At what stage do creditors apply for ccjs?

lieutenant_dan

Have kept up regular monthly payments for 2 years having defaulted on a few cards when out of work, but due to change in circumstances, unlikely to be able to meet the full repayments for a couple of months.

Had a few letters in the two year period threatening legal action, but not sure if it ever had really gotten to this stage, or if it was just scaremongering tactics that were being used, but wondering with the credit crunch at the moment too, if ccjs are automatically applied for at a certain stage, ie the stage I'm potentially at now where II will not be able to stick to the agreements. Or will my previous arrangements count in favour if I explain my circumstances?

craftingqueen_2

Hi LD,
With my hubby he's had 2 CCJ'S after just 10 months,they were c/c debt.
I suppose it all depends on which creditor and the amount you owe.

CQ

lieutenant_dan

Hi, had your husband been making regular payments, and they still applied for ccjs?

CCCS_Sarah

Hi Lieutenant Dan,

There is no set rule with creditors & CCJ’s however there are certain steps a creditor would have to take before applying for a CCJ.

First of all if you are missing or offering reduced payments you will start to receive collection letters. Usually along the lines of “your account has fallen into arrears, get in touch to bring the account up to date”. After a couple of missed payments they will issue you with a default notice, this is a legal requirement that is ending the contract between you and the creditor and would stay on your credit file for 6 years. A creditor at this point could choose to pass the debt on to a debt collection agency – if they do its not a problem as they have no more power than the original creditor so all you would do is just change who you are paying. Finally a creditor could pursue for a CCJ, this is done all through paperwork and it’s a blue and white form you would get through the post, it would ask for your income and expenditure and an offer of repayment (this would be an affordable amount that is fair to all creditors and based on your income and expenditure)

Has there been a change in your circumstances? Or just that things have started building up? Remember creditors can’t have what you can’t afford to pay them! If you post up your SOA people will be along to help out.

Hope this answers your question. If you need any further advice give me a shout

Sarah