Please help... so worried about a CCJ

Worried_sick......

Hello everyone,

We faced up to the fact just before Christmas last year that we simply just couldnt afford to repay our unsecured debts (credit cards loan and overdraft) even on the minimum payments required, so we sought advice and entered into a debt management plan at the end of January. All of our creditors have now responded and accepted our reduced minimum payments, the majority of them have also frozen the interest too.

The only one who took over 5 months to respond and has now not accepted is the Royal Bank of Scotland, we owe £23k in a loan and overdraft, under our DMP our administrators have been paying them £171 per month, but they have now come back and said for them to agree to this they require a minimum of £400.50 per month, we have told them we simply cannot afford this even with the best will in the world, and this morning we have received papers from the court as they want to go down the CCJ route.

I am worried to death that the court will enforce the £400 RBS want, even if we jiggle our money as much as we can, we cannot afford anymore than £205 per month. We want to pay our debts, but at this moment in time we are not in a postion to pay the amount they want.

Does anyone if they courts will take into account that we have been making regular reduced payments of £171.18, or will they expect more? I really don't know how it all works and I can't sleep for worrying so much.

Any advice is greatly appreciated.

fermi

Hi.

Have a read through this factsheet.

Replying to a county court claim form

Even if the court initially orders payments at a rate that you can't afford, you can ask them to reconsider.

If you write to the court within 14 days of the order being made, then you can ask for a redetermination hearing where you can put your case for what you can actually afford. There is no fee for that.

If responding after the 14 days, you would have to ask for the order to be "varied". That does cost a fee.

fermi

Redetermination request should you need it. Must be received at the court within 14 days of the judgement date.

The Court Manager



CLAIM NUMBER: XXXXXX



To the Court Manager:

REDETERMINATION UNDER RULE 14.13 CPR

I apply for this matter to be reconsidered (redetermined under Rule 14.13 of the Civil Procedure Rules). Under rule 14.13 there is no court fee to make this application.

I am unable to pay the full Judgment forthwith/instalment as ordered on (insert date of order) and submit that this has been set an unrealistic amount.

I request the Court reconsiders the Judgment. To assist I enclose an up to date financial statement and list of other unsecured debts, which have been provided to me by the Consumer Credit Counselling Service (CCCS)/CAB/National Debtline (delete as applicable).

As you can see my budget shows I have £…. surplus/ £…. deficit after essential living costs and also have (insert number of creditors in total).

Given my circumstances and considering my finances as a whole I am able to offer £…. .monthly instalment and request the court set the Judgment at this amount.

Under rule 14.13 of the CPR it is clear that because the Judgement was granted without a hearing I am entitled to have this redetermined and if necessary transferred to my local county court.

My application is also compliant with the time limit as it falls within the 14 days from the original order.

I look forward to hearing from you.

Yours faithfully,


Name