Egg threaten CCJ

Apple_2

My O/H has an Egg c/c debt of about 6k. His unsecured creditors including this are 20k. He also owes 20k to the I.R. Back in April he stopped payment with all the unsecured creditors. He'd been out of work 7 months and simply ran out of money ( self employed ). We wrote to everyone and explained his finances. Since then each creditor has put the debt through their internal system threatening legal etc. We've offered !!!!!!'s of 30% which were rejected. I was paying this - he doesn't have it.
Since June he's been working but we haven't told the unsecured creditors this. Simply because he been paying everything earned to the I.R who rank as the priority creditor. His current job finishes in Oct and although he'll have paid off a lot, he'll still have I.R. arrears.
Egg have told him they'll seek a CCJ next week.Now they have been the worst of the brunch for phoning, hassling and threatening. I think it MAY be a bluff to scare him some more.
What I'm thinking is : what's the worst that happen with a CCJ? He submits an income & exp report. Admits he's working but all monies are going to the I.R as the priority creditor. Judge hopefully ratifies this and awards Egg a nominal amount like one pound p.m.
Am I right thinking this ?
Egg get lumbered with this silly amount which, as long as he pays, they have to abide by. Btw all creditors know of his total indebtedness to everyone including I.R. (copies of documentation sent )
Like I said, I'm wondering if a) the CCJ is a bluff and b) given his circumstances how it can hurt him.
Any input gratefully received.

Pere_Ubu

My husband and I have unsecured credit we couldn't afford. Now Pay Plan deal with every thing for us paying each of our creditors a pro rata amount each month. First National were never happy about this. The sold the debt on the Asset Link who demanded the full amount (stupid really as if we had we would have paid them!!). Anyway, they didn't hang aroung they took us to court and got a CCJ the amount to be paid was less than we pay now! However, just last Thursday we got another letter from Asset Link explaining that they are to apply o the court for Charging Order against our property. This means that the unsecured becomes secured. I telephoned them to explain that we didn't have any more money and they offered me a loan!!!!!! Anyway, said no thanks. It's going to court and we will attend to fight off a Charging Order. We have a good case but you know I think it will depend on what sied teh bed the judge got out of. I thought a CCJ was the worse that could happen and was in a way looking forward to it a I thought it would put a full stop on the harrassment however, now it's a charging order. All I can say is get advice, stay on top of things. I think my husband and I got a little complacent when Payplan got involved thinking we couldn't be touched.

good luck!

jen_jen_2

a ccj has to be "defaulted" on before a charging order can be applied for, so, as long as the CCJ comes through as a reasonable payment that you can afford, keep up the payments and thats the end of it.

Problems can start however, the offer you make and the financial details dont go to the court, they go to the creditors - does the creditor want to have received this? send recorded delivery. do they want to accept the offer? if they refuse the offer they can get a "forthwith" judgement which basically means the money is due now, you therefore default and they apply for the CO. and you do end up in the position of sorting out a charging order request. some of the local county courts are also more generous than others in getting the "forthwith" judgement rather than asking a district judge to make the decision.

i suggest you get advice and let a third party assist you, so you have some record of what you have offered and when, and if it does get complicated definately get advice eg CAB.

to the second poster, i hope you have got some advice about this, you need to try and get the CO hearing in your local court, you have a right to ask for this and you will also need to attend hearing with all info and evidence of your offers/payments etc.

good luck

Apple_2

Thanks Pere

O/H doesn't have property, car or any assets. Seriously ! He lives with me and I pay the bills. Apparently Egg already 'threatened' him with checking the Land Reg for owner of our flat. Fine ! I'm the owner - always have been. If they've done their homework and checked Land Reg & DVLA - they'll know it's the truth.
If they accept the evidence of all his creditors including the I.R. and as I said they've had all documentation to prove this - what would a CCJ get them apart from a nominal monthly amount from the court ? I just don't understand how it improves their position ?

jonesMUFCforever

Apple wrote:

Thanks Pere

O/H doesn't have property, car or any assets. Seriously ! He lives with me and I pay the bills. Apparently Egg already 'threatened' him with checking the Land Reg for owner of our flat. Fine ! I'm the owner - always have been. If they've done their homework and checked Land Reg & DVLA - they'll know it's the truth.
If they accept the evidence of all his creditors including the I.R. and as I said they've had all documentation to prove this - what would a CCJ get them apart from a nominal monthly amount from the court ? I just don't understand how it improves their position ?

