In a right pickle due to covid

[AndyOrch]

Well the bottom line is how important is your clean credit file to you ? Because whatever you decide unless you maintain full payments on the debts you will be defaulted....whatever payment plan you agree.

 

Andy

[AndyOrch]

Well that's your choice whether to pay anything...once defaulted the damage is done.....payment or no payment...the only thing with making a payment arrangement as you state you  delay limitations and it may delay them in assigning the debts to DCAs...its very rare for an original creditor to instigate litigation.....but if it falls into the hands of a litigious DCA....they will certainly issue a court claim....providing they have all the correct paperwork.

 

 

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[AndyOrch]

Even making a minimum agreed payment plan (Arrangement to Pay) will starve off a default marker short term but having a AP marker on your file is worse than a full default.....a default marker will drop away after 6 years (5 Scotland)...AP markers can hang around like a bad smell for decades.

[AndyOrch]

Do you own property or renting....have you considered a DRO (debt relief order) ?

[AndyOrch]

Just now, Topham said:

That’s what my worry would be. But equally is there any benefit of paying a debt once it’s defaulted if it’s just gonna drag on

 

My personal opinion is no.....they have already trashed your credit file...the only possible further consequence is them issuing a court claim then trying to execute it with Bailiff enforcement.

[AndyOrch]

DROs are only available to renters.....so scratch that. Do not even consider an IVA.

 

Most court claims for debts are under 10K and therefore small claims track,,costs are restricted.Debts over 10K are Fast Track and then there is a risk of expensive costs...but not many DCAs go near Fast Track...the fee is too expensive to issue.

 

 

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[AndyOrch]

This is what I would do in your situation.....work out what must be paid priority.

 

Get a folder for each of the others and maintain a paper trail....date you stopped payment...date you defaulted...retain a copy of the default notice which they must serve you. Try to print the last years statements for each account and retain in their file. 

 

Then send each creditor you have opted to stop payment a section 77/78 request (CCA request)...this is a legal request for each agreement that they must respond and comply with in 12 + 2 days...if they fail to reply they are in default and unable to enforce the agreement on.

 

Retain every letter received (and envelope) and file in the appropriate folder.

 

The next stage will be debt Assignment...they will sell of your debts to a DCA for 20p in the £1...once if any debts are assigned again they must send you a Notice of assignment ...again file this in the appropriate folder. Be prepared for a deluge of letters chasing and phone calls.

 

Now the clock starts ticking for 6 years.....but thats way ahead and you can come back for further advice if and when.

 

Regards

 

Andy