CCJ advice...please...

zmm123

Hi all,

I am in need of advise/opinions please. We bought our first home two years ago and since then things have gone from bad to worse. We got a CCJ last month due after we complained about some work we had done on the house (long story). We were called by our mortgage company last week to see if we wuld like a mortgage review. They offerred us a much better deal with £3000 on top. Then due to the CCJ, plus some late payments we couldnt have it after all. We are three months behind with a store card and it will take £450 to catch up, that is out of the question. Consequently we are being charged every month and its getting out of hand. In addition, we have missed a couple of credit card payments and they too are behind (£200 to catch up) We have two loans (up to date) and one HP (up to date) We both work and have two small children, are getting all we are entitled to re tax credit ect but we still cannot cope. We are not extravegant at all and earn as much as we can (I qualify in July so will increase income with better job soon)I get paid on Monday and we have the grand sum of £20 in the bank to last till then. I am so sick of all our money being gobbled up every month.

So, our question is this...please dont judge...as we are basically 'black listed' now thanks to CCJ should we default on all? Or do you think one CCJ is not that bad? Are we right in thinking that if we do that then whatever we pay comes off the balance owed? That way we have six years to clear debts and start over. Or do you think that is foolish and downright stupid and selfish of us. In our defence we are not saying that we shouldnt pay it, after all we did spend it although mainly on groceries not clothes or anything we are just so fed up.

We welcome any comments if anyone has the time.

Thanks and hope you all have a great weekend xx

Conor_3

One CCJ isn't the end of the world but your credit record will have a slew of non/late/reduced payments on the cards.

You haven't said what you intend to do in regard to the 6 years clearing debts - could you clarify on that? Are you thinking of not paying everything, save the mortgage, and just getting a string of CCJs? I hope not because you are aware the people who file the CCJs can get an order to have goods seized by bailiffs to satisfy the debt?

Your best bet would be to write to all your debtors, explaining your situation and asking if it would be possible to make reduced payments and also ask if they'll freeze interest. It makes more sense for them to get your money than to have the expense of taking you to court and getting nothing.

KellsBells

Hiya,

In terms of being "blacklisted", I believe that there's no such thing anymore. However, the CCJ will have a very detrimental effect on your credit worthiness, as will the missed payments on your credit cards etc.

It sounds to me like you and I are in exactly the same boat, Both OH and I work full time and have two sons under 5. You can see the state I'm in in my signature, and while I'm sat up at this ridiculous hour, I'm writing to every one of our credit cards and bank accounts requesting details of all charges for missed payments and over limits etc. then I'm going to claim every penny back!! (So far my bank account charges for the last 6 yrs are £4,200, which will clear over half of my debt!!!)

As regards being blacklisted - don't worry about that - just DON'T consider getting any more credit to get yourself out of this rut - it's a downward spiral.xx

Good luck and I'll look out for your posts as to how you're getting along.xx

zmm123

Hi,

Just to clarify by six years I meant that as the CCJ will stay on record for six years (thats right isnt it?) that we are basically screwed credit wise so instead of trying in vain to play catch up with credit cards (store card ring me everyday and have done for the past month, I need £450 to catch up then min payment of £100 per month thereafter) should we default on them. I didnt mean get a CCJ for them all, isnt there a way that they freeze interest and charges and whatever you pay off comes off the balance? Or have I made that up? I realise this will also have effect on credit file but since getting CCJ I don't really care. I also didnt mena that we would simply not pay them. Things have just got out of hand is all.

Thanks for your support x

TAG

You don't say what the level of your actual debt is so it's hard to answer your question.

Can you claim bank any bank charges to help relieve your situation?

As far as the CCJ goes, yes that will stay on your credit file for 6 years. However, if you haven't defaulted on your other payments yet, then remember that the history of your 'missed or late payments' will only show on your credit file for 12 to 24 months depending on which CRA is used.

i.e say you last missed or was late paying in say July 2007 that will only show on your file till July 2008 or July 2009 ish.

Having 1 CCJ but an otherwise good credit history will still leave you open to use some high street lenders should you want to move your mortagae for a better deal at a later date.

KellsBells

zmm123 wrote: »

Hi,

Just to clarify by six years I meant that as the CCJ will stay on record for six years (thats right isnt it?) that we are basically screwed credit wise so instead of trying in vain to play catch up with credit cards (store card ring me everyday and have done for the past month, I need £450 to catch up then min payment of £100 per month thereafter) should we default on them. I didnt mean get a CCJ for them all, isnt there a way that they freeze interest and charges and whatever you pay off comes off the balance? Or have I made that up? I realise this will also have effect on credit file but since getting CCJ I don't really care. I also didnt mena that we would simply not pay them.

He he - Don't think anyone thinks you've made that up!! It's just that defaulting on more is going to screw things up further. Have you posted you SOA yet? There are a lot of people willing to help once you've done that.

Sounds like that store card are harrassing you - You really would be best speaking to the Citizens Advice about them. When you do that, they will help you with writing to your debts and getting them to freeze interest. Card and Loan companies seem to take more notice from them then they would from the general public.

Let me know how you get on.xx

oojakapipi

Hi,

I used National Debtline (freephone 0808 808 4000) who sent me template letters to get charges and interest frozen, they can also help you with a payment plan and sent you a template letter to get the companies to stop phoning you, as it can be seen as harrassment. They are really helpful and will advise you on the best way to deal with each individual company.

Please let us know how you get on.