It doesnt but it will stop him applying to anyone else for credit.
Eric

sundaymadness

I'm not quite sure I understand all your posts Apple as to start with it was you with the debts and a brother (an accountant) who was helping you but now its the OH with the debts and you are supporting him?

Can your brother not advice?

Apple_2

ejones999 wrote:

It doesnt but it will stop him applying to anyone else for credit.
Eric

Are you serious ? They'd do it for that reason ? He hasn't applied for credit, there's only one new search on his Experian report and that was for a basic bank account - they'd see no searches. Apart from the fact that his credit is a diaster and nobody would lend to him, I know he'd never touch credit again.

And I don't believe Egg are that altrustic. It'll cost them to apply for the CCJ and as in my previous posts the I.R. will get priority treatment. So at best they'll be paid 'sometime afterwards' and at worst they won't be paid if he can't pay off the I.R. debt.

I may be a cynic but I keep thinking there's something else going on.

If they don't believe him fair enough - but if they've done the Land Reg/DVLA searches, and they have the evidence of the total debts ( including the I.R. ) I don't understand.

Apple_2

sundaymadness wrote:

I'm not quite sure I understand all your posts Apple as to start with it was you with the debts and a brother (an accountant) who was helping you but now its the OH with the debts and you are supporting him?

Can your brother not advice?

First posts on this forum from 'Apple' were by my O/H with the debts. He'd been watching this forum. He tells me he used the 'brother as accountant" to disguise himself in case creditors actually check/watch this forum. I'm the one that's been trying to deal with this for him, and I am an accountant. But I've never dealt with debt before. I've talked to National Debtline and another phone line who's name I can't remember.

I kind of got hooked on this site myself and felt it a very useful source of info/support for his debt problems. I just posted under his nicname. Sorry if that was wrong or misleading.

Our situation is genuine.

Apple_2

Oh and I'm female without the debt - he's male with the debt.

jonesMUFCforever

Apple wrote:

Are you serious ? They'd do it for that reason ? He hasn't applied for credit, there's only one new search on his Experian report and that was for a basic bank account - they'd see no searches. Apart from the fact that his credit is a diaster and nobody would lend to him, I know he'd never touch credit again.

And I don't believe Egg are that altrustic. It'll cost them to apply for the CCJ and as in my previous posts the I.R. will get priority treatment. So at best they'll be paid 'sometime afterwards' and at worst they won't be paid if he can't pay off the I.R. debt.

I may be a cynic but I keep thinking there's something else going on.

If they don't believe him fair enough - but if they've done the Land Reg/DVLA searches, and they have the evidence of the total debts ( including the I.R. ) I don't understand.

Trust me a CCJ means he will be declined for credit for at least 6 years from date of ccj unless satisfied in the meantime. This will apply to most types of bank accounts, credit cards, loans, mortgages, even down to applications to catalogues like Grattan etc etc

Apple_2

ejones999 wrote:

Trust me a CCJ means he will be declined for credit for at least 6 years from date of ccj unless satisfied in the meantime. This will apply to most types of bank accounts, credit cards, loans, mortgages, even down to applications to catalogues like Grattan etc etc

Ok ejones999 thanks. That isn't a hardship -I think he'd be a fool to get involved in credit again. If having a CCJ prevents it, that's not a penalty in my eyes.