minimum CCJ payment for £5K loan ?

barshamhillbilly

Hi All

We have a single unsecured debt of £5000 that was bought by Apex last year and have been paying only £1 month for 12 months. I have just offered £15 month from next month after some squeezing of our outgoings. I could probably go upto £25 a month at a push at the moment but don't want to dig myself in a bigger hole. I think I can increase this to about £40 a month in April when things (fingers crossed) will be a little easier.

My question is, If they go to court, what is a reasonable amount for the court to accept as a monthly payment, considering I am on a very low income and the figures stated are all I have left at the end of the month after basic expenditure.

The daft thing is I wouldn't mind a charge on the house if it didn't incur interest but wouldn't want a judgement of forthwith payment in case they send the bailiffs instead of going for a charging order. (We have a lot of equity and a very low mortgage - but obviously can't extend the mortgage due to the defaulted loan)

Any ideas ?

Cheers
BHB

Tixy

It would be based on what you can afford, irrespective of the balance. But occasionally if the amount you can afford is so low that it would take a ridiculously long time to pay back then the judge may grant a forwith judgement instead so that the creditor then attempts a charging order.

Alternatively the judge may agree to low payments but then the creditor would try to get a redetermination to secure the debt with a charging order.

I've certainly seen CCJs where the monthly payment is set as less than a tenner of a several thousand pound debt. Certainly seen ones which work out as over 50years of repayments.

I would just try making an offer you can reasonably afford - if thats £15 then go for that, don't put yourself in a position where you offer more than you can afford. And if they do go to court a judge will review and see what he thinks is realistic for you.

barshamhillbilly

Thanks Tixy

So I guess aiming for around £40 per month / 10 year repayment would not be an unreasonable thing to try for when affordable in the new year.

Cheers
BHB