Self managed DMP

Cherubneddy70

hi, I have 6 defaulted accounts that I make small monthly repayments on, and the interest has been frozen on all of them. I have been paying regularly for 4 years now. What happens after 6 years, are these debts wiped? Presumably if yes, it will take longer for my credit score to recover than if I had settled them?

I am due to receive an inheritance which would mean I could pay off all the debts IF they’d accept 50% of the outstanding amounts. Is it still worth requesting they send me a copy of the CCAs before I make any settlement offers?

Many thanks.

fatbelly

No the debts are not 'wiped' but 6 years after the default date the entry is removed from your credit file

It is always worth doing cca requests on relevant debts. If they cannot produce one then stop paying.

On enforceable debts if you are making settlement offers then start below 50% to give yourself room for negotiation

sourcrates

Debts are only "wiped" after 6 years, if you have not paid anything towards them, or acknowledged them in writing, for the same period of time, you have been making small payments so they will never be statute barred.

However, the longer they have these accounts on their books, the better the chance of a reasonable settlement.