ccj threat close to bankruptcy

london1973

Hi everyone, hope this is in the right forum


I have been served with a county court claim for a unpaid debt to a law firm who represented me nearly 2 years ago-the total bill was around 50k and I paid about 30k at the time with the rest to follow-however since that point my life has taken a dramatic downturn and I have been unable to pay the balance-and here is where we are-I accept the amount (although the fees were extortionate,
my eye was completely off the ball at the time, I was in rehab etc) - but I can't pay, or even make an offer


i am likely to be declared bankrupt at some point in the nearish future by HMRC, that is inevitable, but i would like to avoid being harangued for this debt after a ccj is ordered-if i send in the admission form with no offer the creditor can seek a judgement and appoint bailiffs almost immediately, or so i am led to believe-if i defend the claim i guess i could string it out until the bankruptcy but is this sensible-or perhaps i should speak to creditor? -really not sure of my best move-i have a very stressful time on the horizon with the bankruptcy so i could really avoid this being worsened by being hounded for this debt too-


i suppose ideally i should just declare myself bankrupt but emotionally I'm not ready for it, and i don't think i could afford it either

National_Debtline

Hi

Sorry to hear about the difficult time you’re going through. Hopefully bankruptcy will be the relief that you need.

You’re right that the claimant would have the right to use enforcement such as enforcement officers if you get a judgement and don’t pay it. I was going to suggest that you could admit the claim and offer a small payment plan to avoid enforcement but you say that you can’t afford that.

I do think it’s worth explaining that you will be going bankrupt soon to the claimant. They may not think it worth the effort of enforcing through court when the debt will be written off anyway. If they did use enforcement officers they can’t force entry into your home anyway as long as you don’t let them in.

James
@natdebtline

london1973

Thanks for your kind words James-I guess my concern with informing the creditor is that a) they won't believe me or b) if they do they might really go after me to try and get their pound of flesh before the floodgates open as it were-they are a reputable law firm so maybe this won't be their style


I am inclined to put in a defence on the basis that the fees were well over the various estimates they sent, it's not exactly a winning argument but might drag it out sufficiently?

National_Debtline

We can't really predict how a creditor will react so it's possible they could still try to pursue you up until bankruptcy. If you have a potential defence then buying yourself some time that way seems like a viable option. Bear in mind this could be stressful in itself in terms of collating evidence and a court hearing etc.

In some ways petitioning for your own bankruptcy might be the simplest option. With the new online application people have reported it being pretty straightforward and painless. Particularly if there are no assets involved. In terms of finding the bankruptcy fee you can check whether you are eligible for financial assistance from a charity trust fund grant on the Turn2us website:

www.turn2us.org.uk

James
@natdebtline