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  • FIRST POST
    eadesman
    Should I declare myself bankrupt?
    • #1
    • 14th Feb 13, 11:43 AM
    Should I declare myself bankrupt? 14th Feb 13 at 11:43 AM
    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
Page 1
  • Anondebtadvisor
    • #2
    • 14th Feb 13, 11:48 AM
    • #2
    • 14th Feb 13, 11:48 AM
    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
    • By alastairq 14th Feb 13, 11:54 AM
    • 4,981 Posts
    • 4,087 Thanks
    alastairq
    • #3
    • 14th Feb 13, 11:54 AM
    • #3
    • 14th Feb 13, 11:54 AM
    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.
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
  • eadesman
    • #4
    • 14th Feb 13, 12:00 PM
    • #4
    • 14th Feb 13, 12:00 PM
    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
    • #5
    • 14th Feb 13, 12:05 PM
    • #5
    • 14th Feb 13, 12:05 PM
    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
    • #6
    • 14th Feb 13, 12:19 PM
    • #6
    • 14th Feb 13, 12:19 PM
    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
    • By alastairq 14th Feb 13, 12:24 PM
    • 4,981 Posts
    • 4,087 Thanks
    alastairq
    • #7
    • 14th Feb 13, 12:24 PM
    • #7
    • 14th Feb 13, 12:24 PM
    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.
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
    • alastairq
    • By alastairq 14th Feb 13, 12:26 PM
    • 4,981 Posts
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    alastairq
    • #8
    • 14th Feb 13, 12:26 PM
    • #8
    • 14th Feb 13, 12:26 PM
    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
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
  • eadesman
    • #9
    • 14th Feb 13, 12:30 PM
    • #9
    • 14th Feb 13, 12:30 PM
    no
    Originally posted by alastairq
    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
    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
    • By alastairq 14th Feb 13, 2:02 PM
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    alastairq
    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?'
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
  • eadesman
    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?'
    Originally posted by alastairq
    I was under the impression that a 'satisfied' CCJ would still impact things like a mortgage application?

    Apparently it can increase the interest rate on any credit you want to obtain.
    • alastairq
    • By alastairq 14th Feb 13, 2:30 PM
    • 4,981 Posts
    • 4,087 Thanks
    alastairq
    I was under the impression that a 'satisfied' CCJ would still impact things like a mortgage application?

    Apparently it can increase the interest rate on any credit you want to obtain.
    Sorry, cannot help from experience there....still got to be better than a BR in the past?
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
  • eadesman
    Sorry, cannot help from experience there....still got to be better than a BR in the past?
    Originally posted by alastairq
    Yes it would be better than that. I didn't realise that is stuck around on your record after it is discharged.
  • izools
    Oh it sticks around for far longer than discharge. Whilst a BR order drops off your credit file six years after inception, a record of the bankruptcy order remains in perpetuity in the London Gazette, which is also often referenced by lenders.

    You also have to declare to a lender when asked that you have previously been bankrupt - for the rest of your life.

    Finally, if you have £5,000 elsewhere to pay the CCJ you wouldn't qualify for bankruptcy anyway - you aren't bankrupt if you can afford your debt!

    Good luck with the set aside
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