How Long Between Defaults & CCJ

BIG_D_6 · 28 September 2005 at 10:37PM

Hi Everyone,

Hope someone in the know can advise me, I have debts in excess of £105,000 mainly credit cards and a loan. They will all be 4 months down next week as I have not been able to draw a salary from my company during the last 5 months. The house is on the market and depending on the sale price will give me approx 60 -70k allthough this is joint with my wife who has none of the credit in her name except the mortgage which has not been allowed to slip.

I have ignored the letters and the calls in the last 3 months to fully focus on getting the business firing which is looks like it will but have now received 3 default notices.

I am hoping to sell the house before christmas and repay as much as possible but believe that the lenders can get a order on your property to repay the money on the sale, I would rather be in the position to make the choices of who gets what and leave myself the option of sequestration if things do not work out.

I really need to stretch things out as long as possible in order to give me the greatest chance of getting back on track

Questions :

How long from defaults to court action and ccj.

Can creditors obtain an order against your property for unsecured debt?

If I do become sequestrated will my wife recieve half the equity in the property.

Many Thanks

BIG D

Ps I live in scotland, Can anyone recomend a scottish company who i can properly discuss my options with.

garyclay · 28 September 2005 at 11:35PM

I'm no expert on law, especialy Scottish law. However, an unsecured debt is just that. They cannot use your assets to repay the debt so the house is safe. But I'm unsure of your exact circumstances and what these debts are.

The time between default and CCJ depends company to company but by ignoring the problem you are not helping yourself. Talk to your creditors and explain the situation. They may be able to help.

A default is bad, a CCJ is very bad. If you are selling your house do you never want to buy a new one as I can guarantee that you will seriously struggle to get a mortgage or indeed any credit for some time if you continue to bury your head in the sand.

Unsure of sequestrian(bankruptcy in england/wales) as this is a strictly scotish procedure however as far as bancruptcy goes if there are joint owners, the beneficial interest is usually an equal share of the value.

Payplan is a free service for consumer credit for the whole UK, but if these debts are company related you'll have to pay a solicitor.

fubar_2 · 29 September 2005 at 12:52AM

Even with unsecured debts they can still apply to the courts for a caution order on your property, this is then flagged on the land register details and I believe that when you try to sell your house the companies that applied the caution on the property get notified of the pending sale, as to this then allowing them to apply to the courts again on the basis of you having additional funds available after the sale of the property for them to get some of it I really don't know.

What I do know is that I had a caution on my property and it made a nightmare of trying to get additional funds from the capitol of the property until the cation was removed (this was from a debt of over 10 years ago that I had completely forgot about) and coincidently as I applied for additional borrowing i then suddenly started getting requests from the company asking for payment....strange how i never heard from them for a number of years then when I go to borrow more money they suddenly wake up.

Dont ignore your creditors you should really be talking to them and comming to some form of arrangment because you really do not want it to go so far that you then end up with CCJ's they will screw you up for the next six years of trying to get credit again.

garyclay · 29 September 2005 at 8:25AM

Seriously unlikely they will touch the house, you have no judgements against you! Even then they would have to prove they have exhausted every other method this would take years as it did with fubar! Although once it is paid you would be expected to split your half of the equity proportionaly between your creditors.

I think a 10 year old debt is a very different case to this! There's no need to worry about your home. But do please contact your creditors or one of the advice lines and help yourself! If you continue to ignore the problem you are giving your creditors ammunition if they do take you to court.

johnny2 · 29 September 2005 at 9:08AM

hi there

sorry to be the beared of bad news. just sold my house in england . owed nationwide £1500 which was deducted by my solicitor. read in daily mail couple of months ago that this can be done.

garyclay · 29 September 2005 at 3:10PM

Sorry fubar!

Looks like I'm behind the times here! Just done a bit of reading up and it seems creditors are increasingly moving to this dubious technique applying for forthwith judgements, making the whole outstanding amount payable and then apply for Charging Orders when it can't all be paid.

This may be the beginning of the end for unsecured debts as if they are allowed to do this in the courts you are gonna end up losing out when you sell the house. No doubt you can't remortgage either???

I see that the general trend for the time being is to apply for CCJ, if the debtor does not claim within 14 days they go straight for the jugular and apply for a charge on the property!

I am astounded that this is how things are moving!!!

johnny2 · 29 September 2005 at 8:29PM

Hi, I didn' think they could do this either. Perhaps better to sell quickly, if you wait then presumably all your creditors can claim every penny. Makes a mockery out of unsecured loans. How are they getting away with it. Anyway all the best.

johnny2 · 29 September 2005 at 10:31PM

just a thought,

previousl thought oF legging it and sod them. was acused of 'fraud' 'shame of you' etc. Where is the same of taking on a loan unsecured - joke - only to find it's not!!!!! LET OTHERS KNOW OF THIS - YOUR UNCESURED LOAN CAN COST YOU YOUR HOME.

How Long Between Defaults & CCJ

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