Ignored all debts... where do I start now...

rising_from_the_ashes

KateC wrote: »

Defaulted on 23.12.2005 for £2321.00 but it says balance is £2721.00
Defaulted on 10.02.2006 for £3958.00 but it says balance is £4037.00
CCJ for £2576.00 on 30.01.2006
CCJ for £295.00 on 13.09.2006

OK, so most of these will fall off your credit file pretty soon:

The defaults will fall off in December this year and January 2012 so the good news is that these will be gone soon - providing CCJs aren't issued.

They are quite high amounts (if they'd been for say the £295 the 2nd CCJ is, I'd have said def pay) so it's up to you & a calculated risk to leave them and hope a CCJ isn't issued.

The 1st CCJ also goes in Jan 2012 but the 2nd will be there until Sept 2012.

As the 2nd CCJ is for a relatively small amount (and it's obviously going to be there the longest), it may be worth paying the £295 so it's shown as "settled". Once the others "fall off", this will make your credit file look much better (but not guarantee you'd get credit).

Others may have different thoughts ..... so hang on and see what they say.

rising_from_the_ashes

Kwaka - I'd suggest starting your own thread (choose "new thread" at the top of the board) and you'll get loads of help and advice.

KateC

If they were your debts, would you take a chance and just wait ?
If I just wait, I might still be issued with CCJ, right ?

what does it mean to have a CCJ ? Will it ever disappear ?

If I do decide to pay it all off, do you think they would let me pay in small instalment ?
If I start paying back, when will my credit rating improve ?

Oh \god, I wish I had started this years ago ...

kwaka12

KateC,yes sorry,as ashes has pointed out,I should not be airing my problems on your thread,but I wish you all the very best,and hope you get it sorted.

KateC

Thanks Kwaka12. Good luck to you too.
See you around and let's sort out those debts

rising_from_the_ashes

Kwala - it just makes it easier to keep track of things....

eyeopener2

Sit tight on the debts and await the six year statute period. The ccj you will always have but one the 6 year period has passed then the company concerned will have to make an application to court to reinstate it and have a good reason for not collecting on it before now. This will drop off your credit file though so no one will know about it if you apply for further credit.

The two other defaults, if you get past the six years then that is that. The companys can ask for it back but you don't have to pay it.

All this of course depends on your own moral judgement, ie can you live with the fact that you still owe the money but can't be taken to court for it. Me, personally, can live with that.

E2

rising_from_the_ashes

KateC wrote: »

If they were your debts, would you take a chance and just wait ?
If I just wait, I might still be issued with CCJ, right ?

Yes, you could still be issued with a CCJ.

I can't advise you whether to take the risk or not .. it has to be your decision.

It's weighing up the fact that they are both fairly large amounts and that Default 1 will fall off in just over 2 months and Default 2 in 4 months (just realised this is Feb 12 not Jan - sorry read wrong earlier) against the chance of a CCJ being issued.

I don't know how often CCJs are issued late in default periods / when they're about to fall off - hopefully someone like Fermi or Tixy will be around later as they're really knowledgeable (as are others - no offence to anyone intended:o).

KateC wrote: »

what does it mean to have a CCJ ? Will it ever disappear ?

Have a look at this for info on CCJs http://webarchive.nationalarchives.gov.uk/+/www.direct.gov.uk/en/moneytaxandbenefits/managingdebt/courtclaimsandbankruptcy/dg_10013083 (I take it you never received / didn't complete & return any paperwork?)

They will fall off after 6 years from the date they're issued.

Again CCJ 1 is due to come of fairly soon so it's a similar scenario to the 2 defaults (although they are def gone after the 6 years - nothing else can happen).

However, if it were me (and this is only what I'd do based on my own circumstances) - if I could afford to pay CCJ 2 (£295), I would do so for 3 reasons: a) it's a small amount and from what you said earlier, you'd be able to clear this b) it will stay on your report the longest (over 6 months after all the others have disappeared and for nearly another year) and c) a "settled" CCJ will look much better on your report once the other defaults/CCJ have gone.

HTH

BobQ

KateC,

People who are owed money generally resort to a CCJ when there is a realistic chance that the legal action will succeed in recovering the money. It costs money to take legal action (which can be added to the debt) but whatever the court does if they cannot enforce it there is not much point in pursuing it. It appears that you have almost served your time in the wilderness (in terms of the 6 years) and they are not pursuing you because they cannot find you.

If you cannot afford to repay these debts and feel no moral obligation to do so, a cynical view would be to wait another year and do nothing to draw their attention to the matter. However, you may have given fresh impetus to them by searching your records (not sure). But if you can now afford to pay back your debts and want to clear them my advice is:

(a) IGNORE all commercial firms that claim to help you clear CCJs or otherwise solve your debts, they are usually in it to make a profit and can just make things worse.

(b) get advice from a reputable independent charity that specialises in debt advice such as the Citizens Advice Bureau, National Debtline, etc. Have a look at the following Government website for advice and links to such advice sources.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/PlanYourWayOutOfDebt/DG_187500

They will probably help you broker a deal with those you owe money to so that you can pay what you can afford via a vuluntary agreement.

Good luck

KateC

eyeopener2 wrote: »

Sit tight on the debts and await the six year statute period. The ccj you will always have but one the 6 year period has passed then the company concerned will have to make an application to court to reinstate it and have a good reason for not collecting on it before now. This will drop off your credit file though so no one will know about it if you apply for further credit.

The two other defaults, if you get past the six years then that is that. The companys can ask for it back but you don't have to pay it.

All this of course depends on your own moral judgement, ie can you live with the fact that you still owe the money but can't be taken to court for it. Me, personally, can live with that.

E2

Thanks everyone.

The more I read, the more confused I am.

I can definitely live with the fact that I owe money, as long as it is guaranteed I will never be able to make me pay and as long as my credit rating doesn't continue to get affected. Well done on reducing your debt by so much. I don't know how is it possible to repay so much in such a short time.