Help with CCJ

Wendibowz

Hi
I'm a newbie to MSE - we have nearly finished a 2 year self build. It was fraught with problems on the financial front, mainly due to cash flow. We took out a number of credit cards during the process as often the stage release mortgage money didn't come quick enough! We always planned at the end of the build to remortgage onto a good base rate deal as we knew our loan to value would be around 50%. Then came the problem- Buildbase (with whom we spent in excess of 60K). We had a 30 day account and paid every month without fail, until one month we just couldn't get the timing right with sign off checks and the building society releasing the money. We kept BB informed but they demanded payment and threatened court action. We simply could not get the money together for the court date but paid in full about 5 weeks later. (Plus costs!) but they took us to court anyway and now we have a CCJ!!! Our mortgage went on to a base rate once house was finished but we still have £40k on credit cards and need anothe £10k plus to finish the outside! We can claim our VAT back which is £22k but need the house finished outside to be signed off to claim! Our household income is £85k p/a, we meet our bills every month but our current mortgage company said their policy is not to deal with anyone with a CCJ, we are spending £1000 a month on credit cards and this will on,y increase as interest kicks in - All this is making me very stressed & was hoping someone could advise?
Yours in anticipation
Wendibowz

fermi

Welcome.

So can I get the time-line right here?

The claimant was awarded a CCJ (judgment for claimant) form the court, that you paid in full plus costs within 1 calendar month of the date of the judgment on the order?

If so, then you can apply to the court to have it recorded as satisfied and the CCJ removed from the register/cancelled, and removed from your credit files.

Wendibowz

Hi thanks for reply.
No we didn't make the payment within the month we were about a week later (sorry for any confusion) I know we can get a certificate showing that the debt was settled but it will remain on record for 5(?) years. Unfortunately Experian and the like simply show us as bad creditors. We are super stressed out and can't seem to move forward with it.

MNM2903

i dont know too much about this but just had a question in relation to all this.

Surely to get a CCJ recorded they need to take action to recover the debt outstanding and agree payment options and even before all that surely you have to miss more than one payment for it to get to that stage? From what youve just explained it was only one month where you couldnt make the payment in time if thats the case that seems incorrect. Someone please correct me if im wrong here?

Wendibowz

I've no idea how the process works. We had a payment in full date due and couldn't meet it. Even after contacting and discussing other options Buildbase refused and would only consider payment in full ( I have all correspondence) when we passed the date they wanted it paid by, they instructed a solicitor who then wrote and sent a court date! we still couldn't pay but had a release date for mortgage funds which we showed to BB but as the court proceedings had been started they said they could not stop it. We paid in full plus costs and now have to live with the consequences. I feel pretty fed up about it all and wonder perhaps if we didn't realise the full implication at the time? We haven't any previous debt experience!

Thrugelmir

From reading what you've posted you've embarked on this project without considering the financial aspects thoroughly enough beforehand. i.e. cashflow and capital required. When you say "finish off the outside" what works are still required? Could these not be deferred for a while until you get your finances back in better order. As for the CCJ. Buildbase would not seek one without good cause nor would the court grant it. So that's something you'll now have to live with until it drops off your file.

Wendibowz

Wow thanks for that 'Thrugelmir' really helpful advice! All of which I'm acutely aware of.
I think anyone who "embarks on a project like this without considering the financial aspects thoroughly beforehand" would be extremely fortunate. Believe me we had everything in place and some. I am not here to defend myself about understanding the house build financial process.
A stage release mortgages for self builds is a complicated thing in itself - one has to get sign off at each stage and get the timing spot on for each release, this went to plan each time except the one I'm mentioning. It's far too complicated and is also irrelevant to go into all the details but you can read my blog from the very beginning if you'd like to understand the process (the maplebarncompany.blogspot) in the meantime we are where we are - with hindsight we'd all be millionaires?
I simply came on here for some positive advice as we are floundering.

Quentin

MNM2903 wrote: »

i dont know too much about this but just had a question in relation to all this.

Surely to get a CCJ recorded they need to take action to recover the debt outstanding and agree payment options and even before all that surely you have to miss more than one payment for it to get to that stage? From what youve just explained it was only one month where you couldnt make the payment in time if thats the case that seems incorrect. Someone please correct me if im wrong here?

Yes you are wrong.


Once you get a judgement against you the only way you can stop it getting recorded (for 6 years) is to pay all money owed arising from the court claim to the claimant within a month from the date of the judgement.

PaulW922

I am afraid that you are probably stuck with this CCJ now. The claim made by the creditor seems to be a valid one. I think you agree that? You paid it in full but not within the 30 days necessary to get the CCJ effectively annulled? All I think you can do is to have the CCJ marked up as satisfied, which should be easy enough. If it is not shown at Experian/Equifax already it is easy to arrange.

the creditor needs to tell you that they are gong to court for a judgement and they seems to have done that..

As the CCJ gets older you may find your options for a mortgage open up but for the moment you may have to stick the variable rate - at least base rates are quite low at the moment. You can go to a mortgage advisor for help which may be your best course for a better rate

Is there anything now stopping you getting the VAT back under the self build scheme?

Wendibowz

Thanks PaulW922 - we are on a variable rate with existing lender so no problems there. We can get our VAT back once planning is satisfied and we're working towards that. The only real issue is that we have credit cards that were on 0% which we wanted to pay off before they go onto a higher interest. On paper our loan to value is low as we have at least 400k equity in the property. I have applied for a certificate from the court showing the debt is satisfied but sadly the way things are now when we applied for a new phone contract for example "computer said no" as its all data based.
As I said before we have not had a history of debt so very inexperienced. I didn't go into too much detail before but at the time of Buildbasegate we were properly strapped for cash and we tried to sell my car etc etc but we simply ran out of time! I guess we'll just have to sit tight now and live with the CCJ. Thanks for all the advice.