Lost my job recently. Cant afford to pay imminent CCJ

curly_jefferson

Hi guys.

About 5-6 months ago i was told that i may face a CCJ. Nothing was said for a while (no paperwork sent to me) and i thought (naïvely) that it may have been forgotten about. Well today i was told that the case will be going to mediation in a few weeks. The other week i was let go from my job and now i am quite afraid of what might happen.

I was just wondering what will happen if they ask me to pay and i cant afford it? What is the smallest amount a CCJ can take from me?

Thanks very much guys

stator

Have you told the creditor about your situation? Have you offered to pay small amounts towards the debt?

Sam112_2

I'm not sure but from what I've read the CCJ amount will be the full amount of your debt. After its issued you'll be given 1 month to pay it off before its put on your credit file for 6 years. If you offer to pay in installments it automatically gets put on your file for 6 years.

After its issued if they want to force you to pay theyll have to go to court again to try and get it docked from your wages but if you don't have a job obviously they can't.

curly_jefferson

My creditor has told me to ring the courts tomorrow to confirm mediation. I think il have to pay back in installments. I have heard stories (urban myths...?) You can pay back as little as £1 a week!

I think this has been sprung on me quite unexpectedly, it might be worth telling the courts tomorrow..?

Cheers for the help guys

Voyager2002

Mediation means that it does not actually go to court, but both you and the person claiming the money speak with an independent mediator who will help you to reach some kind of agreement.

If that process fails for any reason then the matter returns to the court. The judge then has to decide whether or not you really do owe the money and have any valid reason for not paying it. Assuming that you do owe the money, you can then either pay it off within a month or have a CCJ recorded against you. You may tell the judge about your income and necessary outgoings so that you agree to pay it off at a rate that you can afford. And yes, if you are really poor then a sum of a pound a week might be ordered... but only if you take the trouble to turn up and give an honest explanation to the judge.

Aquamania

curly_jefferson wrote: »

Hi guys.

About 5-6 months ago i was told that i may face a CCJ. Nothing was said for a while (no paperwork sent to me) and i thought (naïvely) that it may have been forgotten about. Well today i was told that the case will be going to mediation in a few weeks. The other week i was let go from my job and now i am quite afraid of what might happen.

I was just wondering what will happen if they ask me to pay and i cant afford it? What is the smallest amount a CCJ can take from me?

Thanks very much guys

If there is no court summons issued, I can guarantee you will not get any CCJ (assuming a court summons isn't issued)

Mediation is a method to avoid court. It can be entered into at any time until the hearing/judgement day.
This means it can be before or after as summons has been issued.

If it fails, then the matter may still end up in court (but only after a court summons has been issued)

First approach if you do not agree with the complaint made against you is to co-operate, but defend the claim.

If that fails, then you need to decide if you really want to risk court (as you may well lose there too, if that is the outcome of mediation)

Whatever stage you are at, if you accept you are in the wrong (or the judge decides for you, as applicable) do tell whichever authority of your financial position.

This will, upon satisfactory verification, be taken account of when agreeing how you need to repay. It may be a temporary arrangement, e.g. until you get yourself a new job which hopefully won't be too long.

(Note that if it does end up in court, if you don't pay the full amount agreed as owing within 28 days, not just the repayment plan, the CCJ will be registered against you for 6 years)

Aquamania

curly_jefferson wrote: »

My creditor has told me to ring the courts tomorrow to confirm mediation. I think il have to pay back in installments. I have heard stories (urban myths...?) You can pay back as little as £1 a week!

I think this has been sprung on me quite unexpectedly, it might be worth telling the courts tomorrow..?

Cheers for the help guys

This would suggest to me that a court summons has already been issued.

I recommend you ask the creditor which court they are referring to, and then get onto that court and find out where your copy of the summons is ... and what you are supposed to be doing, or supposed to have done, about it.

curly_jefferson

Thank you very much for the repsonses and giving me a clear understanding. Lots of really good information here.

I am a little nervous and a bit afraid, but you have provided me with a better understanding of what to expect.

Cheers again guys!