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

KateC

rising_from_the_ashes wrote: »

Yes, you could still be issued with a CCJ.

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.

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

So if they decide to issue the CCJ for the 2 default, would I need to wait another 6 years ?

I may have received some letter, in facts lots, but never read/replied to any.

£295 is not a lot so I would pay it off. Would I just need to write and ask to repay in instalments?

Thank you

KateC

BobQ wrote: »

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

I pay bills, council tax, have got a mobile contract etc so I think if they wanted to find me, they would have. I haven't been hiding on purpose. i tried to apply for a bank account and got a credit report so they would have seen my address somewhere I think.
I have no moral obligation but I just need to be sure that whatever I decide to do, will be the right thing as I need to have a good credit rating.

With all these CCJ, do you think there is a chance, that once all sorted, I will be able to get a mortgage one day ?

Thank you

eyeopener2

If the ccjs disapear next year, which they will if nobody approaches you, you will be able get a mortgage as they won't show up on your credit report at all.

Sit tight for a few months and see what, if anything, happens.

BobQ

It sounds like the people you owe money to have accepted they cannot easily find you at the time and decided not to pursue you. They may make another check on you before the records expire and if they see any evidence that you are in a position to pay them might apply for another judgement. But it seems unlikely. I suspect it would be worth waiting until the large ones expire and then pay off the £295, which will then be shown as settled, which is better.

But nothing is guarranteed until they have expired. Have you done as suggested and got credit records from the other agencies who might have other debts recorded, if not do so.

Whether you can get a mortgage is another matter. As ever part of the decision will depend on the % of the property cost you want the mortgage to cover but your credit record will come into it and they are getting stricter. A friend of mine was turned down on an 80% mortgage recently. This was not because she had a bad credit record but because she had no record of managing credit at all, being a responsible person who lives entirely within her means. She was advised to get a credit card, not pay it off every month but demonstrate over a year that she would not get into unmanageable debt. This seems bonkers to me!

KateC

Thanks guys.

You said if they see any evidence that I am in a position to pay them, might apply for another judgement.
I joined a saving scheme at work last year, started saving with the hope of buying a house one day. I thought I could save while I try to sort my debts out.
I have £250 deducted every month before I actually get paid. I will have £9000.00 when I've finished the 3 year saving plan.
Are they likely to find out about it ?

I only got the credit report but not the rating as there is a charge for it.
Should I go ahead and pay for the rating ? Or should I just wait until next year ?

Thanks guys !!!

rising_from_the_ashes

KateC wrote: »

So if they decide to issue the CCJ for the 2 default, would I need to wait another 6 years ?

Yes, the CCJ would remain on your file for 6 years from the date it's issued.

KateC wrote: »

£295 is not a lot so I would pay it off. Would I just need to write and ask to repay in instalments?

If you decide to pay it for £295 and if you've got it, I'd pay it in one go. Once it's settled, you will get a "settled in full" note on your credit file (and obviously if you're paying by installments, this will take a lot longer to happen).

KateC wrote: »

With all these CCJ, do you think there is a chance, that once all sorted, I will be able to get a mortgage one day ?

It will depend on a variety of things - purchase price, deposit, salary etc.

Also, once everything drops off (and your report looks clean) it may be worth applying for a credit card - I've not lost the plot honestly!

This should be used for small regular purchase each month and paid in full each month.

If you've not applied/held credit since your defaults/CCJs there will really be no recent history on your file which can make lenders nervous (as there is nothing to show you can make regular repayments).

Having a credit card, using it regularly (say for your groceries or fuel each month) and clearing it in full shows that you are able to control your finances and provides evidence of this.

KateC wrote: »

Should I go ahead and pay for the rating ? Or should I just wait until next year ?

Don't pay extra for the score - it's only used by that particular credit agency. Each lender will have their own system and make decisions based on what is on your file.

fatbelly

KateC wrote: »

You said if they see any evidence that I am in a position to pay them, might apply for another judgement.

They can't have two judgements on the same debt!

KateC wrote: »

I have £250 deducted every month before I actually get paid. I will have £9000.00 when I've finished the 3 year saving plan. Are they likely to find out about it ?

No

KateC

Thanks a lot guys.

I now just need to decide whether to contact them and offer to pay the 2 defaulted ones, or take a risk and see if I get a CCJ.
Either way I'll have to pay or wait another 6 years if I don't want to pay.
I can not wait 6 years so i guess I've already decided that I need to pay the 2 defaults.

Hope I am understanding this correctly.

fatbelly

KateC wrote: »

Thanks a lot guys.

I now just need to decide whether to contact them and offer to pay the 2 defaulted ones, or take a risk and see if I get a CCJ.
Either way I'll have to pay or wait another 6 years if I don't want to pay.
I can not wait 6 years so i guess I've already decided that I need to pay the 2 defaults.

Hope I am understanding this correctly.

So you're going to ignore the two debts that the court has ordered you to repay, and pay off the two that haven't got a court order associated with them, just in case they do make a court claim.

Hope I am understanding this correctly!

You are aware that if you get a ccj and pay it within 28 days it is not recorded as a ccj on your file?

And that paying off a defaulted debt does not remove the default

rising_from_the_ashes

Fatbelly - is she not too late to do this (the ccj's were issued 5 years ago)?