CCJ & Defaults about to pass 6 years/expire. Is it worth paying them off?

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  • RelievedSheff
    RelievedSheff Posts: 11,328 Forumite
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    If you are the position to be able to pay off the debts then it is morally the right thing to do.

    You borrowed the money in the first instance. It is to some degree irrelevant if they affect your made up credit score or not.

    A satisfied CCJ will be looked upon by lenders far better than an unsatisfied one.
  • Higher
    Higher Posts: 20 Forumite
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    Thanks again all.

    The debt that went for a CCJ was initially from a Lloyd's overdraft but is now being dealt with by a solicitors firm since it became a CCJ and that's who I pay each month. I presume I write to the solicitor company rather than Lloyd's? It's Restons Solicitors the debt is with.

    Is there any issue with me phoning them to discuss a settlement initially rather than writing to them? If I was to agree to anything I'd obviously request this arrangement in writing before making payment.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    While the debts may ultimately disappear. Finance houses are like elephants. They'll never forget. You'll need to weigh up whether the inconvenience at a future date is worth the risk.
  • boo_star
    boo_star Posts: 3,202 Forumite
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    Thrugelmir wrote: »
    While the debts may ultimately disappear. Finance houses are like elephants. They'll never forget. You'll need to weigh up whether the inconvenience at a future date is worth the risk.

    To be fair once it's gone as far as a CCJ then it won't make a difference if you pay it off or not. You'll either be persona non grata or not regardless of what you do.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    boo_star wrote: »
    To be fair once it's gone as far as a CCJ then it won't make a difference if you pay it off or not. You'll either be persona non grata or not regardless of what you do.

    Likewise with other defaulted debts. The Lloyds umbrella extends far and wide.
  • boo_star
    boo_star Posts: 3,202 Forumite
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    Thrugelmir wrote: »
    Likewise with other defaulted debts. The Lloyds umbrella extends far and wide.

    Agreed. Once it gets as far as a default then you're likely going to be stuffed regardless.
  • nic_c
    nic_c Posts: 2,929 Forumite
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    For defaults you haven't paid, then so long as you are able to pay, it's a choice of morality. If you don't pay and they inform you the intention to start legal proceedings by issuing a preprotocol letter you can pay.
    For debts you are paying, like the CCJ, you need to keep paying. As to whether to pay it all off, that is a personal choice. As there are no costs it is effectively an interest free loan so you can carry on paying and putting money into savings - if you are paying the judgment installment they cannot ask you to pay more, but if you are paying less, usually by mutual agreement they could ask for financial statement.

    A reason for paying off could also be what you are aiming to do in future, for instance you don't want to apply for a mortgage and have to provide bank statements showing a regular payment plan with Restons, even after the CCJ has fallen off.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    nic_c wrote: »

    A reason for paying off could also be what you are aiming to do in future, for instance you don't want to apply for a mortgage and have to provide bank statements showing a regular payment plan with Restons, even after the CCJ has fallen off.

    Failure to disclose ongoing financial committments is Fraud. A sure way of finding oneself listed on NHunter.
  • Higher
    Higher Posts: 20 Forumite
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    Thanks for all of your advice.

    Since last posting I contacted the organisation dealing with the CCJ and after some negotiations was eventually offered a 50% reduction on the balance to be paid as final settlement. I have one question, before I pay this, is there any way the creditor can set aside the CCJ as such or remove it from my credit file early? Just wondering as if this is possible I may as well ask if they will do this as part of the deal with me paying up.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    No they won’t remove it just because you’ve paid.
    Especially if you’ve only paid 50% of the total owed.
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