Should I declare myself bankrupt?

eadesman · 14 February 2013 at 12:43PM

I have a CCJ against my name but I have the ability to pay the full amount (£5000) in less than a month.

Unfortunately, I cannot get the CCJ removed from my credit record. It will take 6 years for that to happen!

Would it be better for me to declare bankrupt, pay the debt then the CCJ will be removed once the bankruptcy is discharged (in less than 6 years).

If it makes any difference, I earn £50,000 per year.

Thanks

Chris

Anondebtadvisor · 14 February 2013 at 12:48PM

Bankruptcy is a process for people who are unable to pay their debts, if you can pay way would you want to go bankrupt?

alastairq · 14 February 2013 at 12:54PM

The CCJ will remain regardless, unless the debt is paid within the restricted time limit.

Can you repay the debt within time allowed?

Or, can you repay the debt anyway, so that the CCJ can be marked as 'satisfied?'

A CCJ on one's credit record is far less of a 'black mark' than a bankruptcy!

And has far fewer far-reaching effects on one's financial abilities in the distant future.

eadesman · 14 February 2013 at 1:00PM

Sorry, I thought I had explained why I was thinking about this.

Yes I can afford to debt.

I am looking for the quickest way to get a 'satisifed ccj' taken off of my credit record.

I assume that a bankruptcy that has run its course is no longer on your record?

Chris

Anondebtadvisor · 14 February 2013 at 1:05PM

The quickest way is to pay the CCJ and then it will be marked as satisfied.

A bankruptcy will stay on your credit file for 6years and as the OP says is far more damaging than a satisfied CCJ

eadesman · 14 February 2013 at 1:19PM

It seems there is no way to get around the 6 year clause then?

What about a consent order from the solicitors which says that if I repay within one month, the court will remove / set aside the CCJ?

Chris

alastairq · 14 February 2013 at 1:24PM

I am looking for the quickest way to get a 'satisifed ccj' taken off of my credit record.

I assume that a bankruptcy that has run its course is no longer on your record?

Chris

As my post above.....unless the debt is paid within the time limits set for a CCJ, then that CCJ remains on one's credit file for 6 years, regardless of when the debt is subsequently paid.

One the debt is eventually paid, then the CCJ is marked as 'satisfied', but remains on the file.

Bankruptcy remains for 6 years from date of petition, regardless [unless discharge is postponed]...then it 'falls off' the credit file.

However, record of the bankruptcy remains in perpetuity in the London Gazette, which is a public record, and is searched regularly by credit checkers.

Also, the BR individual must declare that BR, if ever asked, on a proposal or application.

The presence of a BR in the past also affects whether, and the type, of mortgage one may seek in the future.....and also has an adverse effect on certain insurances.

alastairq · 14 February 2013 at 1:26PM

What about a consent order from the solicitors which says that if I repay within one month, the court will remove / set aside the CCJ?

no

https://www.gov.uk/county-court-judgments-ccj-for-debt/ccjs-and-your-credit-rating

eadesman · 14 February 2013 at 1:30PM

alastairq wrote: »

no

The court paperwork was sent to my previous address so I never actually got a chance to pay within one month.

I don't know if this will be a good enough reason to get it set aside AFTER I've paid the debt, the solicitor said they won't object to this but they will say that they sent it to my 'last known address' and therefore did nothing wrong.

Maybe it's time to join the French Foreign Legion?

eadesman · 14 February 2013 at 2:30PM

I've just spoken to the solicitor.

She says I should apply for a set aside and she won't object as long as I pay the full balance off within 14 days of the set aside being granted (assuming it is granted).

The only issue is, the CCJ was filed over 6 months ago and the original debt collection process started around 2 years ago. The Judge will not appreciate that I have left it this long.
Also, It is kind of my fault that they sent the paperwork to the wrong address. I told them that I don't live at the address they had on record so they looked for a previous address.

These two reasons could make the judge throw my application out although I'm hoping that the fact that the solicitor is not objecting will help me out!

Is my set aside likely to be granted in this case?

Thanks
Chris

alastairq · 14 February 2013 at 3:02PM

hi...........no idea!

However as long as the debt has been paid, the presence of the CCJ on your credit files [which seems to be the important thing to you?] really won't matter as much as you think, perhaps? As long as it is marked as 'satisfied?'

Should I declare myself bankrupt?

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