Claim Form from County Court threatening CCJ

kidsmadhouse

Forgive me if i sound very naive, but I have never had anything like this before.

4.5 years ago I was forced to give up work due to poor health and increasing disability issues. At the time I got all my creditor information together to work out who and what I could pay off with the payout I received. Many creditors were very good and gave me good settlement figures including the loan I had for my car, which is essential to my mobility. At the time I had a loan, credit card and current account (with overdraft) with Halifax. Halifax refused any settlement figure for the loan (despite it being paid 4 years early), and wanted every penny for the loan, and credit card. As I could pay other people with settlement figures I paid them and left Halifax.

I then tried to set up payment plans with Halifax, but being only on benefits, after going through income & expenditure information they kept telling me they could not set up an agreement as I did not have enough to live on. I pleaded for them to take £5, £4, £3, £2 or even £1 per month, but they said they could not. But what they did do was keep taking money out of my current account leaving me with nothing to live on!! But they had to give that back when i got the right advice. Then I set up a new bank account away from Halifax and left a £1,500 overdraft figure on my overdraft due to money being repeatedly taken to off set my loan and credit cards.

Again I was told I needed to set up an agreement and again was told it could not be set up.

The debt got passed around and each time I rang up, did an income and expenditure form over the phone and each time was told either that a plan could not be set up due to me not having enough to live on (again even refusing £1 a month), or that I needed to agree to ridiculous amounts such as £50/£100 a month, which I could not.

This went on and on. The debt was transferred back to Lowell Solicitors at some point, but too be honest, I had lost track which Halifax debt was with who as I was now getting differently letters every week, often it seemed like 2 or 3 companies were chasing the same debt.

Now I have received a Claim Form from the County Court Business Centre, and must admit had to google it to see if it was real, or just another debt company. But it appears to be real and a CCJ is a real threat.

Oddly enough Lowell sent me a letter 7 days after the date of the Claim Form saying that they were issuing legal proceedings.

i am furious!! I have never not tried to avoid setting up and paying a repayment plan. Each time I did, i kept being refused. But now they have added on £88.46 interest, £105 Court Fee and £80 Solicitor Costs!!. So now more in debt than when I started.

So what do I do now?? I am terrified they will take my car, which will leave me housebound. I have done a recent income and expenditure form using the National Debtline budget facility, and it still says I need more going out than what is coming in. I only get by, by skimping on my food budget and often have weeks where tesco's 31p cornflakes and eggs on toast are my diet.

I forgot to add that my son recently left university so I have to pay for his bedroom tax (unable to move as have been on waiting list for 8 years and expected it will be 5 or 10+ years for a move, plus my home is adapted for my current needs). And I have a adult daughter with learning disabilities and autism, who will never leave home or work.

This letter has frightened and is overwhelming me. What should I do?? Will the court accept a payment of a few ££ a month?? will they understand my income is so low??

Clive_Woody

I suggest you talk to one of the free debt charities such as StepChange, they will be able to help and will have seen situations such as yours before, it's a free phone number. Don't panic and don't stress.

Even if they get a CCJ, the court will order repayment based on affordability, which could be £1/week. I would imagine your credit history is already not great so a CCJ isn't going to make it a hell of a lot worse.

http://www.stepchange.org/

kidsmadhouse

Thank you, yes will ring them in the morning.

And yes my credit history is past revival unfortunately. You spend 30 years doing everything right to keep it nice and shiny, then wham out of the blue it is gone.

I don't deny I owe the money and if I could I would gladly pay every penny back if I could, But when you are left with a fraction of your previous salary (1/8th for me) then its a huge shock, and there is not a lot to go around.

redpete

kidsmadhouse wrote: »

I forgot to add that my son recently left university so I have to pay for his bedroom tax

Can't you charge him rent to cover that and more?

kidsmadhouse

Sorry if I did not explain that correctly. My son permanently moved out after finishing uni. Whilst he was their his bedroom was protected from bedroom tax as this was still his permanent home. But now he has moved out it is now subject to bedroom tax. So around £765 a year.

Hope this makes more sense now.

HappyMJ

kidsmadhouse wrote: »

Sorry if I did not explain that correctly. My son permanently moved out after finishing uni. Whilst he was their his bedroom was protected from bedroom tax as this was still his permanent home. But now he has moved out it is now subject to bedroom tax. So around £765 a year.

Hope this makes more sense now.

You shouldn't be paying that.

I'd have a word with the council regarding that as you have stated you've got a home modified for your needs and therefore you shouldn't be expected to move from that home. Are you on all the required benefits? Are you claiming discretionary housing payments to cover the shortfall? Do you have a carer who may be required to stay overnight? You meet the requirements by being on the waiting list for a smaller and suitable property so I don't see why they won't approve it.