CCJ is it possible to reduce settle before?

the_JHD

Ive just had a ccj listed against me, its my debt I own up to it. However i have read if I pay before 30 days it wont go on my record. After struggling through 10 years of debt and facing it head on I am trying to get in a better position in 12 months, all but one default has left my credit file so this ccj will set me right back. What I am wondering is if I was to offer a settlement of 50% and they accept(probably wont but hey) would that stop the ccj?

jbkmum

Unlikely. You would have to pay the full amount to have the CCJ wiped within 30 days

the_JHD

Thought that may be the case. I could find 50% in 30 days but not full amount.

National_Debtline

Hi there,


Unfortunately, settlement offers after the creditor has obtained a judgement can be harder, but even if they did accept the settlement and agreed not to pursue the rest, the CCJ would still show. You must pay the full balance within 1 month of the judgement date (28 days to be safe) in order to have the CCJ removed from your credit file. If you are unable to do that, then unfortunately, the CCJ will show for 6 years from the date of judgement.


You also need to bear in mind that at the moment the CCJ could be (or about to be) in default, and the creditor could take enforcement action. To prevent this you can vary the judgement at the court with an N245 form, which should cost £50 to submit, but if you are on a low income or certain benefits this fee can be waivered. You would need to do a SOA and make an offer to repay by instalments that you can afford.


Best of luck,


Laura
@natdebtline

the_JHD

Thank you. It is a proper kick in the teeth as it shouldn’t have got to this stage as I made contact and sent letters back when required but one got lost in the post so they escalated it to court. Was aiming to be in a position to clear debts next year, still aiming for it, but now got another 6 years of struggling to get credit

jimbo747

You can get through life without ever needing credit. Someone on these forums once said getting credit is stealing from your future self, as you've now found, no need to repeat that mistake.

the_JHD

Yes that is true. I am in the process of sorting myself out following a divorce and years of fighting debts, something I should have tackled better before. Now it’s going to impact me if I want a mortgage in three years which was the plan. It is what it is I suppose and just have to get one with it

System

jimbo747 wrote: »

You can get through life without ever needing credit.

Indeed you can but you'll end up on a pre-pay gas and electric meter and a PAYG mobile phone. Also a bad credit file affects you in other ways from everything from trying to rent somewhere to the price you pay for insurance.

Just_Di

the_JHD wrote: »

it shouldn’t have got to this stage as I made contact and sent letters back when required but one got lost in the post so they escalated it to court.

Can you just clarify if this was a Default Judgment because you didn't file your Acknowledgment of Service or Defence before the court deadline?

Or are the proceedings ongoing?

I only ask because some people call a claim form a "CCJ" .

Annoyingly Default Judgments (and Admissions) are automatically sent to the Registry Trust and therefore show on your CRA file.

However claims that are contested and lost in court (hence a CCJ) are not registered unless there's any subsequent court action such as an Application to Vary or enforcement by way of a Warrant of Control (for bailiffs) or an Attachment of Earnings application.

Were you sent a formal Letter Before Claim before the claim was issued?

A little more information will be helpful because in some (rare) cases the Claimant can agree/consent to a set-aside of the CCJ if they haven't followed correct court procedure (Civil Procedure Rules).

Di

the_JHD

Just_Di wrote: »

Can you just clarify if this was a Default Judgment because you didn't file your Acknowledgment of Service or Defence before the court deadline?

Or are the proceedings ongoing?

I only ask because some people call a claim form a "CCJ" .

Annoyingly Default Judgments (and Admissions) are automatically sent to the Registry Trust and therefore show on your CRA file.

However claims that are contested and lost in court (hence a CCJ) are not registered unless there's any subsequent court action such as an Application to Vary or enforcement by way of a Warrant of Control (for bailiffs) or an Attachment of Earnings application.

Were you sent a formal Letter Before Claim before the claim was issued?

A little more information will be helpful because in some (rare) cases the Claimant can agree/consent to a set-aside of the CCJ if they haven't followed correct court procedure (Civil Procedure Rules).

Di

Apologies for just replying to this now. What happened was link was dealing with the account. I contacted them several times and they said they would call back, I never received the calls. So it got passed to the solicitors. I spoke to them and they said send a budget sheet which I did but it got lost in the post. Next thing I get a court letter, I responded online at moneyclaim as the solicitor said they cannot deal with it once the court letter has been sent and it’s been agreed I pay £5 per month back. Very angry that it got to this stage as I have faced up to all my debtors and pay them all monthly, not once received a court letter and now faced with this.

Just_Di

the_JHD wrote: »

I get a court letter, I responded online at moneyclaim as the solicitor said they cannot deal with it once the court letter has been sent and it’s been agreed I pay £5 per month back.

From what you say you may have filled in the Admission section on the Acknowledgment of Service offering £5 per month which is why you got the CCJ if the Claimant accepted your offer which the court will have sent them.

It's annoying because despite issuing the claim they could have settled this with you direct using a Tomlin Order which is not a CCJ (unless you breach the terms) so not on your CRA files.

Does the Order say you must pay £5 per month (not a forthwith order for the whole lot)? If it does then as long as you keep paying those instalments they cannot seek enforcement by bailiffs, Attachment of Earnings, Charging Order (if the CCJ is for over £1k).

Once it's paid in full your CRA file will show it as 'satisfied' which may make it possible to obtain a mortgage with some lenders.

Di