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What happens when a default leaves your credit file?

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UKPublished 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

A default can disappear from your credit file six years after the default date, but that does not automatically cancel the underlying debt. A default, an old debt and a County Court Judgment follow different rules, so identify which one you have first.

Next question: What should you do if a debt is sent to collections after a payment dispute? →

Before acknowledging or paying an old debt, check the default date, whether a CCJ exists and whether limitation may apply; free debt advice can help if the position is unclear.

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A default can fall off after six years

A default on a credit file is not the same thing as the debt being legally cancelled. A default can usually remain on a credit file for six years from the default date, after which the credit-file entry should disappear from the usual reporting period. That is a credit-record rule, not a magic six-year expiry of the debt itself.

This distinction is central to old debts. A lender, debt purchaser or collection agency can still have rights after the credit-file entry disappears, depending on the debt, court action and limitation law.

The default date matters

Look for the original default date, not the date a collection company started writing to you. If the debt has been sold, the sale itself should not create a brand-new default date simply because a different company now owns it. A changed account number can make an old debt look newer than it is.

Keep copies of old credit reports if the date is disputed. A creditor reporting a materially different default date can affect when the entry is due to disappear and may require a complaint.

Credit-file expiry and statute barring are different

In England and Wales, the Limitation Act can limit court action on certain debts, generally six years from the cause of action for simple-contract debts. A written acknowledgment or payment can affect the limitation position in some circumstances. The exact law depends on the debt and where you live.

Do not assume that “six years on the credit file” means “statute barred”. Nor should you assume that a collection letter automatically restarts the clock. Get advice before taking an action that could affect limitation if you think an old debt may be statute barred.

A CCJ is a different problem

If the creditor obtained a County Court Judgment, the judgment is entered on the Register of Judgments, Orders and Fines for six years unless paid in full within one month. Paying later marks the judgment as satisfied, but it normally remains on the register for the six-year period.

A CCJ also changes the limitation position because the creditor has already obtained a judgment. Old CCJs can still raise enforcement questions even when six years have passed, so do not treat the date on your credit file as the whole story.

What about an IVA?

An Individual Voluntary Arrangement is a formal insolvency solution that changes how included debts are dealt with. GOV.UK says an IVA appears on your credit file for six years from the date it starts. The standard protocol can also run longer than five years where home equity is relevant.

An IVA is not a tool to use simply because a default is old. It can have long-term consequences and requires a formal proposal supervised by an insolvency practitioner. Free debt advice is a sensible first step before considering it.

What should you do when a debt purchaser contacts you?

Do not panic because a letter arrives from a company such as Lowell or another debt purchaser. First establish what debt it relates to, who the original creditor was, the balance, the default date and whether court action has already happened. Ask for the relevant information in writing.

If you are considering a payment on a very old debt, get advice before making the payment if limitation might be an issue. The wrong step can make an already confusing situation harder to unravel.

Should you pay an old default?

There is no universal answer. Paying can reduce the outstanding balance and, depending on the account status, lead to a satisfied or settled marker, but it does not normally erase the original default early. If the debt is genuinely enforceable, ignoring it can allow further action. If you dispute liability or think it may be statute barred, establish the legal position first.

Get free debt help before making a major decision

StepChange, MoneyHelper, Citizens Advice and National Debtline offer free debt guidance. This is particularly useful where you have several debts, court papers, bailiff contact, an old default, or you are considering an IVA. A debt adviser can help separate the credit-file issue from the legal and affordability issues.

Worked example

Illustrative timeline: imagine a credit-card account was defaulted on 10 October 2020. Six years from that default date is 10 October 2026.

Default date: 10 October 2020.
Six-year credit-file period: 6 years.
Expected credit-file expiry date: 10 October 2026.

That does not mean the underlying debt is automatically cancelled on 10 October 2026. If there is a CCJ, a different six-year register rule applies. If no judgment exists, limitation law may matter, but that is a separate legal question and can be affected by the type of debt and actions taken during the limitation period.

The example is deliberately simple because the legal position can change with payments, written acknowledgements, court action and the type of debt. Do not use an old debt date alone to decide that a debt is unenforceable or safe to ignore.

Does a default disappear after six years?#

A default can normally remain on a credit file for six years from its default date. That does not by itself cancel the debt. Check the underlying account, whether a court judgment exists and whether limitation law could apply. If you are unsure, get free debt advice before acknowledging, paying or ignoring the balance.

Will paying an old default remove it from my credit file?#

Paying a default does not normally make the original default disappear early. The account can be updated to show it was paid or settled, but the six-year reporting period is generally tied to the original default date. If you are unsure, get free debt advice before acknowledging, paying or ignoring the balance.

What happens when a debt is five or six years old?#

Do not focus only on the age. Check the default date, the last payment or acknowledgment, the type of debt, your location and whether a CCJ exists. Those details can affect both credit reporting and enforcement. If you are unsure, get free debt advice before acknowledging, paying or ignoring the balance.

Is an old default automatically statute barred?#

No. Credit-file expiry and statutory limitation are different rules. In England and Wales, many simple-contract debts have a six-year limitation period, but the cause of action, payment or acknowledgment and any court action can affect the position. If you are unsure, get free debt advice before acknowledging, paying or ignoring the balance.

Is an IVA a good answer to an old default?#

An IVA is a formal debt solution, not a way to tidy up an old credit-file entry. It can have significant consequences and appears on your credit file for six years from the start. Get free debt advice before choosing it.

What should I do if Lowell contacts me about an old debt?#

Ask for the details of the debt and check whether the account is genuinely yours, its default date, the current balance and whether there has been court action. Before making a payment on a potentially statute-barred debt, get free debt advice.

Keep reading

Next question →What should you do if a debt is sent to collections after a payment dispute?

Sources

Figures were checked against these sources before publication. If a rule changes, we update the page and show the new date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.