Time between default and ccj

Gewakefie

sourcrates said:

Some basic facts for you.

Creditors cannot take legal action until you break the terms of the agreement, which will only occur once a default notice is sent under sec 87(1) of the consumer credit act, that gives you 14 days to remedy the breach to your account, if you do not comply with it, the account defaults and a default is placed on your credit file.

The lender is then able to either sell your debt to a 3rd party, assign a debt collector to collect it on their behalf, or to take legal action to recover the balance.

Usually its the two former options that apply, its very unusual for lenders to take legal action themselves, but it does occasionally happen.

Its 3rd party debt purchasing companies, such as Lowell/Cabot/PRA Group etc that might get legal with you, should you choose to continue to ignore all contact from them for a long period of time.

So its they who are more likely to take action through the courts, rather than your original lender.

Only some 12% of defaulted debt ever see`s a court claim, so statistically it is still quite rare.

Ok thank you for this

but what if defaults all happen at different times, how long can I leave it obviously I don’t reply to the 14 day default notice I’m assuming

im just worried about when to start my plan as I don’t want any of them to get to ccj stage and because I have like 10 different creditors it’s worrying me

ive not been in a good way because of all of this. I’m 34 and it spiralled quite quickly and I just feel like I’ve ruined my life for the foreseeable. But going to try and save as much as I can before the plan . Do you think roughly 6 months would be ok to go bigots it all before setting up dmp? Also if someone does threaten ccj what form does it come in a letter? What would it say? Cos I suppose if that does happen with one of them I could start paying that one and then when they all default I could start dmp with stepchange? 

Grumpelstiltskin

You are thinking too much about what might happen way in the future

Forget worrying about replying within 14 days it just doesn't matter.

As sourcrates has told you only about 12% of debts enter up in court.

If (way in the future ) you get a letter before action you will have 30 days to reply to that. That is vital you you that and should you get a letter before action come back on here and we will tell you what to do.

What you need to do is concentrate on your emergency fund together, save as much as you can in the mean time.

sourcrates

We only advise waiting for all accounts to default as it provides the best outcome for you.

With that many creditors I can understand your frustrations, so a simple remedy for you is to start paying each debt, yourself, once an account default`s, and has either been sold on, or assigned to a collector (whatever happens you will be written too) that way provides you with some piece of mind.

When all have defaulted, you can still use stepchange if you wish, or continue to self manage, its your decision.

Or, 

You can save up a few months emergency fund, and also make provision for it within your budget, and then let stepchange do their thing without waiting for defaults, its entirely your choice, all we can do is tell you of the consequences your actions will create, and how your accounts will be dealt with, depending on what you do.

Most debts in a DMP will default naturally anyway, any that do not you can complain about.

Debt management is a very simple uncomplicated process, so try not to overthink things.

Gewakefie

Ok thank you so much! But if I start the dmp before they default then that’s worse for my credit or will the default once already in a dmp override the “arrangement to pay marker” if that makes sense

sourcrates

Gewakefie said:

Ok thank you so much! But if I start the dmp before they default then that’s worse for my credit or will the default once already in a dmp override the “arrangement to pay marker” if that makes sense

Some lenders may continue to mark your file as AP, but as I said you can complain about that, as they should default you after between 3/6 missed contractual repayments.

Defaults override any other marker.

Look, as with most things, sometimes there has to be compromise, you can`t always control what happens to your credit file, as well as manage 10 creditors within debt management, something may have to give, that will be inevitable, so best advice is don`t worry about credit files, get the debt sorted, the credit file will heal itself in time.

Lots of people post on here in very similar situations to yours, posting the same questions you have.

They were all told the same thing as we are telling you now.

Six months/a year later, they come back to update us, not believing how easy it was to deal with, and wishing they had done it much sooner, the things they worried about most never happened, the sky did not fall in, the sun still rose the next day, people tend to massively over think what might happen, and most of it is pure fantasy driven by what they have read on the internet.

Just do your thing and all will fall into place honestly, it will be fine.

Gewakefie

sourcrates said:

Gewakefie said:

Ok thank you so much! But if I start the dmp before they default then that’s worse for my credit or will the default once already in a dmp override the “arrangement to pay marker” if that makes sense

Some lenders may continue to mark your file as AP, but as I said you can complain about that, as they should default you after between 3/6 missed contractual repayments.

Defaults override any other marker.

Look, as with most things, sometimes there has to be compromise, you can`t always control what happens to your credit file, as well as manage 10 creditors within debt management, something may have to give, that will be inevitable, so best advice is don`t worry about credit files, get the debt sorted, the credit file will heal itself in time.

Lots of people post on here in very similar situations to yours, posting the same questions you have.

They were all told the same thing as we are telling you now.

Six months/a year later, they come back to update us, not believing how easy it was to deal with, and wishing they had done it much sooner, the things they worried about most never happened, the sky did not fall in, the sun still rose the next day, people tend to massively over think what might happen, and most of it is pure fantasy driven by what they have read on the internet.

Just do your thing and all will fall into place honestly, it will be fine.

Listen thank you so much for this. I’ve been so stupid with money, suffer from ocd, impulsive and can’t quite believe the mess I got myself into in a short amount of time but this gives me hope and yes I will just ignore everythig for now and hopefully everything will fall into place thank you again for your reassurance