HELP!!! CCJ with welcome Finance

katiemc1985

Hi,

I'm a little confused with what i have read on the internet so thought i'd put a post here for help

I've recently done my credit report and wanting to sort out my debts, i've got 6K worth of debts and then i've a CCJ on there from Welcome finance from 2009 for just short of 7K! i originally got a loan for £1000 in 2006 and made a couple of payments to them then lost my job, i was only 22 at the time, useless with money! so by me not been able to afford payments back and ignoring them, they issused me with a CCJ in 2009, the CCJ is now an attachment of earning of £10 each month, i'm going to have this debt for the rest of my life!

What happens after the 6 years on my credit file, do i still have to continue to pay the debt off, what will happen if i dont, i dont see how they have got to nearly 7K debt from 1k loan!

please can anybody help me? i'm wanting to apply to the court and fight this as it's hanging over me and will be forever, can the court take my side and wipe the debt after 6 years?

Also i have just moved companies and don't want them knowing i've an attachment of earnings, is there a way i can get out of it, can i ask the court if i can pay them direct?

Tixy

Hi and welcome

6 years after the date of judgement the CCJ will fall off your credit file.

You will still be required to continue to pay the debt and your employer will continue to take the deduction from your salary.

I presume you ignored the court papers and didn't put in any defence when they originally sent them to you?

The court won't wipe the debt after 6 years. However if you believe that you do not owe the money, or that the amount they claimed you owed was incorrect you could apply to the court for a set aside hearing.

They will consider setting aside a judgement if the court believes there may be a good case for you to defend against the judgement, i.e. prove that you didn't owe the money to welcome.

In terms of the debt, due to the very high interest rates welcome charged, and the penalties for missing payments then it is very possible that the debt could have escalated to many times what you originally borrowed once you stopped paying them, that said they should be able to explain to you (and the court) how the balance was made up.

Here is a factsheet on setting aside a judgement - it does have a fee so make sure you think you have a reasonable chance of winning first - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=12_how_to_set_aside_a_judgment_in_the_county_court

katiemc1985

Hi,

thanks for the reply, i did receive the papers and i filled out the form and sent them back,. i panicked and just filled it out not really knowing or understanding what it was at the time, then i ended up with an attachment of earnings, i was young and stupid with money, i'm paying the price now,

I need to fight my case, i never recieved any letters, phone calls or home visits from welcome that they say as i didn't live at that address anymore.

I really am stuck with it all, and want it to go away. I'm wanting a mortgage in a few years time but its impossible with this hanging over me!

Tixy

Did you inform welcome of your new address when you moved?
They only need to send out any correspondance to your last known address.

You say you did get the court papers and sent them back - did you admit that you owed the debt or file a defence saying you didn't owe it?

What is your current financial situation now? if you are hoping to get a mortgage soon then are you in a position to increase your monthly payment to this debt?

katiemc1985

i didnt really now what i was filling out and signing at the time with the papers, i didnt know i could argue my case, i was young and didn't understand.

I'm currently trying to sort out my debts, i've got payment plans set up and i'm paying £200 a month out to 11 of my debts which add up to £5879, then i've got this CCJ over me which i don't have any extra money to pay towards it, can i not argue my case in court?

spacey2012

You sound like a candidate for bankruptcy, you get a clean sheet in 12 months.
Not the stigma it once was, 12 months and a clean sheet.
You can save the fees by stopping the payments.
It will wipe the attachment order as well.

Tixy

can i not argue my case in court?

The time to do that was at the original court hearing.

As you replied to the court papers I don't know whether you can apply to have it set aside now (to have your say in court now). You may be able to if you can provide some significant new evidence that casts doubt on the judgement.

If you don't have any new evidence then I doubt a judge would consider rehearing the case.
Perhaps give national debtline a call for advice on whether a set aside claim is likely to be possible after 5years when you did complete the original court papers (their number is on the link in post #2).

Tixy

spacey2012 wrote: »

You sound like a candidate for bankruptcy, you get a clean sheet in 12 months.
Not the stigma it once was, 12 months and a clean sheet.
You can save the fees by stopping the payments.
It will wipe the attachment order as well.

It will show on their credit file for 6years and they will have an IPA of presumably around £210 a month to pay for 3years (depending on their finances but based on them paying that towards debts at the moment)

And will likely make any future mortgage harder to get and more expensive than if they haven't been bankrupt.

It may be an option for you katie but is something not to take lightly and you certainly would need to ensure you understand what it will mean. Have you ever had any advice from one of the debt advice charities?

katiemc1985

how much debt do you have to be to declare yourself bankrupt? I'm in 12k of debt

Buzby

Sadly bring young and not understanding is not an acceptable defence. Your way forward would not be Bankruptcy as it is trough you can walk away from it after 1 year, it will blight your credit file for another 6 (until 2020).

The best way is to approach the creditor and agree a settlement wherever possible. If you are currently paying only £120pa, an offer of £500 in full and final settlement would be enough for them to agree and show the debt as satisfied, it would still drop from your records 6 years from the CCJ.

spacey2012

The debt advice charities are funded by the people you owe money to, the advice is always pay the debt.
You have more than the required amount, a bitter pill, but once swallowed its done.
You need some clever accounting on living expenses and other costs, but there is plenty of help on forums including the bankruptcy forum here.
However once you mention the B word the "charities" drop you like a hot brick as they are not their to help you avoid paying the people who donate to them.

This is money saving expert, not pay your bills and have good morals expert.

Personally I am of the opinion that irresponsible lenders deserve what they get.