New CCJ

MS_Dolphin

Hi,

A friend received notice of a new CCJ yesterday for a CC debt. He doesn't think he received any pre-notice of court action - or if he did, didn't understand what he'd been sent.

I don't believe he denies the debt but wants to know if the issuing of the CCJ can be challenged.

If not, he has no idea what will happen now - will action be taken to recover the debt and what will happen to his credit file? He is extremely anxious over this and I don't know enough to advise him. Any help would be appreciated.

Thanks in advance.

Dovah_diva

Not receiving pre-action paperwork and not understanding it are two entirely different things.

A lot more information is needed. For example, does he agree he owes the money? Has he made/breached an agreement with the lender? Has he moved recently? Did he receive any paperwork from the lender or debt recovery company? Did he receive paperwork from the court?

MS_Dolphin

Thanks, most likely didn't understand it and hasn't recently moved. He is not sure about the details because not financially literate, however it is also likely that he did incur the debt.

This is a not untypical case of someone getting into trouble with money and things getting worse because of 'head in the sand syndrome'. I'm trying to get him to deal with it rather than continually ignoring the situation, but don't really have the knowledge to advise.

Dovah_diva

If he simply didn't understand it, and the papers were served correctly, then he has no chance of having the CCJ overturned. He now needs to think about making a payment plan and sticking to it.

His credit file is pretty trashed for six years and there are a number of ways the CCJ can ve enforced, depending on how much he owes. Is it a large debt and is it secured or unsecured? Some of the methods that can be used for collection are attachment of earnings, bankruptcy, he can be ordered to attend court to provide evidence of his income or spending, like bills and statements or the lenders could employ bailiffs.

I would advise encourage him to face up to this and contact a debt charity, such as StepChange, for advice and support.

National_Debtline

Hi MS

In order for the CCJ not to affect his credit file for 6 years, he will need to setle the debt in full within one month of it being entered on the register. The only other way of avoiding such damage is to get the CCJ "set aside" or overturned, but from what you've said it doesn't sound as if he has any real grounds for doing so.

Dovah above refers to possible enforcement methods the creditor could use if the debt remains unpaid. What the creditor does now will depend on a number of things - for example, what they know about his current financial circumstances. It may still be possible for him to apply to at least set repayments at an affordable, realistic level - see this fact sheet:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=08_reducing_payments_or_suspending_a_bailiffs_warrant_on_a_county_court_judgment

The main thing though as Dovah says is that your friend should get some direct advice. It's great that you are looking out for him but he may not have given you the full picture just yet.

Kind Regards

Dennis @NDL