Should paid CCJ's last 6 years?

Gmac2011_2

I wonder what you think of this.
I can't understand why there is not a scheme to help those who really want to get their life in order after a CCJ or default.
At present all CCJ's and defaults remain for 6 years paid or not. (Unless paying a CCJ in the first month)
If made Bankrupt it is possible to apply to be discharged after 1 year. Slate clean.
I appreciate there are habitual debtors, who can't handle money,
but there is no incentive to pay off a debt to clear a CCJ.
Why not have it that a CCJ or default if paid is cleared from the file after 1 or 2 years instead.
I have had 2 CCJ's the first for £56 in 1996 I cleared in the first month but the second for £273 after 6 months yet had to wait another 66 months before it went.
I think that is wrong and 24 months is plenty.
I could have left the bill unpaid for the 6 years and achieved the same.
Any thoughts?..........
Gmac

HappyMJ

You still would have owed the money.

A bankruptcy order will stay on a credit file for 6 years.

There has to be a time and if it were 24 months then you would see a lot more people opting not to pay debts.

Tixy

Gmac2011 wrote: »

I wonder what you think of this.
I can't understand why there is not a scheme to help those who really want to get their life in order after a CCJ or default.
At present all CCJ's and defaults remain for 6 years paid or not. (Unless paying a CCJ in the first month)
If made Bankrupt it is possible to apply to be discharged after 1 year. Slate clean.
I appreciate there are habitual debtors, who can't handle money,
but there is no incentive to pay off a debt to clear a CCJ.
Why not have it that a CCJ or default if paid is cleared from the file after 1 or 2 years instead.
I have had 2 CCJ's the first for £56 in 1996 I cleared in the first month but the second for £273 after 6 months yet had to wait another 66 months before it went.
I think that is wrong and 24 months is plenty.
I could have left the bill unpaid for the 6 years and achieved the same.
Any thoughts?..........
Gmac

No, the slate it not clean after 1 year, whilst its true that the majority of people are discharged after 1 year - if you are made bankrupt it stays on your credit file for 6years from the date of the bankrupty order.

The incentive to pay off a CCJ is that is it marked as satisfied so anyone looking at your credit file knows you no longer owe the money - and it prevents further action being taken (such as bailiffs, attachment of earning etc)

Gmac2011_2

HappyMJ wrote: »

You still would have owed the money.

A bankruptcy order will stay on a credit file for 6 years.

There has to be a time and if it were 24 months then you would see a lot more people opting not to pay debts.

I didn't mean if debts were NOT paid, than of course they should stay 6 years. I meant if they WERE paid.
Sorry for the confusion.
GMac

Gmac2011_2

Tixy wrote: »

No, the slate it not clean after 1 year, whilst its true that the majority of people are discharged after 1 year - if you are made bankrupt it stays on your credit file for 6years from the date of the bankrupty order.

The incentive to pay off a CCJ is that is it marked as satisfied so anyone looking at your credit file knows you no longer owe the money - and it prevents further action being taken (such as bailiffs, attachment of earning etc)

Thanks for that, and sorry I got the Bankruptcy wrong. OK a CCJ may be satisfied, but it STILL remains, and it is still difficult to obtain credit again until it is removed.
We all know that unless for a large amount often sending in bailiffs is a waste of time and many are on benefit having lost a job,
The point I was making is a debt satisfied has little if no merit when looked at by most mainstream lenders.
GMac

YorkshireBoy

Gmac2011 wrote: »

The point I was making is a debt satisfied has little if no merit when looked at by most mainstream lenders.

Do you have a reliable source for that statement, or is just based on your personal experience/opinion?

Somebody who pays their bills (eventually) is always a better prospect than someone who doesn't surely?

Regarding defaults, there is sometimes a case for not paying, if you're unable to do so straightaway or in the early years. This is because the record remains on your credit file for 6 years from the last activity (and satisfying a default counts as 'activity').

bris

YorkshireBoy wrote: »

Regarding defaults, there is sometimes a case for not paying, if you're unable to do so straightaway or in the early years. This is because the record remains on your credit file for 6 years from the last activity (and satisfying a default counts as 'activity').

But you do run the risk of the Bailiffs chasing you if you don't pay, or at least make arrangements to pay. This can add hundreds to the debt for Baillifs fees.

Thrugelmir

Gmac2011 wrote: »

The point I was making is a debt satisfied has little if no merit when looked at by most mainstream lenders.
GMac

From a risk management perspective it does.

Tixy

YorkshireBoy wrote: »

Regarding defaults, there is sometimes a case for not paying, if you're unable to do so straightaway or in the early years. This is because the record remains on your credit file for 6 years from the last activity (and satisfying a default counts as 'activity').

A defaulted record always drops off your file 6years from the default date regardless of when or if the debt is paid. If you pay up 4years after the date of default then is still only stays on 2 more years not a further 6

RobertoMoir

Gmac2011 wrote: »

I didn't mean if debts were NOT paid, than of course they should stay 6 years. I meant if they WERE paid.
Sorry for the confusion.
GMac

You don't think a potential lender should know that other lenders have recently had to resort to court orders to get their money back from a borrower?

That doesn't seem too unreasonable to me, if I'm being honest.

Gmac2011_2

RobertoMoir wrote: »

You don't think a potential lender should know that other lenders have recently had to resort to court orders to get their money back from a borrower?

That doesn't seem too unreasonable to me, if I'm being honest.

No it doesn't seem unreasonable but sometimes as in MY situation , I was doing fine was taken seriously ill,(cancer) lost my job, couldn't deal with any correspondence, until I came out of hospital, by which time I had accrued a £273 CCJ, which I paid off 6 MONTHS after it was issued after getting back into work,
BUT I had to wait another 66 months before this came off my file, and although my credit history (35 years), before this had been excellent, all bills paid on time, I was unable to get ANY other credit.
This is why I brought up the idea of having a PAID CCJ removed after 24 months and not have to wait nearly 6 years. I was penalised so harshly when circumstances over which I had NO control took over,
and had NO recourse to state the reasons.
Entering a statement on my Credit Files made ABSOLUTELY NO DIFFERENCE.

The comments made I understand, but some have adopted a similar approach to the Credit Companies, i,e. a blinkered view.
GMac