Time between default and ccj

Gewakefie

hi everyone hope you’re well 

so I’m in the dreaded period of ignoring all my creditors and waiting for defaults. I had a few questions for anyone who might be able to put my mind at ease

im in about 28k of cc debt loan and PayPal credit and an old Lowell account

ive been reading this forum through and through and can’t find the answer I’m looking for specifically on the time it takes from a default to ccj 

because I have so many creditors what if they all default at different times how am I supposed to start my dmp with step change if one defaults next month but another doesn’t for another 6 months then what if I get a ccj I could lose my job I believe if that happens. 

Im trying to build an emergency fund this month will be the first month I’ll be able to put some money away. I stopped paying everything end of June, how many month do you think I have realistically to save before signing up with step change? 

I’m going to be paying about 300 a month so gonna take me like 7 years to pay off which is so daunting and scary

and my last question is I read that it’s maybe better to pay less to dmp as the offers down the line may be better? Is this true? If so do I think just need to make my bills appear a little bigger? This seems morally wrong but of course I want to be debt free as quick as I can. I’m also worried that some creditors won’t accept my payments and then I’ll get a ccj anyway 😭😭

thanks for everyone’s help in advance 

Grumpelstiltskin

The majority of defaults never go to the CCJ stage.

If a creditor is thinking about going for a CCJ they have to follow the legal procedure which means a letter sent to you by snail mail with a 30 day return.

This is why we tell you to open any letter sent by snail mail.

If you do get a letter before action come back and we will tell you how to handle it.


Honestly hold off making any payments as long as you can and get your emergency fund up as much as you can.

At the moment no creditor can do anything at all until after the debt defaults and even if you get the default notice nothing happens quickly, debt collection moves slowly.

Gewakefie

So is a letter before action different to notice of default yeah? 

Ok thank you that’s settled my nerves bit 🙃

RAS

After you get the default letter, you'll get another telling you who to pay, with account details. Respond to that and it's unlikely you'll ever receive a Letter before Action.

How long since you paid or made written acknowledgement of the old Lowell debt.

Gewakefie

RAS said:

After you get the default letter, you'll get another telling you who to pay, with account details. Respond to that and it's unlikely you'll ever receive a Letter before Action.

How long since you paid or made written acknowledgement of the old Lowell debt.

When you say respond how do you mean?

like what do I say sorry if it’s a stupid question 

Lowell I’ve been paying for years but they put a 3 month hold on my account and now sending emails again I’ve told them I’ll pay £5 a month till I’m caught up with priority debts

monzo I’m making a token payment of £10 a month till my dmp they’ve already set up a dd but hoping it defaults anyway and they did say it should

Gewakefie

But I have like 7 others that I’ve just stopped paying full stop 

PayPal credit I’m a bit worried about as I have about a grand on there but it’s interest free for 4 months god knows how long that will take to default

its all very overwhelming I believe when I do finally do my dmp there will still be things that haven’t defaulted 

Grumpelstiltskin

\you do realise what happens if you start paying before a debt has defaulted?

Once a default has happened the debt is removed from your credit report 6 years from that date even if you don't pay any money to it.

If you start repaying before it has defaulted it is marked Arrangement to Pay, they stay on your credit report for 6 years after your final payment, so if it takes 4 years to repay it stays on your credit repot for 10 years.

You do think you should rush into paying ASAP but that is the wrong thing to do. This is why we tell you everything moves slow in debt collection and you should just go with the flow and not try to rush it.

Gewakefie

Well Monzo have told me that the loan will default in the next 3-6 months though it’s just that I still use it as my main bank, I know it’s advised not to but they have promised not to offset with my wages, oh god I think I’ve gone about it all wrong now

Gewakefie

I use credit karma to see my credit score I can’t for the life find where it tells you what’s in arrangement to pay or what’s defaulted 

Grumpelstiltskin

You will have received a default letter when the debts default, so no letter no default.

You do know the golden rule, never bank with any banking group you owe money to.

Whatever they say to you they can just take money from your account.

If you do decide to change accounts never use the banking switch service but manually transfer vital direct debits yourself.

I think you have panicked and not researched enough, we keep telling you there is no rush as things move slowly.