CCJ's and selling up

TwistedPsycho

Hi guys,

Its been a while since I posted on here as the DMP was going swimingly. I have been struggling some months but managed to cut back on the essentials to make the payments every month.

Nationwide however have now decided that the payment which equated to 2/3rds of the pre-DMP payments is no longer enough. Between KPR (their collectors) and Nationwide they have phoned me 4 times in as many weeks telling me in some detail that they are going to petition for a CCJ to guarentee the payments and that they have now refered to the legal team, and the legal team now have my papers. They are getting the payments, I have not missed a payment so its beyone me why they feel that this CCJ is going to be needed!

But anyway I digress. They are threatening to put my share in the house under a CCJ. Obviously if I was to miss payments under it they could force the sale of the flat in joint names, which would be in negative equity (at the moment) incurring the wrath of Northern Rock.

But if I get a CCJ, what would happen if I subsequently (at the end of my fixed term) sell the flat with my partner and move into rented accomodation? What would the CCJ then be based on? If anything? Would their sucessful petition of a CCJ force me to continue to mortgage a property?

A weird question maybe, but something that would ease my mind..

Regards

ifonlyitwaseasier

bumpity bump

CCCS_Sarah

TwistedPsycho wrote: »

Hi guys,

Its been a while since I posted on here as the DMP was going swimingly. I have been struggling some months but managed to cut back on the essentials to make the payments every month.

Nationwide however have now decided that the payment which equated to 2/3rds of the pre-DMP payments is no longer enough. Between KPR (their collectors) and Nationwide they have phoned me 4 times in as many weeks telling me in some detail that they are going to petition for a CCJ to guarentee the payments and that they have now refered to the legal team, and the legal team now have my papers. They are getting the payments, I have not missed a payment so its beyone me why they feel that this CCJ is going to be needed!

But anyway I digress. They are threatening to put my share in the house under a CCJ. Obviously if I was to miss payments under it they could force the sale of the flat in joint names, which would be in negative equity (at the moment) incurring the wrath of Northern Rock.

But if I get a CCJ, what would happen if I subsequently (at the end of my fixed term) sell the flat with my partner and move into rented accomodation? What would the CCJ then be based on? If anything? Would their sucessful petition of a CCJ force me to continue to mortgage a property?

A weird question maybe, but something that would ease my mind..

Regards

Just been reading your post. Seems here they are just trying to scare you into paying more. The whole point of a DMP is to pay an amount that is FAIR to all creditors and more importantly an affordable amount for you.

There is certain step’s a creditor needs to take in the ‘collection process’. I have briefly wrote the collection process below so you can see what has been happening and what could happen.

· you will have been receiving standard collections letters (go along the lines of “your account has fallen into arrears, get in touch to bring account up to date”)
· A default notice – this ends the contract between you and the creditor so they can pass the debt on to a collection agency such as KPR (KPR don’t have anymore power that the original creditor, all this means is you would pay the collection agency rather than the creditor)
· The creditor/ collection agency may choose to pursue you for a County Court Judgment (CCJ) – these are noting to be worried about, all done through paperwork (blue and white form, Court crest in top left corner and will say N1 in small writing bottom left) it will say on your credit file for 6 years. The point of CCJ is to set a FAIR REALISTIC payment amount based on your income and expenditure. So if you received any claim forms fill them in and send them back with an offer of repayment (same as what you have already been paying to that creditor on your DMP). I would suggest you send it back recorded delivery just so you have a record that the paperwork has been received by the creditor.

If the creditor is making threats of securing the debt against the house this is called a ‘Charging Order’. The only way a creditor can get a charge put on the house is if you get a CCJ and then default on the CCJ… So as long as you complete any county court claim forms, send them back and then make the payments you will be fine!

Hope this answers your question. Sorry it’s very long; if you have any other questions please drop me a line

Good Luck
CCCS_Sarah

TwistedPsycho

HI Sarah,

Thank you for what is a lot of imformative information.... that does not sound right, but you get my drift. I think I had better work out where I am here:

you will have been receiving standard collections letters (go along the lines of “your account has fallen into arrears, get in touch to bring account up to date”)

Yes I have had plenty of those, regardless of the DMP I have been paying for the last 12 months. The most recent one was two weeks ago telling me to phone them urgently.

A default notice – this ends the contract between you and the creditor so they can pass the debt on to a collection agency such as KPR (KPR don’t have anymore power that the original creditor, all this means is you would pay the collection agency rather than the creditor)

Yes I received the Default notice back in July 2007. They were the ones that offered me final settlement of a stupid amount that I would never be able to find in the 7 days they offered me.

So it should be CCJ letters shortly. When i was in contact with my DMP negotiator (am I allowed to say who here?) they said to send all the court forms to them after they have told me what to write where. I assume that this is normal. I am surprised that the company I am with did not inform me about the fact that charging orders can only be sought after a CCJ. The apparent scare tactic of a charging order without that slightly major point has got my partner worried that she is about to lose the equity in the house because of my student debts (hang on... its negative at the moment... sure they can have half my mortgage debt)(I jest and digress), that she is already looking at selling up and renting.

Can this plan of action be of any use, or will it just infuriate everyone and make them more determined to get me bankrupt?