CCJ whilst unemployed?

Some1

Hello, this is my first post here. I am a bit confused about CCJ's. I am currently unemployed and have debts of just over £5000, one of my creditors has recently sent me a letter saying the will issue a court summons and I may receive a CCJ as a result. I am aware if I was employed and issued a CCJ it would be possible for them to take a payment out of my wages, but what happens if I am unemployed when issued a CCJ? I have very little assets, maybe £500 worth.

Also, I spoke to cccs about a debt relief order as I thought I would qualify, but I was told because I have no income I cant get a debt relief order? I am not receiving any benefits, and the woman I spoke to at cccs told me if I were to receive benefits then I could make a budget and may qualify for a debt relief order.
I dont understand how that works though because surely if I am not receiving benefits and have a zero income I obviously dont have £50 spare income at the end of the month?

Thank you for reading my post and any advice you may have.


Some1

antonic

They may go for a CCJ against you, even though they know you cant pay, out of bloody mindedness AND because they know it will trash your credit record for 6 years after it is granted.

Stepchange (was CCCS) are right, how can you go on a DMP when you have no income ?.

Do you not qualify for any benefits of any sort ?

Some1

Thanks for your reply.
I am not bothered about my credit report for the next 6 years, but what will happen if I get the CCJ while unemployed?

I wasnt talking about a Debt Management Plan (DMP) as that would require them to manage my debts with me making payments which I cant being unemployed.
I meant a Debt Relief Order (DRO) whereby you need to have assets of less than £300, a car worth less than £1000, less than £50 disposable income at the end of the month, and debts less than £15000.

I do not have assets over £300(todays value), or a car, or debts over £15000, and I have zero income so have less than £50 spare each month. How do I not qualify?

I was on JSA for a while but ended up leaving when they said I had to do mandatory work experience in a field that was of no help to me.

antonic

Point taken.

Have you read the guidance here ?

https://forums.moneysavingexpert.com/discussion/1385275

They will go for a CCJ as its cheap and because you have debts that you cant pay.

Some1

I have not read the guidance in that thread but I will do in the morning, thanks.

Ok so if they go for a CCJ and I am unable to make any payment what so ever, what would happen next? Would it stay there forever or eventally be wiped off? Would the debt rise whilst I am unable to make payment? When I find a new job would I just let them know and arrange a viable payment scheme?

Thanks again


Edit:

Would they not try to bankrupt me if I was unable to pay the CCJ? I would rather not go bankrupt, or get a DRO, although I am not bothered about my credit rating for the next 6 years. I dont want this to go on and on though, then say in 2-3 years time I have been in work and paid it all off for it to still be on my record for 6 years after the date I finish last payments?

antonic

If you get a CCJ it stays on your credit history for 6 years.

As you have previously said that your not worried about your credit history it shouldnt bother you BUT if at any time during the 6 years its there , you will find your access to credit severely limited or nil.

Some1 wrote: »

I have not read the guidance in that thread but I will do in the morning, thanks.

Ok so if they go for a CCJ and I am unable to make any payment what so ever, what would happen next? Would it stay there forever or eventally be wiped off? Would the debt rise whilst I am unable to make payment? When I find a new job would I just let them know and arrange a viable payment scheme?

Thanks again

Some1

Ok cheers I understand that. However, if I was to get a CCJ tomorrow, then start a new job in 3 months time for example, would I then have to start making payments towards the CCJ? Sorry for my crappy knowledge in this area.

antonic

Dont worry about asking, we are all here to help !.

If a CCJ is granted against you then the Judge *may* order that you make a payment each month to the debt.

If your circimstances change for the better (or worse), you have a duty to inform the court.

If you get a job you may find that your payments are redetermined upwards by the Court, if your situation gets worse (which as your unemployed and get no benefits) you may find that your NOT ordered to pay anything.

Hope this helps !.

Some1 wrote: »

Ok cheers I understand that. However, if I was to get a CCJ tomorrow, then start a new job in 3 months time for example, would I then have to start making payments towards the CCJ? Sorry for my crappy knowledge in this area.

terryw

Some1 wrote: »

Ok cheers I understand that. However, if I was to get a CCJ tomorrow, then start a new job in 3 months time for example, would I then have to start making payments towards the CCJ? Sorry for my crappy knowledge in this area.

You should obey the county court judgement. If the order is for you to pay a nominal sum per month then this is what must be done. If your circumstances change (like getting a job) the creditor may apply to the court for the payments to be increased - this is not done automatically.

EDIT crossed with post above

fatbelly

You haven't got a ccj. Not even a court claim. What you've got is a threat from a creditor. Everyone gets those. Not many find that the threat is carried out.

Step Change (CCCS) were wrong. Of course you can get a DRO on zero income. There may be questions asked about how you are supporting yourself (Family?) and you will of course have to stay within the criteria for the 12-month moratorium.

So if you're looking to restart work and would then have £50 plus surplus per month, it's not a good strategy for you. Particularly where your creditors are not taking any action against you.