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Chaces if a CCJ on a DMP..

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Chaces if a CCJ on a DMP..

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
5 replies 815 views
Southampton12Southampton12 Forumite
3 posts
edited 30 November -1 at 1:00AM in Debt-Free Wannabe
Hi all,
I am considering starting a DMP with SC as per their recommendation. I have £57k of unsecured debt which SC predict will be paid off in 7 years. I am a homeowner but my equity is minimal.

On the basis that I stick to the plan as created by SC what is the likelihood of a CCJ being issued? This is important in my situation as my employer regularly credit checks me and a CCJ would lead to dismissal.

Any stats/experiences shared would be very helpful.

Thanks.

Replies

  • MovingForwardsMovingForwards Forumite
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    As long as payments are being made, to the correct debt owner, you shouldn't get taken to court (court proceedings started) and a CCJ entered at the end of it.

    The problem is if a debt is missed off and not paid, then proceedings will be commenced.

    Have a good look over all your debts, ensure SC include them all, then look each month to make sure everyone is being paid.

    Would your employer be ok with defaults / late payments / arrangement to pay markers be on your credit file?
  • Thanks MovingForward.

    I’ve checked my employee handbook and it mentions bankruptcy/ccj. I assume these are both matters of public record.

    I am lothe to mention this unnecessarily as I am afraid of disciplinary action.
  • edited 25 May 2019 at 4:44PM
    sourcratessourcrates Forumite, Board Guide
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    edited 25 May 2019 at 4:44PM
    To put the matter into some perspective, less than 10% of defaulted debts ever find there way into the court system.

    Original creditors almost never take legal action, unless we are talking a lot of money, the normal course of events is to either pass a debt over to a collection agency to manage, or to cut all ties and sell the debt on.

    If you are making regular monthly payments through your DMP provider, then its highly unlikley that situation will escalate any further.
    Just for arguments sake, lets say one of your creditors did take you to court, there is a law in this counrty called the "pre-action protocol - (part of the civil procedure rules)", under this protocol the creditor has to write to you informing you of the potential commencement of legal action, this is called a "Letter before Action" or LBA for short.

    The LBA contains a questionaire type document which you must fill in and return within 30 days, its an oppertunity to come to an amicable arrangement with the creditor before the matter proceeds to court.
    Most cases are settled at this stage, for those that arnt, then your case is heard by a judge, who will decide what payment is appropriate, subject to your income/expenditure, if judgement is granted against you, you have a further 30 days to pay the judgement in full, without it appearing on your credit file.

    So no one just "gets" a CCJ, unless the creditor dosent hold a current address for you, then any court papers will go to the last address they had on file, which is how CCJ`s by default occur, like everything in life, there is a process to follow, and you have ample opportunity to agree terms without the need for it to progress to legal action.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
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  • owen_moneyowen_money Forumite
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    Check you work contract carefully as although you might not get a CCJ you will get default notices for breaking your credit agreements if you enter a DMP, which will show on your credit file, so therefore make sure defaults aren't mentioned in your employment contract either
    One man's folly is another man's wife. Helen Roland (1876 - 1950)
  • fatbellyfatbelly Forumite
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    Try to save any overtime/bonus/windfall payments into an emergency fund. In the remote chance of anyone getting a ccj (and as you've heard there are many steps for a creditor to go through first) then paying it within 28 days means it does not appear on your credit file.

    It could also mean that you could finish your dmp earlier by doing full & final settlement deals
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