A few legal questions...

sgx.saint

Evening everyone.

Hope you are all well :beer:

I have a few of questions I need answering and I know you lovely DFW people will be able to help me.

First one is about CCJ's. Is there a lower limit in relation to how much debt is owed before a creditor can apply through the courts for a CCJ?

Example: A debt of £300. Could a CCJ be obtained by a creditor for an amount this small?

Example: A debt of £2000. Could a CCJ be sought for an amount such as this?

The reason I ask is I am sure I read somewhere a while back about a CCJ can only be applied for if the amount owed is greater than £750. So, I just wanted some clarification regarding this.

Also, the same question, but this time in reference to Bankruptcy. If a creditor attempted to petition for your Bankruptcy, is there a minimum balance before they can do so? .... Same examples as above.

Also, my understanding of the law/rules is that if a petition for Bankruptcy was made, you would have a chance to 'defend' against it. For example, if you were making pro-rata regular payments to all your creditors, had open communication with them etc. I assume the judge would then set asside any motion as it would be clear that you were paying what you could and bankruptcy would not prove to be the best option. It is as they say, a last resort.

Is my thinking right in relation to bankruptcy?

Finally, does the same apply to a CCJ? ... My belieft again was that you could request a CCJ to be set asside/defend against it if you can prove you have been and are paying what you can to the creditor already. Therefore nullifying the need for a CCJ?

I appreciate any input on my questions. :j

CLAPTON

my understanding is as follows:

for CCj there is no minimum so yes you could be summons for £200

bankruptcy the minimum is 750.

you can defend a CCJ and a bankruptcy.

it is very likely that a judge would make you bankrupt if you had assetts that could be used to repay your creditors (i.e. a house with equity) even if you were paying prorata payments.

if you have failed to make the contractual payments it is very likely that a judge would issue a CCJ. The judge would make an order about how much you need to pay per month.

i'm afraid to say that broadly speaking i would say that most of your assumptions are incorrect.

CLAPTON

forgot to add
please dont frighten yourselves about the worst possible situations. its usually more important to consider what is LIKELY to happen than what could possibility happen.

if you have a specific situation in mind why not air that here and maybe other people will have an experience to share

sgx.saint

Thanks for the reply.

I have no specific situation or problem. I just wanted to refresh my knowledge in this area.

I am on a self managed DMP and have been for over a year and a half. I have no assets of any type and have been making regular pro-rata repayments for the entire duration.

Personally, I would defend any CCJ or Bankruptcy attempt as unlikely as they would be.

I would be fairly confident of the judge agreeing with me rather than the creditor.

Just handy to know the rules. Thanks for the info!

CLAPTON

for the avoidance of doubt....when i say you can defend yourself i mean you have the opportunity to give your side of the story. however, if the debts are yours and you have in fact defaulted, a judge would almost certainly issue a CCJ.... the judgement would specify the amount to be paid which might very well be what you are already paying but you would have a CCJ.