Advice on defaulting

AgentBigBoss

And also how often creditors ask for CCJ before loan or cc default? And for wich letters I must respond and wich I can ignore? How can I know if they start court action after 14 days past after ,notice of default letter’? Creditor also can issue ,pre demand letter’ and ,final demand letter’. So looks like so long before default is finally marked. That’s all is overall quite scary and stressful 😱

RAS

Creditors have to issue documents demanding you repay the entire debt and a warning of a default, with a deadline for payment or arrangement. 

Legally they can't even send out a letter before action or serve court papers until that deadline passes. In practice, most creditors take time to send notice demanding an arrangement to pay, because a letter or email costs peanuts and court action is expensive. That's when you engage.

sourcrates

AgentBigBoss said:

And also how often creditors ask for CCJ before loan or cc default? And for wich letters I must respond and wich I can ignore? How can I know if they start court action after 14 days past after ,notice of default letter’? Creditor also can issue ,pre demand letter’ and ,final demand letter’. So looks like so long before default is finally marked. That’s all is overall quite scary and stressful 😱

Look at this in perspective, 99% of lenders do not go to court, getting defaults can take time, but once defaulted, they all follow a similar process, and pass straight over to a debt collector or sell the debt onwards to a 3rd party company.

This is the very reason we have a debt collection industry in the UK.

Only a very, very small minority will ever take legal action against you for non payment.

This has been said many times before, but the only letter you need take any notice of is the "letter before action" a prelude to legal action, that letter you must respond too.

Anything else, such as a default notice/final demand etc etc etc whatever bulls**t name they want to call it, you can simply ignore, as they are information only letters, and do not require a response from you.

It does not have to be stressful and certainly not scary, infact it can be quite an interesting process, if you actually read the letters sent, they are filled with all kinds of rubbish, some are actually quite funny.

You need to look at this process as a means to an end, take the emotion out of it, as you are dealing with computer generated mail, you should treat it as such, computers don`t deal in feelings, just facts, and that is how you should gear up your mind to approach this, once you do that you can just get on with everyday life and not worry about this any more, people stress so much when their in debt, there really is no reason for it to be like that.

AgentBigBoss

Thank You RAS and sourcrates! 😎 I really appreciate Your answers! And everyone who responded here too!