one which is paypal.

I only recently received a default for a debt I stopped paying in April 2022 - there are no hard rules.

How many creditors do you have when you stop payment?

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 I need to save an emergency fund under my account because if I decided to go for DMP I might need to declare it or not? Declaring the emergency funds meant it will be used to pay my debt. Is that right?

sourcrates

tksnota said:

Do I need to save an emergency fund under my account because if I decided to go for DMP I might need to declare it or not? Declaring the emergency funds meant it will be used to pay my debt. Is that right?

You don`t have to declare anything, to anyone in debt management, its an informal debt solution, it is not regulated (yet) so your business is your business and no body else's.

A regulated debt solution such as bankruptcy would take into account your assets, but not a DMP, you cannot be forced to do anything you don`t want to in debt management.

tksnota

Do I need to return items I bought from Argos and Currys in the event I can’t continue paying them because I assumed they are secured by things then no default will be applicable and might not be included in DMP?  

Or just saved the payments for my emergency funds?

Grumpelstiltskin

No you don't have to return any goods you have bought on credit, only secured debts are usually mortgages, secured on your property and some forms of car credit.  Normal purchases on credit are not secured, you do need to get an emergency fund together as you won't be relying on credit in the future, so if your fridge freezer packs up you will have cash to buy another one.

sourcrates

tksnota said:

Do I need to return items I bought from Argos and Currys in the event I can’t continue paying them because I assumed they are secured by things then no default will be applicable and might not be included in DMP?  

No, that won`t be necessary, they won`t want your stuff back, the debts will just go to collection, like any other unsecured debt, try not to overthink things, concentrate on your savings fund.