ccj and renting

shouldbeshot

This might sound odd....but...
I am probably going to have a CCJ within the next couple of months, well I have sent the court paperwork back although contesting the amount as I have paid money towards the debt since they apparently sent the paperwork to the court in May (must have been a delay in getting to me).

Now renting is okay at the moment, I have a tenancy starting with a private landlord in July will be there for at least a year, maybe another year if I decide to stay in the same city for my last year of my degree.

But obviously in two years time I will still have a CCJ on my file (albeit having paid some off) for maybe 1.5k by then.

How do I prepare for this? In two years time I might want to live with my boyfriend in his town....and I'll have a CCJ so.....do I need to save? What do I need to do or start doing now

BitterAndTwisted

Do everything in your power to avoid acquiring a CCJ. You could find renting a property almost impossible without having to pay six months rent in advance, and even that might not persuade some landlords.

shouldbeshot

BitterAndTwisted wrote: »

Do everything in your power to avoid acquiring a CCJ. You could find renting a property almost impossible without having to pay six months rent in advance, and even that might not persuade some landlords.

I don't have much choice in the matter, its for a debt that I managed to get at the start of 2010 for university accomodation when I was having mental problems etc. I've not paid much towards the debt this and last year as I was still recovering and then fell pregnant during this university year. I informed the accomodation people at the start and they said try to pay a fiver a week, and I've managed to most weeks but then some I havent. I didn't pay anything for a month and a half as I had run out of money having paid for hospital appointments and I did inform them I had run out of money.

So their solicitor advised them that a CCJ was the best way to guarantee money but I've offered £1 a month on the form as I can't afford anything else anyway.

So I wil lbe getting a CCJ although national debtline thinks the court will order a stay on it till my circumstances improve. So if I need to save 6 months rent up I will have to do that over the next 2 years somehow

may_fair

So your uni landlord is claiming against you (for unpaid rent?), and their claim is at least part valid, so you'll probably get a CCJ?

As B&T says, do everything you can to avoid getting a CCJ, (offering a £1 a month to settle a £1,500 debt just isn't going to work).

If you do end up with a CCJ, if you pay it within a month, and obtain a certificate of satisfaction, then it won't go on your credit file. Assuming you can't do this, then focus on settling the debt, as an unsatisfied CCJ is worse than one you've paid off, however late.

With a CCJ on your credit file, you'll fail a landlord's reference/credit check, and, if he doesn't automatically reject you, he'll want other assurances, such as providing a guarantor (usually someone who owns their own home, and/or has a relatively high income), or paying six months' rent in advance, and probably a larger than usual deposit.

I would save up at least around eight months' rent, OR find yourself a guarantor who's willing to pay your debts if you default on the rent. It'll also help if you are in stable employment, and have paid off the CCJ.

Another alternative, if your boyfriend has a sufficiently well-paid job to cover all the rent, is that he could rent the flat in his name alone, with you as a permitted occupier.

tbs624

Have you been onto the DebtFree Wannabe Board on this site. Much useful guidance there for those who are in dire straits. If there is anyway at all that you could avoid that CCJ you'd obviously be best doing so. The trouble is that once you have been given a chance to pay in instalments and failed to keep to that agreement (for whatever reason) then your creditor will see a court judgement as the only way forward.

Do you currently have paid employment? Any possibility of temporary work across the summer? If not, are you claiming your full benefit entitlements? Have you any surplus possessions you could flog on ebay etc?

When you return to Uni in Sept make sure you ask about hardship funds and discretionary grants/trusts for which you may be eligible so that you can keep your head above water. Make sure that the Uni pastoral people know about any continuing mental health issues.

shouldbeshot

Hi,

Thanks for the replies.

Yes my uni landlord from my accomodation for 2009/2010 is claiming at it is valid as I only paid 1 installment of the rent plus maybe £600 as well. So just over a third really.

I would try to do everything I can to avoid a CCJ but I have no means! I can't pay £2190 in a month as I simply don't have this. I have to simply focus on settling the debt, I can only offer £1 for 3 months (I have written this in a letter alongside the form I sent back) as I am 36 weeks pregnant, I sent my MATB1 with it as proof if the court wanted it.

With a CCJ on your credit file, you'll fail a landlord's reference/credit check, and, if he doesn't automatically reject you, he'll want other assurances, such as providing a guarantor (usually someone who owns their own home, and/or has a relatively high income), or paying six months' rent in advance, and probably a larger than usual deposit.

I can quite likely stay in the house I start to rent this year for 2 years at least, as I can claim housing benefit as a single parent and also my student finance will cover the extra. My grandmother is a guarantor as she has enough funds to cover my rent IF I defaulted (I have rented a house successfully for the past 12 months through a private landlord who didn't require a guarantor, but the new one does). I wouldn't be able to get the CCJ satisfied before I graduate UNLESS I paid around £100 per month. I plan to offer £50 per month towards the CCJ starting from October, if I have anything left over each month then I'd put it into it but I do have other debts to pay as well. Its possible my grandma might continue to be a guarantor but obviously she is my grandma and that can't go on for years! I would have two landlord references if this next house goes well. I've already paid a couple of months in advance to sort out my summer whilst I get benefits and student finance sorted. I could save up £100 per month as well on top of paying my debt but that would only be £2400 when I graduate. But obviously that offsets paying off the CCJ!! So I don't know whether to do both at once or just try to pay the CCJ off as quickly as possible and then save what I can even if I then end up with meagre savings.

I've taken responsiblity for the debt as I did acquire it, I just need to work out a plan to be able to survive when my degree finishes. The worst thing would be having to move back to my parents as I wouldn't find any work here etc. As for my boyfriend being able to pay the rent himself, thats not likely as he only works in a supermarket and I can't see that changing apart from promotions!

Do you currently have paid employment? Any possibility of temporary work across the summer? If not, are you claiming your full benefit entitlements? Have you any surplus possessions you could flog on ebay etc?

No possiblity of work, I am 36 weeks pregnant! And I have flogged EVERYTHING on ebay to pay for some of my summer rent. So no surplus possessions! Can't sell my laptop, need it for university etc etc. And I am having to spend money on baby stuff. Most of which has been gotten for free but there have been a few expenditures. I think I've probably spent £160 but the rest has been given to me.

I was going to see if there are any charities that help single mums out with grants, although I do feel that my income is actually going to be rather ok so I don't want to be given something when really I might not need it. I know technically I am in "negative equity" but I don't think you can ask for grants because you are in debt!

So I guess I need to know whether I should save and pay off debt orjust pay it off over the next year and then look at saving. I mean if I paid £182 per month the CCJ would be paid off in 12 months (october to october) and then I could save but I do still have some other debts, albeit not as big!

Benji

shouldbeshot wrote: »

I mean if I paid £182 per month the CCJ would be paid off in 12 months (october to october) and then I could save but I do still have some other debts, albeit not as big!

When you do pay off the CCJ, it will be marked as 'settled' on your credit file, BUT it will remain there for 6 years.

shouldbeshot

Benji wrote: »

When you do pay off the CCJ, it will be marked as 'settled' on your credit file, BUT it will remain there for 6 years.

So would this have any affect it being settled or not. I know its usually the case of settled is no better than unsettled but I am trying to work out which way to sort the debts out.

I mean 1 unsettled ccj vs 12 settled defaults

or 1 settled CCJ vs 6 settled 6 unsettled defaults (that where I think I would be in June 2013

Other option is just to try to always rent through a private landlord and have my grandma guarantor me for a while. But say if you live in 3 different places over time and you have a CCJ, would the fact that you had 3 landlord references saying you paid on time have any weight?