Hi there - Ok, i am back now to write this in full!
So - What i meant was..............Just leave everything.
Lets say its just credit card and loan debt only and the person rents - no secured debt, no council / water debt etc . No more than about 5k on each credit card / loan - spread over multiple lenders.
So, don't open any of those letters, ignore the calls (get a new number) and just get the eventual default on your credit file (which, like an IVA would go after 6 years anyway leaving a clean credit file). If a CCJ comes along ignore that too (nobody attends court anyway) and just let go from your file after 6 years. So, basically - just stop paying anything. No contact with anyone.
What i am getting at is the end result is the same over the 6 year period with regard your credit file - so why bother paying anything at all?
I AM NOT SAYING THIS IS THE RIGHT THING TO DO - JUST ASKING IF THE END RESULT IS THE SAME, THEN IS IT NOT POSSIBLE TO JUST NOT PAY ANYTHING BACK AT ALL?
I didn't mention bailiffs but not sure if credit companies even bother for credit card / loan debts of these values? Even so, just ignore them too?
By the way - It was nice to see a lot of the old people on here when i did my IVA 8 years ago!
If everything went your way and you had nerves of steel -- it might work. The loans, however, would not be defaulted, just left showing arrears for ever.There is no time limit on undefaulted accounts showing on your credit files. Bailiffs can be quite persistent, and some not so adherent to the "rules of enforcement".
You would be unable to change insurance companies or utility companies, as you will fail the credit check. When your tenancy agreement expires you will be unable to rent through any agency or private landlord who credit checks through the landlords hub. Some employment will no longer be open to you.
You would be unable to change bank accounts for any but the basic accounts. During time some of the toxic debts would be sold to, sometimes, less scrupulous collection agencies and several debts could then be combined, making one creditor more likely to put some effort into collection.
Have to say I agree with Foggy - the idea is to pay back as much as you can and not ignore letters or calls - it can only harm you in the long term.
Like an Ostrich burying it's head in the sand, you can ignore everything about you but your 4rse is still vulnerable.
You also run the risk of being made bankrupt.
Someone once told me he did this, stopped paying and it all dropped off after 6yrs. When I looked at the public insolvency record he was on there, with an old IVA unsettled. I suspect from what I was told, that he set up the IVA then did a bunk on them and allowed his new partner to take on all their credit moving on, as they bought a home. He is no longer listed as insolvent so maybe he had to face it in the end.
The risk is being pursued by creditors - bailiffs, assets sized, and Bankruptcy.