Defaults dropping off and statue barred

SuperFrank88

Hello,

It’s been a long time since I’ve been on the forum. Back in 2020 I defaulted on all my debts and started a self managed DMP. Fast forward nearly 6 years (where has the time gone?!!) and my defaults are starting to drop off my credit report. Over the past 6 years I have been making small token payments to all my debts and I have been left alone by the companies, no phone calls, no letters, nothing, which has been great. Now I know that the companies can’t issue a new default but if I was to stop paying the token payments, apart from them contacting me, could they do anything else?
if I stopped paying for the next 6 years, would they become statue barred?

Thanks in advance.

ManyWays

If you stop paying, they can take you to court for a CCJ, which wrecks your credit score for another 6 years, so that is not a good option.

Your better options are

1) ask any debt collectors to produce the CCA agreement of the debt. If they can, you carry on paying. If not, the debt is unenforceable and you can simply stop paying. See

Credit agreements | Getting information | National Debtline

for exactly how to do this, with the template to use.
DO THIS ASAP as new legislation may remove your right to do this

2) save up and make settlement offers to some of the debts

sourcrates

Well its a bit of a gamble, if you fancy a punt, you could stop paying and let the dice roll.

Some people do stop paying and never hear another thing about the debts, others are taken to court for non payment, where you risk a CCJ.

There is no clear answer as to what action creditors will take, as it depends on who owns your debts, and what priority they give to their collection, some companies are more litigious than others.

I second the advice to send CCA requests, see how productive they are.

Going forward from that, affordability is a big thing these days, if you continue to inform your creditors you cannot afford to service these debts at all, then its more likely they will just leave you alone, they may agree to cease collection activity, or even write the debt off completely.

SuperFrank88

Thank you both for the detailed replies. Will get those CCA’s off as and when the defaults hit the 6 year mark.

RAS

No, if the debts haven't hit the 6 year mark, read up on affordability claims on debtcamel (edited). Because claiming after 6 years is much harder. At least, get supporting evidence.

If they aren't relevant, doing a CCA request when you have time. Waiting isn't going to make much difference to the outcome, although it wouldn't surprise me is some lenders destroy some documents after 6 year deadline.