Insisting on CCJ
freccle
Posts: 770 Forumite
I unwittingly signed as guarantor on a loan for
my partners business (he knew what I was signing but didn't tell me cos he
knew I wouldn't sign) - I thought I was signing for a bank account as
company secretary. I resigned only about 8 weeks afterwards. Until he was
ill of course it was paid and I knew nothing about it but now it's not being
paid they're taking me to court for it . Of course this has caused personal
problems on top of everything else but the guy has cancer - what can I do??
He has no money and no income now. If I go to court, could I end up with a
worse case scenario. They have said, in writing, that they would not "ask
for an order to sell and would not look to enforce the charging order". I offered them, without prejudice £1000 now and £6000 in July (a pension windfall) if they will agree to a Tomlin order but they have replied that they won't accept this and want me to agree to the county court judgement and the charging order. I obviously don't want the CCJ and much as it galls me to, I'll accept liability if I can get it sorted but it seems they won't give an inch. Could I make it worse if I go to court? If I pay for a solicitor, the fees will have to comeout of the £7000 I've offered them
my partners business (he knew what I was signing but didn't tell me cos he
knew I wouldn't sign) - I thought I was signing for a bank account as
company secretary. I resigned only about 8 weeks afterwards. Until he was
ill of course it was paid and I knew nothing about it but now it's not being
paid they're taking me to court for it . Of course this has caused personal
problems on top of everything else but the guy has cancer - what can I do??
He has no money and no income now. If I go to court, could I end up with a
worse case scenario. They have said, in writing, that they would not "ask
for an order to sell and would not look to enforce the charging order". I offered them, without prejudice £1000 now and £6000 in July (a pension windfall) if they will agree to a Tomlin order but they have replied that they won't accept this and want me to agree to the county court judgement and the charging order. I obviously don't want the CCJ and much as it galls me to, I'll accept liability if I can get it sorted but it seems they won't give an inch. Could I make it worse if I go to court? If I pay for a solicitor, the fees will have to comeout of the £7000 I've offered them
There will always be:
A “LIE” in BELIEVE, an “OVER” in LOVER, an “END” in FRIEND, an “US” in TRUST , and an “IF” in LIFE
A “LIE” in BELIEVE, an “OVER” in LOVER, an “END” in FRIEND, an “US” in TRUST , and an “IF” in LIFE
0
Comments
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Is this a small claim? i.e. less than 10k usually. If so, each side bears its own costs and you won't make things worse by defending.
With regard to defending the claim, what grounds would you have? How did you sign 'unwittingly' - did they transfer your signature on to a document you didn't sign?
In the event of a ccj, you need to know about charging orders and orders for sale - read this
http://debtcamel.co.uk/charging-order-sale/0 -
yes its the small claims court. No, I was told that I was signing for a bank account and we were in and out of the bank in less than 15 minutes. I realise this was my own fault and I realise I shouldn't sign anything without checking it.
Given a couple of months, I could probably pay this off, - at least the majority of it, but Ascen Legal seemingly won't consider it. I thought that if I attend the court hearing even if a CCJ was awarded it would take longer than if I just email them tomorrow and say ok I agree. That would give me time to get some money together.
Would the court automatically award a CCJ if I’m found liable?There will always be:
A “LIE” in BELIEVE, an “OVER” in LOVER, an “END” in FRIEND, an “US” in TRUST , and an “IF” in LIFE0 -
It's not clear at what stage the claim is - if 14 days after the service date has not yet passed then you can still respond.
If you accept that you are liable and can pay this off in a 'reasonable' period (courts usually view this as 36-60 months) then you can admit the debt on the claim form and get an instalment order. No need for a hearing usually.
https://www.nationaldebtline.org/EW/factsheets/Pages/replyingtoacountycourtclaim/replyingtoaccj.aspx
However, this won't stop a charging order
https://www.nationaldebtline.org/EW/factsheets/Pages/countycourtchargingorders/chargingorderadvice.aspx0 -
the court hearing is on 9 June, less than 2 weeks. I'm willing to pay it and have offered a payent plan but they won't accept anything less than a ccj which will destroy mt realtively good credit rating. If I go to court is there a chance that the court will force them to accet the payment plan?There will always be:
A “LIE” in BELIEVE, an “OVER” in LOVER, an “END” in FRIEND, an “US” in TRUST , and an “IF” in LIFE0 -
Yes, if you can demonstrate that you can afford the instalments you are proposing the court should make judgement that you pay in those instalments.
That won't prevent a charging order as that factsheet explains.0 -
If I go to court is there a chance that the court will force them to accet the payment plan?
Yes, as FB says, but it will still mean a CCJ being recorded against you.
To prevent that you would have to get the claimant to withdraw or suspend proceedings, or if it goes to judgment pay it in full within one calendar month of the eventual judgment date.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
Hi
It sounds like the claimant wants the added security a charging order would bring, which I presume is why they rejected your Tomlin Order proposal. Just to clarify, if you do end up with a CCJ and then a charging order, the charging order would be removed once the CCJ is fully paid off. You would still end up with a CCJ unless fully paid within one month though, as Fermi says.
One thought I had is that you could try proposing a Tomlin Order with payment terms but also offer a voluntary charge against your property, to be removed once the debt is fully paid. That way you avoid a CCJ, get to pay by instalments and the claimant gets the security they seem to want. I would suggest that you take legal advice before making such a proposal to make sure there aren’t any terms which are unfavourable to you.
James
@natdebtline
We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
I refused their offer of a charging order backed by a CCJ - I reckon that by going to court, that would be worse case scenario. But then I got a very conciliatory letter from them saying that they were not being awkward by refusing my offer of payment it was the way I was going to get the money that they couldn’t accept. (I have my mums jewellery to sell). So I’m going to write to say my daughter is willing to give me the money (she is) as the house will pass to her anyway and see if they accept thatThere will always be:
A “LIE” in BELIEVE, an “OVER” in LOVER, an “END” in FRIEND, an “US” in TRUST , and an “IF” in LIFE0 -
I refused their offer of a charging order backed by a CCJ - I reckon that by going to court, that would be worse case scenario. But then I got a very conciliatory letter from them saying that they were not being awkward by refusing my offer of payment it was the way I was going to get the money that they couldn’t accept. (I have my mums jewellery to sell). So I’m going to write to say my daughter is willing to give me the money (she is) as the house will pass to her anyway and see if they accept that
don't tell them anything.
your financial business is your own, regardless of a ccj only a court can ask you about your finances etc.
get the money say you have managed to get it via other means..and leave it that.0 -
Yes I would have thought that. anyway a tomlin order has been drawn up so I'm signing and returning it today and hopefully this will be history in a couple of months. Thanks everyone for your adviceThere will always be:
A “LIE” in BELIEVE, an “OVER” in LOVER, an “END” in FRIEND, an “US” in TRUST , and an “IF” in LIFE0
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