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Can you offer a full and final on a debt subject to a CCJ?

Hi,

can anyone point me in the right direction?
I am due a bonus every three months. The next one will be paid around June and will be about £3.5k.
My loan is just under £5k but has a CCJ attached. Long story and not very original i'm afraid!
All my other debts shoud be cleared by then so i want to know if i can offer a full and final settlement on the loan, i could then be debt free alot earlier.

If i can't offer a full and final, am i better off putting the lump sum into a savings account and paying the full amount back in one go?
I assume my credit rating will not improve if i pay in a couple of installments but that if it is shown as satisfied that this will help a little?
Total debt at LB Moment (Nov 2007) = £6583 £4649 20.03.09
£5060 Black horse Loan - £4114 as of 20.03.09
£940 o/d with hsbc - -£535 as of 20.03.09

Comments

  • 4littleone
    4littleone Posts: 224 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Bump! To see if anyone can help?
    Total debt at LB Moment (Nov 2007) = £6583 £4649 20.03.09
    £5060 Black horse Loan - £4114 as of 20.03.09
    £940 o/d with hsbc - -£535 as of 20.03.09
  • CCCS_Matthew
    CCCS_Matthew Posts: 922 Organisation Representative
    Part of the Furniture Combo Breaker
    Hi 4littleone,

    There is certainly nothing to stop you offering a settlement on a CCJ. If it's accepted, the CCJ will still stay on your credit file for 6 years, so it won't have much a positive effect in that respect.

    It's certainly worth doing if you have the money to do it, it the result means you can write a substantial amount of the debt off. All I would advise is that you ensure the creditor does give you written confirmation that the payment is a full and final settlement, meaning the debt will be settled.

    Regards,
    CCCS
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    It's certainly worth doing if you have the money to do it, it the result means you can write a substantial amount of the debt off. All I would advise is that you ensure the creditor does give you written confirmation that the payment is a full and final settlement, meaning the debt will be settled.

    I presume you would also be able to use the creditors acceptance to obtain a "Certificate of Satisfaction" then?
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • CCCS_Matthew
    CCCS_Matthew Posts: 922 Organisation Representative
    Part of the Furniture Combo Breaker
    I believe so. If the creditor is happy to settle the debt for a reduced amount, then the court should issue the certificate as long as the creditor is happy.

    Normally, you have to show proof that you have paid the debt off in full to obtain the certificate, but in this kind of situation I would think the court would contact the creditor to check that they are happy the debt has been settled.

    I would advise the OP to speak to the County Court the CCJ is registered with to check protocol before going through with the application of the certificate.

    CCCS
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • 4littleone
    4littleone Posts: 224 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Thanks matthew, much appreciated.

    That's an interesting point fermi. I assume that i would have to ask the issuing court for the certificate then.
    I understand that satisfying the ccj won't "clear" my credit record, but at least it will show as satisfied which i suspect is slightly better than having an ongoing debt.
    Total debt at LB Moment (Nov 2007) = £6583 £4649 20.03.09
    £5060 Black horse Loan - £4114 as of 20.03.09
    £940 o/d with hsbc - -£535 as of 20.03.09
  • 4littleone
    4littleone Posts: 224 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Oh bottom, sorry matthew, cross posted!
    Total debt at LB Moment (Nov 2007) = £6583 £4649 20.03.09
    £5060 Black horse Loan - £4114 as of 20.03.09
    £940 o/d with hsbc - -£535 as of 20.03.09
  • Bunnyinthelights
    Bunnyinthelights Posts: 15,278 Forumite
    Good question 4littleone!
    Thanks for the answers, I will need this in the future.
    Empty pockets never held anyone back, only empty heads and empty hearts can do that -Peale
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    I agree. A very useful question. :)
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • 4littleone
    4littleone Posts: 224 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    (4littleone basks in the glory of being useful!)
    Total debt at LB Moment (Nov 2007) = £6583 £4649 20.03.09
    £5060 Black horse Loan - £4114 as of 20.03.09
    £940 o/d with hsbc - -£535 as of 20.03.09
This discussion has been closed.
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