www.iva.co.uk

Long story short:
I have 2 ccjs and 3 defaults. I spoke to a debt company who tried to encourage me to get an iva because it will improve my credit rating quickest.

I’m wary of this because my last default is janurary last year. Meaning it will drop of the register in 5 years. An iva lasts 5 years so it makes no difference, in fact it should take longer than waiting for the default to drop off because it isn’t active yet.

I mentioned to the guy on the phone that my ccjs will drop of the register in one year and 2 years. He said they last 20 years? That isn’t true is it? Or is it? I always believed it would be 6 years meaning the first one drops off June 2021 and the second April 2022. He also said that they would become statue barred. I was under the impression that ccjs don’t become statue barred?

I’m not being harassed by any debt collection companies other than the odd letter every few months.

To be totally honest I was planning on just ignoring them. 2 years for my ccjs to disappear is manageable. The defaults are bad but I can cope with them. They are also relatively small amounts each - possibly totally £900s each.

Should I just leave things as they are or risk starting the whole process again by acknowledging the debt? The 6 year wait for them to become statue barred would be restarted if I acknowledge I owe the money.

Thanks guys

A CCJ and / or a formal default will remain on your credit file for 6 years, regardless of whether it is satisfied or not. An unsatisied CCJ, although no longer on the public record, can remain enforceable after the limitation period, with permission from the courts to proceed with collection --- though, for a few hundred pounds, I doubt they would bother. Applying for an IVA now would reset the limitation clock and start the 6 years again.

There are various options available to you, an iva being just one of them.

You should approach a few companies that offer a range of debt solutions so that the right course of action for your level of debt is chosen.

Don't go on just one conversation, spending more time now will pay dividends later.

Are your total debts c£1,800? If so an IVA will not be suitable for you.