ccj's, default and mortgage

hello19

hi, i have £19,000 worth of debt after being laid off from a then £27,000 job, in 2020. it's taken me two years to get to that position again and now due to the cost of living crisis i really can't afford to pay that off. 

for two years i have not paid the debt off, have been diagnosed with adhd, and have been trying to come to terms with that. 

I have 5 ccj's and 3 defaults all recorded from 2020. is it worth partially settling these debts or shall i apply for a dro? 

I would rather not go down the dro route as me and my sister are looking to get a mortgage, next year. i will also receive a £15,000 inheritance next year and my sister has substantial savings that we can put a deposit down of 15-20% of a mortgage. 

what is the best option to take? also if those 3 defaults turn to ccj will the six years take place from ccj on file or default on file? thanks

sourcrates

With 5 CCJ`s and 3 defaults, all around 3 years old, the chances of getting a mortgage are slim to none.
If you cannot service these debts, how on earth can you afford to service a mortgage?
Even a good subprime broker would struggle there.

Defaults do not turn into CCJ`s, you're getting confused, they are both very different and separate things.
A default is what you get when you don`t make your contracted repayment on your credit product, they show on your file for 6 years regardless of what you do.

A CCJ is granted by a court for non-payment of debt, after a creditor takes legal action against you, any judgement will show in the public information section of your credit file for 6 years, again, regardless of what you do.

If you qualify for a DRO, then opting for that cannot make your position much worse.

hello19

sourcrates said:

With 5 CCJ`s and 3 defaults, all around 3 years old, the chances of getting a mortgage are slim to none.
If you cannot service these debts, how on earth can you afford to service a mortgage?
Even a good subprime broker would struggle there.

Defaults do not turn into CCJ`s, you're getting confused, they are both very different and separate things.
A default is what you get when you don`t make your contracted repayment on your credit product, they show on your file for 6 years regardless of what you do.

A CCJ is granted by a court for non-payment of debt, after a creditor takes legal action against you, any judgement will show in the public information section of your credit file for 6 years, again, regardless of what you do.

If you qualify for a DRO, then opting for that cannot make your position much worse.

thank you for your reply, i qualify for a dro after speaking to stepchange. you say my position wont be any worse if i go ahead with that. how soon would i be able to get a mortgage after a dro? 

impoverishedtraveller

Probably when the defaults and the ccjs drop off your credit file.