Defaults and CCJS

ejs123

Hi

If a default has been issued a number of years ago (3yrs), can a creditor still issue a CCJ if they have not done so already? From your experience, how likely is it that they would issue one if they haven't done so already?

What is the best option to deal with defaults in this scenario of old debt?

Many thanks

bottleofred

Hi ejs123,

I'm not 100% sure about the ccj part of your question, but after 3 years would be surprised if this happened (although someone with more knowledge than me will be along soon). Regarding the defaults, they stay on your credit file for 6 years from the date of issue and make it more difficult to obtain credit. Even if settled, it can usually take 2-3 after settling them before getting credit becomes easier.

DarkConvict

They have 6 years (5 in sotland) from the date you last paid or made written acknowledgement of the debt in order to obtain a CCJ. After that it becomes statute barred

ejs123

Thanks for your reply. In view of this, is it better to ignore the debt after 6 years from the default and/ or CCJ has passed? Is it still enforceable?

Also, is it impossible to get mortgages with CCJs/ defaults or just higher interest rates?

Many thanks

DarkConvict

A default is just a mark on your credit file.

A CCJ is a court enforced order for payment. If a CCJ has been granted then the debt has been secured. It will not go statute barred. The statute barred law is a defence against court orders, it won't apply if the CCJ has been granted already.
Even after 6 years after a CCJ has been granted it is still in affect, however the creditor should be required to goto court and explain why they have not used the CCJ. If the creditor can provide proof you avoid paying a CCJ then it will stay in affect. If the creditor was just lazy and didn't use it then its possible the CCJ is removed and the debt does become statute barred.

Impossible to get further credit is a no, its just harder. You get more rejections and high interest rates.

ejs123

Thank you again - I have a few more questions if you don't mind.

If a CCJ is not paid then will it stay on your credit file for ever? Can they reissue a CCJ if you don't pay it?

Also, with regard to the defaults where CCJs have not been issued within 3 yrs, is it likely that a CCJ would be issued? What would be your advice in this scenario if there is no money to pay the defaulted amounts and they were a long time ago?

Many thanks

BigCraigJohn

I think if they hadnt already gone for a ccj after 3 years you'd probably want to ask why.
So if you get court papers make sure you get a copy of the agreement and make sure everythings in order.
From what I gather some dca's will go for ccjs others wont.
I'd just lay low and deal with it as and when.

DarkConvict

They can attempt a CCJ at any time, once you have defaulted on an agreement. They can attempt it after 6 years but you enter in a statute barred defence.

You can never tell when they will come for a CCJ. Although generally its either fairly quickly, or when there is a change of owner or passed to a DCA, or as it approaches the 6 year statute barred debt. I think its a computer system that flags it up.
The CCJ exists to secure a debt, if a creditor does not secure it they risk it becoming unenforceable.

A CCJ like a default will show for 6 years since the date it was added, be it settled or unsettled it will still show.

ejs123

Thanks for all your help DarkConvict.

Would the creditors need to prove that you had been in contact with them/ acknowledged the debt with them within 6yrs in order to obtain a CCJ?

If you do not pay a CCJ, can the creditor keep obtaining new ones so that they will always stay on your credit file?

DarkConvict

Yes,

They get in touch and ask for payment, you send them the statutue barred template on the forums.

They must provide proof it is not statute barred. just saying a payment was made or a letter was written is not enough. They need physical proof like statements of the account showing the funds coming in by you etc.

If they do provide proof you can provide proof their claims are fraudulent if you can say show no money left your account for so called payments.

After 6 years the CCJ falls off, a creditor can how although very rarely does can re-add it to your credit file if its not settled. I've heard of it been possible but never seen it been done. Its still the same CCJ though, its not a new one.

ejs123

Thank you - this has been very helpful.

If you are now living at a different address to the one when you had the account with them (so they can't get hold of you), can they enforce a CCJ after 6 years of you not acknowleding it? Or would they need to prove to the courts that that you've been in contact with them within 6 years?