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Original poster

Is there life after debt?

26 replies

CHOCOLATEPEANUT · 13/07/2005 20:21

Many years ago after my first marriage broke up, I got into debt. It started with hubby leaving me with house and mortgage (long story) and things just esculated...

I entered an IVA (Individual Voluntary Arrangement)to pay a monthly affordable amount. Then my mother died suddenly and I had a breakdown and stopped working for a while. I could not afford to pay naything and the IVA failed.As a result all my debts are sat on my credit file with a Default date against them.I have been told that after 6 years they will disappear and I should be ok? This all seems to good to be true.Its 6 years next year and I wonder what will happen?
On a happier note I remarried last year to a lovely man and we have a baby.He already had a house but we would love to move. Now I am working part time we would need my income taken into account to up the mortgage and move. Is that likely?

Thanks in anticipation.
xx

OP posts:
Nemo1977 · 13/07/2005 20:22

I think after 5/6yrs it is just wiped clean so u will pass credit checks.

Original poster
CHOCOLATEPEANUT · 13/07/2005 20:34

Honest? Do you know that for sure??

I am in tears now.I am so desperate to move. Husband bought house as a batchelor and not nice area to raise kids. I take baby out in the car everyday to family or friends.Anywhere but here.

thanksx

OP posts:
Tortington · 13/07/2005 20:47

im not a financial advisor but i think that 6 years after last contact your debts are wiped - with the exception of mortgage arrears which is 12 years from last contact i think

if the companies have not contacted you after 6 years then its wiped. but i think it still stays on your credit record.

i would phone the cab

Original poster
CHOCOLATEPEANUT · 13/07/2005 21:00

Confused.If its wiped why does it stay on credit record.

Have already rang CAB. They said ring Creditors?!!!

OP posts:
Tortington · 13/07/2005 22:00

becuase you wont have to pay creditors back such as say Kays catalogue - lets say 6 years ago you owed them £100. they have not contacted you since therefore the debt is wiped

however i think people such as equifax - who hold credit records will still show that you did not pay Kays catalogue - despite Kays catalogue not being able to get the money off you legally - if you are to clear your credit record you will have to pay the debt

with me?

cab should be more helpful - ring another one -or look up their website. you dont have to ring the one in your town - ring one in sheffield if you want - the laws the same

wobblyknicks · 13/07/2005 22:03

There are some 'sub-prime' lenders who can lend to you even if you have an iffy credit record, and they're not all sharks who want enormous amounts of money (although some are). Would recommend giving the one I work for a call but don't want to post the name on MN so CAT me if you're interested. Have you tried a lender yet, they might not be as bothered as you think.

Original poster
CHOCOLATEPEANUT · 13/07/2005 22:05

now v confused

Rang experian and they said my debts (all banks and c cards) should come off next year but wanted to hear from someone who has actually experienced that as dont trust them!

so say a c card debt,unpaid but 6 years old, it should disappear,correct?

OP posts:
wobblyknicks · 13/07/2005 22:07

Things do disappear, even unpaid, after a certain long time but not sure how long - best way is to get your credit record for yourself and look. Apply to Experian and/or Equifax - they charge about £2 to send you your record.

Original poster
CHOCOLATEPEANUT · 13/07/2005 22:09

Thanks. Did that happen to you. Can a real person say that does happen

All mine are coming upto 6 years, got all credit reports and while monitor over next 12 months

fingers crossed
thanks everyone

xxx

OP posts:
Crazymama · 13/07/2005 22:10

If you default on an IVA, I thought that you had to be made bankrupt?

uwila · 13/07/2005 23:15

I think if youdefault on an IVA your creditors can force you into bankruptcy, but I don't know if it happens automatically. I think the six years and being marked as default happen even with the iva in good standing.

Try contacting payplan. They are very helpful.

Original poster
CHOCOLATEPEANUT · 14/07/2005 07:27

I thought I would be made bankrupt but there was not enough funds paid into the iva and it would have cost them to do so.

OP posts:
meto · 14/07/2005 07:36

we've been told with our IVA it's reviewed every year, to see if there is any changes, and we have the option for a 3 month'holiday' if we need it, did u not have that option to help you out?

good luck thou with yours.

Original poster
CHOCOLATEPEANUT · 14/07/2005 07:49

My IVA failed 5 years ago so its well gone.I am just hoping that all debts disappear from file next year after the said 6 years as i have been told.

My bad debt years seem an eternity away and i just want a fresh start. Is that so bad?

Not like i will ever get credit again. Just want a nicer house. Nothing to grand. Just one where i can raise my family safely.
x

OP posts:
jamboure · 14/07/2005 09:56

i so hope there is life fter debt or i am fcuked

katierocket · 14/07/2005 10:02

yes they will be cleared after 6 years. You should get a copy of your credit reference file
see here

it only costs a few pounds

katierocket · 14/07/2005 10:03

sorry choc peanut, just noticed that you have already been in touch The other people who can give you correct info is The Data Protection Registrar

Toothache · 14/07/2005 10:07

Your debt isn't wiped after 6 yrs.... they companies just don't have a legal right to chase you for them after 6 yrs! They will still sit on your credit file though..... my DH defaulted on a bank loan long before I met him. He has 6mths left before they can no longer chase him for payments.

Original poster
CHOCOLATEPEANUT · 14/07/2005 11:36

Jamboure LOL

Toothache - One of mine has gone already from file (when it got to 6 years)experian told me the rest would go

OP posts:
Original poster
CHOCOLATEPEANUT · 14/07/2005 11:42

If they stayed on your file (even though they could not chase you) you would always look like a bad payer and i guess nobody would touch you.

I have rang experian.They said the opposite.They come off your file after 6 years but they are never wipped out as far as your creditor is concerned.But as long as I get a mortgage next year (post 6 years for all debts) i dont care!!

thanks
x

OP posts:
Toothache · 14/07/2005 12:52

CP - It must be different here (Scotland). I'm sure I discovered huge differences in the law between England and Scotland.
Great news for my DH if it applies in Scotland too though!!!!

Original poster
CHOCOLATEPEANUT · 14/07/2005 13:44

I know there are differances in the laws between England and Scotland.Not v fair though. But if you have the same Credit agencies who can blight your life (ours are Experian,Equifax and Call Credit)the rules should be the same.

OP posts:
jamboure · 14/07/2005 20:54

I am also in scotland, so how long then is it that a company can stop hassling you for debt

Toothache · 15/07/2005 11:05

Jamboure - They can hassel you forever, but after 6 years there is nothing they can legally do to retrieve the debt.

wigglyworms · 16/07/2005 14:02

chocolatepeanut, please do not take this the wrong way but if you can afford to take on a new mortgage, why cant you afford to pay back your debts? Just my opinion, but wondered why you wanted to avoid paying them back.
I only say this because I am absolutely skint each month cause im paying back credit card/loans and although id love for the slate to be wiped clean, I'd never dream of not paying my debts.