Paying Off CCJ and Other Debt

Alcollick

I’m not sure if this has been asked anywhere else but I have a dilemma regarding my debt and a CCJ.

I am in a position where I can pay off the £9,000. CCJ, but not the rest of my £50k debt. Now the CCJ is going to be a stigma on my credit file for another 6 years no matter what and I am hoping over time to be able to negotiate settlements with my other creditors. My question is, do I or even can I try to negotiate a settlement on the CCJ leaving me money to perhaps settle some others or do I pay it in full. I appreciate my credit file will show it as partially settled but I don’t see that it makes much difference as a CCJ is such a bad thing to have on your file partially settled or fully settled is unlikely to make much difference especially considering all the other debt I have. I might as well be totally crap for six years but clear more debt surely?! It’s a bit like trying to polish a turd isn’t it?!!
Any advise would be appreciated thank you.

Tixy

Does the CCJ currently have an order to pay in installments?

Unusual for a creditor to agree to accept a reduced final settlement on a CCJ.

If they do agree to it confirm that they will provide your with evidence that the CCJ is satisfied, so that you can get it marked as such on your credit file.

Alcollick

Thank you Tixy,
Yes I pay £29. per month on just under a £10k debt.
I have recently had notification that a different firm of Solicitors are now dealing with it for Lloyds.
I have no idea if they would accept a reduced final settlement but thought it may be worth a try!

[Deleted User]

Are the other creditors currently receiving less than contractual amounts?

Alcollick

Yes I negotiated payment plans with them all so they all get a percentage of the £200 a month I pay out. It's not much on the massive debt I'll have to be reincarnated to pay it all off!

[Deleted User]

If they're all on payment plans, then paying off the CCJ would be treating that creditor favourably, which you aren't supposed to do.

Alcollick

Oh I see. Should I divvy it up between them then? I know some will accept a reduced final payment and I could be rid of them but I thought getting rid of the CCJ would be the priority.

[Deleted User]

Alcollick wrote: »

Should I divvy it up between them then?

You should really.

Are you actually on a DMP/IVA?

thebritishbloke

I'm no expert in these matters, but would bankruptcy not be a better option in this case? You'll be paying £200 a month for the next 21 years (and that's if there's no interest). With bankruptcy (I'm presuming you don't own your home), you'd be free of the burden and in 6 years time it won't even affect you. I know it's a very big leap but it's a lot of debt.

Alcollick

Bedsit_Bob wrote: »

You should really.

Are you actually on a DMP/IVA?

I've arranged payment with them myself following the instructions on here. I've used companies before and they just took my money and ran so I decided to deal with it all myself.

Alcollick

thebritishbloke wrote: »

I'm no expert in these matters, but would bankruptcy not be a better option in this case? You'll be paying £200 a month for the next 21 years (and that's if there's no interest). With bankruptcy (I'm presuming you don't own your home), you'd be free of the burden and in 6 years time it won't even affect you. I know it's a very big leap but it's a lot of debt.

I have a mortgaged home which I don't want to lose so Bankruptcy not really an option. Things are picking up for me and I should be able to negotiate settlements with them all over time. They have all been sold on the other companies who are eager to accept reduced settlements which I am happy to negotiate myself. It was just really where to start whether its with the CCJ or all of them?!