Author Topic: Defaults disappear 6 years from when?  (Read 4404 times)

clairecat

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Defaults disappear 6 years from when?
« on: Apr 27, 2011, 07:16:27 PM »
I have about 12/13 defaults on my credit report which all defaulted between 2007/2008. Long story, but I really need to sort these out because my credit is just ridiculously bad and I want to be able to buy a house at some point before I retire!

My question is, on my credit expert report, it says:

"A defaulted account is removed from your report after six years whether or not you have paid the debt in full. If you have paid some of the debt off, the balance should show how much you still owe. "

Now, I have worked it out and I wont be in a position to start trying to settle these accounts til towards the end of the year, and it's going to take me about 4 years to clear the balances off.   If they disappear off my report in 6 years, regardless of whether I pay them or not, whats the point in trying to pay them? Is it 6 years from the defaulted date and not 6 years from the last time the account was updated?

I want to sort it out - its not enough debt to go into a trust deed, and a debt management plan is expensive and not legally binding, so I'm failing to see the plus side to that. But if its going to take 4 years to pay it, and its going to disappear in 4 years anyway, is it a waste of money? Would I be better keeping the money to buy a house?

How long after defaults disappear does my credit rating start to get better? I'm just confused and not sure what to do.

shocksoc335

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Re: Defaults disappear 6 years from when?
« Reply #1 on: May 06, 2011, 08:26:36 AM »
 :) 6years from the date it was entered onto your file :buck2: When you eventually repay the debt it will show as satisfied :D
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James Falla

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Re: Defaults disappear 6 years from when?
« Reply #2 on: May 11, 2011, 06:55:08 PM »
Hi clairecat
 
A Shocksoc has said, a defualt notice remains on your credit file for 6 years from the date it was issued. After that it comes off. If during those 6 yaers, you have made no further payments towards your debt and your creditor has taken no further action against you to enforce it, then it becomes statute barred and in essence is no longer enforceable.
 
However, I would never recomend ignoring the debt as it is more than likely that the creditor will take action. From your comment regarding a Trust Deed I assume you live in Scotland. Have you considered a Debt Arrangement Scheme (DAS). This is basically a legally binding DMP available for people living in scotland giving great advantages....
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michelle2011

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Re: Defaults disappear 6 years from when?
« Reply #3 on: May 25, 2011, 06:32:45 PM »
Also, if you acknowledge the debt within that time, the clock resets :(

shocksoc335

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Re: Defaults disappear 6 years from when?
« Reply #4 on: May 26, 2011, 07:56:47 AM »
 :-X It doe's indeed!
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