On a DMP with Payplan & terrified of getting a CCJ

BrightLights14 · 20 May 2016 at 12:27PM

Hi there,

This is my first post on the forum so I'm hoping its in the right place! I've been on a DMP with Payplan for just over 2 years & it's going well. I have 4 creditors in total, 3 of which applied defaults to my credit file straight away. All froze interest & accepted the reduced monthly repayments though Payplan. I've never missed a payment & have increased my monthly payments a little bit at each annual review.

Nothing's changed but recently I've become increasingly worried that one of them will issue a CCJ. I can't eat or sleep for worrying about coming home & finding the court papers on the doorstep. Am I being irrational? Has anyone been issued a CCJ quite far in to their payment plan or once monthly repayments have been agreed?

Any advice much appreciated

National_Debtline · 20 May 2016 at 12:32PM

Hi

Welcome to the forum.

Although a CCJ is technically possible I really don't think it's something you should worry about. Most creditors tend to be accepting of free DMP payments as they know their getting their fair pro rata share of you money. I don't see why anything should change this far into your DMP.

If one of your creditors had a particular issue with your payments they should discuss it with you first anyway, rather than simply starting court proceedings.

James
@natdebtline

DCFC79 · 20 May 2016 at 12:36PM

I think your worrying over nothing, it's not like your not paying your debts.

BrightLights14 · 20 May 2016 at 12:47PM

Thanks so much for the quick responses - wish I'd asked on here before getting stuck in a Google hole! Thank you

sourcrates · 20 May 2016 at 12:47PM

Hi,

Your worrying about some thing that's never going to happen.

Original creditors rarely take legal action, it would cost them an absolute fortune to take everyone to court, instead we have a system in this country whereby unwanted defaulted accounts are sold to various specialist debt purchasers, such as Lowell, or Cabot, to name but two.

Once sold, (and they buy these accounts for a pittance) they take all rights and privileges under those agreements, and chase you for the full balance.

Now as you are paying down these debts through your DMP, nothing would change as far as you were concerned, payplan would negotiate with the new creditor, as they did the old one, and more than likely the same payment would be agreed upon.

Unless your debts are particularly high, or you had ignored the creditor/DCA, which you haven't, then them taking legal action is about as likely as you coming home tonight and finding brad pitt cooking your tea.

Less than 10% of defaulted consumer credit accounts ever see a courtroom.

BrightLights14 · 23 May 2016 at 4:30PM

Thanks Sourcrates - your reply really put my mind at rest over the weekend. If only Brad Pitt would rock up and cook me dinner

Thank you so much, didn't know how useful a forum like this could be!

BrightLights14 · 6 June 2016 at 10:31PM

Sorry to bring this up again but it's late & I didn't sleep a wink last night so naturally I'm worrying all over again. I just wondered, is there a time limit between when a default is issued and when a creditor can start court proceedings? All my defaults bar one were issued nearly 3 years ago, so I'm hoping time would've lapsed?

Sorry - I have anxiety as both a cause and effect of my debt & im going through a rough patch xx

sourcrates · 7 June 2016 at 9:32AM

BrightLights14 wrote: »

Sorry to bring this up again but it's late & I didn't sleep a wink last night so naturally I'm worrying all over again. I just wondered, is there a time limit between when a default is issued and when a creditor can start court proceedings? All my defaults bar one were issued nearly 3 years ago, so I'm hoping time would've lapsed?

Sorry - I have anxiety as both a cause and effect of my debt & im going through a rough patch xx

Read my post above, creditors normally don't take legal action, they sell the debts instead to debt collectors.

It's then at there discretion on what recovery action to take.

If a creditor wants to take legal action, they can do so at any time after approx 3/6 missed payments on an account.

Coinmachine · 7 June 2016 at 10:56AM

I am on a DMP and have a CCJ in relation to one of the debts, but the reason for this is becaus eI am a home owner so the CCJ was simply to the effect that should I sell my house in future they should be paid back from the proceeds, which would be a small amount of that. it doesnt change anything, and the creditor put in writing that they did not expect me to sell the house rather it was a case of if I decide to sell at any point in the future. I had to fill in a few forms but didnt attend any hearings and now everything is continuing as normal, no affect on payment level.

BrightLights14 · 7 June 2016 at 12:21PM

sourcrates wrote: »

Read my post above, creditors normally don't take legal action, they sell the debts instead to debt collectors.

It's then at there discretion on what recovery action to take.

If a creditor wants to take legal action, they can do so at any time after approx 3/6 missed payments on an account.

Thanks, I did read that but I was worrying again, so wondered if there was a certain time in which they had to issue the CCJ following a default. I guess there isn't.

Only one of my debts has been sold on to a DCA as far as I know, Link Financial. Hopefully it's only this one I need to watch out for then?

Sorry, I know I'm repeating myself, I just feel so trapped in my worries.

BrightLights14 · 7 June 2016 at 12:28PM

sourcrates wrote: »

Hi,

Your worrying about some thing that's never going to happen.

Also, by this did you mean that the original creditors issuing a CCJ is something that's never going to happen, or me being issued one by either the original creditors or DCA, given the payments through payplan have been agreed and accepted, is never going to happen?

On a DMP with Payplan & terrified of getting a CCJ

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