Post CCJ - does the interest stop?

PaulS43

Hello everyone,

I hope I've put this in the right place, if I haven't please accept my apologies, move it to the right place - and pm me so I can find it again for the answers!!!

I've been out of work for a year. In that time, unfortunately, I've not been able to pay all the creditors I owe money to. I have gone through the usual fiscal castration threats along with unreasonable amounts demanded off of me, always backed up with the threat of CCJs (although none have yet materialised). I have tried to pay to the best of my ability but some (not all) of my creditors think they should be treated preferentially to the others and are demanding 3 or 4 times what I have budgeted to give them and are regularly hassling me...

My "credit reference" is shot to pieces by now (not that I ever want any more credit once I have paid this all off and got rid of these parasites) to the point where a CCJ or 2 in amongst all of the default notices, won't IMHO make any difference to me anyway.

I am paying one creditor £20 a month who had offered me 'suppressed interest & fees' a year ago but is now demanding £70 (which I don't have or won't be able to pay anyone else) and is threatening 'imminant court action' AND has decided to start charging me interest again (meaning the debt will grow again because what I am paying is less than the interest). I am hacked off to the back teeth with them because I am paying what I can afford.

Cutting to the quick; What I want to discover is this: *IF* they take me to court and get the CCJ (no doubts there, I owe them the money) does the interest stop? IE. If judgement is for exactly, eg. £3,000, after the formalities of the judge making an order that I pay £x per month (most likely to be the £20) is the only way that £3k balance going to go downwards? Piut another way. Judgement in January "Paul you owe £3k, pay £15 a month", by December, I've paid £180 against the debt, will the balance then be £2820 OR will it be £2820 plus interest????? (I dunno, something like £2820 + say 10% meaning £3102 outstanding come december if I haven't found a job by then??????).

If the money owed, post judgement is "dead" as far as still accruing interest goes, I think I will speed up the process of court by stopping paying now to get them to take me there as I am sick to the back teeth of being plagued with telephone calls and letters covering impending doom and gloom. My reasoning for this iis that I don't think a CCJ on my credit reference will now make very much difference and in any case, I want more credit in the future like another hole in the head!

Thanks in advance for your help

Oh just before I go another question: We own the house and the wife is currently paying all the mortgage which is up to date... They have threatened a charge notice against our house after a CCJ. I understand that this means *if* we sell the house and move any surplus equity must be used to pay them first . 2nd question - can they force us to sell the house for this equity? And if so will leaving my wife (only on paper [I'm lucky - she loves me}) and having her get a solicitor to say we've separated make a difference??

Any opinions and case references would be very much appreciated

Happy New Year

Jamz

creditors are allowed to add interest to a ccj but i cant remember the amount

Avoriaz

You need professional advice from a solicitor, the CAB or the Consumer Credit Counselling Service (CCCS)

Contact the CCCS on Monday morning if you are not already in contact. Their services are free and they are very good.

Here is a link to their web site.

http://www.cccs.co.uk/

They will give you sound advice as to how best to handle your situation.

Good luck

JohalaReewi

PaulS43 wrote:

Oh just before I go another question: We own the house and the wife is currently paying all the mortgage which is up to date... They have threatened a charge notice against our house after a CCJ. I understand that this means *if* we sell the house and move any surplus equity must be used to pay them first . 2nd question - can they force us to sell the house for this equity? And if so will leaving my wife (only on paper [I'm lucky - she loves me}) and having her get a solicitor to say we've separated make a difference??

Any opinions and case references would be very much appreciated

Happy New Year

The CCJ can result in a charge on any of your assets. When the assets are sold, you have to pay off the the debt. In the case of joint assets (like a house), the charge will be on your 'half' of the house. They are not likely to force a sale of the house to get the debt repaid but you should get some expert advice.

Martin suggests:
The three places I’d recommend are Consumer Credit Counselling Service 0800 138 1111, National Debtline 0808 808 4000, Citizens Advice or visit your local CAB centre. The sooner you talk to them the better. It may help you sleep at night.

http://www.cccs.co.uk/
http://www.nationaldebtline.co.uk/
http://www.citizensadvice.org.uk/