What happens to CCJ after 6 yrs with debt still outstanding?

Luke2016

Hi, - would be very grateful if anyone can help with my stressful situation (apologies if similar to other threads).
I currently have a CCJ that reaches its 6 yr anniversary in January. The debt of £40,000 from an old bank overdraft is still outstanding. (I've been paying a small monthly amount each month).

I hope to negotiate a full and final settlement with the bank but depends what is agreed whether or not i can afford to settle. (And indeed whether they would be willing to negotiate a settlement.) Not sure how long this will take either.

1 - In the meantime what happens at the 6 year anniversary - will the CCJ be removed from my credit reports automatically or do i need to take any action?
(Having the CCJ ironically is preventing me from earning more to be in a better position to pay the debt back.)

2 - Can the bank put another CCJ on my file. If so what procedure do they need to follow (same as before or can be applied automatically?)

I need to avoid another CCJ going onto my file as last 6 years has been so stressful. Thanks in advance for anyone with experience or knowledge of the above.

DCFC79

It would drop off your file after 6 years.

pappa_golf

I expect the bank will call in the £40,000 CCJ before January , and put a charge on your property/car or even get you declared bankrupt ,


£40,000 is slightly different to owing an old phone bill of £30

Luke2016

Thanks pappa golf.
They put a charge on my property 6 yrs ago, which i suspect is why they applied for the CCJ in first place.
Any suggestions on how to negotiate a deal on the debt to avoid another CCJ?

Buzby

They cannot have a second bird at the cherry - that is a no-no. They've taken you to court, and as they won, they got the Charge, that's the last thing they can reasonably do. If they've not forced you to sell up, then the Charge sits ticking until you sell. If you offer to repay anything, do ensure this is not in addition to the charge amount.

I discovered when settling a bank debt, they didn't bother cancelling the charge so when I sold up, there was a real danger they were going to double dip. Be wary of this!

sourcrates

The CCJ will fall off your file after 6 years, but that dosent mean it's gone away, it still exists, and it can still be enforced, but the creditor would need to go back to court in order to do so.

The charging order is there security then, not the CCJ.

Ben8282

However did you manage to get a £40,000 overdraft facility in the first place?
You say that you have been paying a small amount each month. To who? The bank or a debt collector? On what basis are these payment being made? Are these payments or anything to do with this account still active on your credit files? What is the exact current status of the overdrawn account on your credit files?
I am concerned that although the ccj will drop off the credit files, some adverse information may remain as a result of these payments being reported somewhere.

Luke2016

It was an o/d for my ltd co that fell into liquidation.
Nominal £15/month agreed with the banks solicitor due to my limited earnings/outgoings.
Credit file does not show an account as such (eg does not show the typical monthly payments as being up to date or behind at all, only the listing of the CCJ itself). There seems to be no mention of an amount outstanding anywhere on the reports, only the original £40,000 CCJ.
Haven't had any contact from the bank or solicitor in the last couple of years.
What are the possible options moving forwards? My main priority to to ensure CCJ comes off at 6yr point and stays off to try and get my life back on track.
(Thanks for all the comments - all very much appreciated)

sourcrates

Luke2016 wrote: »

My main priority to to ensure CCJ comes off at 6yr point and stays off to try and get my life back on track.
(Thanks for all the comments - all very much appreciated)

That will happen automatically no matter what.

Your options then depend on your circumstances, can you afford to make an offer to settle on this debt ?

Luke2016

I would need to see how much i can beg / borrow so not sure what that number would be at the moment.

What sort of settlements are banks accepting in situations like this? And in particular, RBS?

PaulW922

I am not sure how much the bank would take but if there is equity in your property the bank will not be that motivated to write off a huge amount. However there is nothing to stop you making an offer to settle. Just take care how it is worded - don't give the impression you have xxx of funds available if you don't as they may think if it worth enforcing it!

Once the debt stops off your file then, assuming there is little else negative there, you may be able to raise some additional finance..