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  • FIRST POST
    • debthelpneeded
    • By debthelpneeded 13th Sep 18, 2:51 PM
    • 2Posts
    • 1Thanks
    debthelpneeded
    Does a Default lead to a CCJ help!
    • #1
    • 13th Sep 18, 2:51 PM
    Does a Default lead to a CCJ help! 13th Sep 18 at 2:51 PM
    Hi,

    I am about to default on 4 credit cards, 2 with Barclaycard and 2 with MBNA. Barclaycard total 14000, and MBNA 12000. Basically due to changing circumstances a few years ago, going part time and having twins, along with anxiety and mental health issues i can no longer afford the payments and have more going out than coming in. Both companies have gone down the zero offer route as basically i have no money to pay them. They have both been very accommodating and understanding. What i would like to know is once they have defaulted does that automatically mean they will go to CCJ? The companies were so understanding and said I could only pay them if i had income left at the end of the month, so not sure if a CCJ is a route they would take. Can anyone help as I am petrified of losing my home. Thank you
Page 1
    • Willing2Learn
    • By Willing2Learn 13th Sep 18, 2:57 PM
    • 1,746 Posts
    • 1,331 Thanks
    Willing2Learn
    • #2
    • 13th Sep 18, 2:57 PM
    • #2
    • 13th Sep 18, 2:57 PM
    Hi and welcome to the forum

    A default means you have defaulted from the original credit agreement. There is a whole, lengthy process to go through before your creditors can go down the CCJ route. Especially if you are looking to come to some new payment arrangements with your creditors. So try not to worry too much. The debts are not secured against your home.

    Have you contacted StepChange or any of the other free debt counselling services for advice and support? If you haven't, then I urge you to do so.

    In the meantime, why not post your SOA (Statement of Affairs) so that the good folk on MSE can look at ways to tweak your monthly budget. If you do decide to go ahead and post your SOA, please could you remember to click on the 'format for MSE' button at the bottom of the form


    http://www.stoozing.com/calculator/soa.php
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • fatbelly
    • By fatbelly 13th Sep 18, 6:47 PM
    • 12,962 Posts
    • 10,032 Thanks
    fatbelly
    • #3
    • 13th Sep 18, 6:47 PM
    • #3
    • 13th Sep 18, 6:47 PM
    You will NOT lose your home. These are non-priority debts. You would be very unlucky to face one court claim.

    For now, they've accepted zero offer.

    Post that soa and lets have a look at it.
    • sourcrates
    • By sourcrates 13th Sep 18, 8:27 PM
    • 15,701 Posts
    • 14,771 Thanks
    sourcrates
    • #4
    • 13th Sep 18, 8:27 PM
    • #4
    • 13th Sep 18, 8:27 PM
    The companies were so understanding and said I could only pay them if i had income left at the end of the month, so not sure if a CCJ is a route they would take. Can anyone help as I am petrified of losing my home. Thank you
    Originally posted by debthelpneeded
    Hi,

    Your debts are all non priority and unsecured, your house is perfectly safe.

    You refer to CCJ (County court judgement) its always possible they may take court action, but in your case there would be no benefit to the creditors, in theory they could go down the charging order route, but only once a CCJ has been granted, and as long as you were paying the judgement, even if it were only 1 a month, you have nothing to fear.

    Orders for sale are so rare, records are no longer kept as to how many are granted, there are so few.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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    • Just Di
    • By Just Di 14th Sep 18, 4:26 PM
    • 163 Posts
    • 67 Thanks
    Just Di
    • #5
    • 14th Sep 18, 4:26 PM
    • #5
    • 14th Sep 18, 4:26 PM
    I am about to default on 4 credit cards, 2 with Barclaycard and 2 with MBNA. Barclaycard total 14000, and MBNA 12000. . . .

    What i would like to know is once they have defaulted does that automatically mean they will go to CCJ? The companies were so understanding and said I could only pay them if i had income left at the end of the month, so not sure if a CCJ is a route they would take. Can anyone help as I am petrified of losing my home.
    Originally posted by debthelpneeded
    Please don't worry about losing your home. Orders for Sale are extremely rare.

    Even if you were to get a CCJ, if the property is in joint names (is it?) the Order would be a Restriction at the Land Registry which basically means you have to inform the creditor when the property is being voluntarily sold but they can't do anything about it before then, which could be in 20 years time.

    If any of these debts are below 10k then if they do issue a claim it would be allocated to the Small Claims Track where you would be offered the court's free telephone Mediation (after your Defence is filed) where you can attempt to negotiate a settlement which is not a CCJ (albeit legally binding).

    What is more likely to happen is you'll default on the accounts, and then after a while the debts will be assigned to a debt purchaser which can sometimes be helpful especially if they don't inherit the documentation they need to be successful in court if they decide to have a go.

    So you are a long way off court action

    Di
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