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CCJs- Please can someone tell me how they work?

(16 Posts)
needaholidaynow Mon 08-Jul-13 20:59:03

As a lot of people have, I have fallen in to debt will a few companies. Circumstances changed last year and so I have down a bit of a downward slope and now it's getting worse.

Had a letter on the 26th of June from a debt collector for one of the companies. They said that if I don't make payment in full within 10 days of the date of the letter they will get a court judgment against me. I received this letter today on the 8th of July and I am so scared.

What do I do? I can't pay this debt in full nor can I offer substantial payment.

I was just wondering if people could share their experiences with me, good or bad, if they have ever had a CCJ? I just need a heads up of what I should be expecting and what I can do to make this situation easier and so that it doesn't make my family suffer.

Thanks in advance.

keli5325 Mon 08-Jul-13 21:16:23

if you get a claim form you should complete it and make a sensible offer of payment on a monthly basis but if you call them now they might set up a repayment plan and not go for the ccj! how much i

keli5325 Mon 08-Jul-13 21:17:11

sorry i meant to say how much do you owe?

HugAndRoll Mon 08-Jul-13 21:21:54

If one gets granted it will be on your credit file for 6 years from the date it was granted. It can either be granted forthwith (you have to pay within 30 days or enforcement options become available such as a charge against your property, transfer to high court enforcement officers, an attachment of earnings etc) or if you complete the claim pack and they agree to your offer and the judge also agrees a judgment payment order. Who's it with and what value? Most people will agree to a repayment arrangement to be honest. Who is collecting it?

HoneyDragon Mon 08-Jul-13 21:28:08

Well first debt collecter threatens a ccj. They hope you'll pay.

Your debt also has to be high enough to warrant the debt collection agency paying for a ccj.

The ccj will then basically assess your situation and tell you how much you must pay each month. Legally the agency or court cannot make you pay more than you can afford.

If you work they may go for an attachment of earnings. The money is taken directly from your waged each month.

If you have property they may secure against that. You still make affordable monthly payments but if you choose to sell or remortgage the property than they get their share before you.

The only other option would be bailiffs. But if you can only afford min repayments and are not working they won't attempt this as you won't have assists to repossess that are enough to clear the debt.

That's basically how ccj works.

At the moment the debt collection agency want to scare you to pay as much as possible, legal action will cost them more than you. Tell them what you can afford to repay and be open about your income and expenditure.

needaholidaynow Mon 08-Jul-13 22:11:14

The value of the debt is £460.00 and it is with a payday loan company called QuickQuid.

Basically I got in to that trap. DP lost his job, I got a payday loan to get us some extra cash, paid it back. Then we were out of pocket again so I took another loan out, they offered me to roll it over again and offered me an extra £100.00 "for being a loyal customer" so I took it. sad Hindsight is a wonderful thing and I wish I had never got caught. Payday loans are so evil.

I had a baby earlier this year and around the time that the loan was going to be paid back I was due and we were desperate for the money. I was making myself ill. So I cancelled the direct debit knowing what I was doing was wrong but we needed the money. I guess I have been sweeping it all under the carpet ever since.

The debt collector is called ACR Europe.

Thanks for the replies. smile

needaholidaynow Mon 08-Jul-13 22:14:37

Also I am on Maternity Allowance and we receive tax credits and child benefit. When I go back to work I will be on about £900 a month plus whatever tax credits we are entitled to when circs change.

HoneyDragon Mon 08-Jul-13 22:26:34

Is the loan solely in your name? Do you own the home? If so give them you income and expenditure offer £5 per month, if you can afford that, and explain you will increase the amount when you return to work.

Tbh, offer that amount and in your circus, the debt agency will know you can't afford more and a csj would suggest similar or lower repayments.

Also, get on the phone to the CSA, they will help you with templates, letters and give you very good, up to date advice on pay day loan lenders.

Please do not let them worry you, or be scared. Pay day lenders don't prey on stupid people they prey on vulnerable ones.

needaholidaynow Mon 08-Jul-13 22:53:41

Yeah it's just in my name only. No we're renting with the council so I know the house is safe.

I have been referred by someone to Stepchange Debt Charity and will give them a ring in the morning.

You're right they do prey on vulnerable people. There has been a lot of talk about them in the press over the past few months and I heard that they were told to target women pushing prams when handing out fliers as they will probably need the money and jump straight in as they are probably struggling. angry

needaholidaynow Mon 08-Jul-13 22:54:55

Forgot the say young women pushing prams.

HoneyDragon Mon 08-Jul-13 22:57:10

Get lots of advice, broker the best deal for your circumstances and credit file, and in your circumstances I wouldn't panic too much about the ccj threat.

The pnly major things that your credit file could effect are if you plan to buy a property or rent else where in the next couple of years smile

keli5325 Mon 08-Jul-13 23:04:40

payday loans have recently been subject to an oft investigation and have been made to clean up their debt collection procedures so if you offer a small amount they will probably accept it x good luck smile smile

needaholidaynow Mon 08-Jul-13 23:06:07

Thanks HoneyDragon smile

I feel like my life is a mess. I'm only 23 and some of my friends the same age as me or just a bit older are getting mortgages and cars and I am up to my eyeballs in debt sad

After 6 years will I be able to start a fresh? If anything I have learned a huge valuable lesson and I just want to be get to my early 30s and not have this hanging over my head. DP will be in a job hopefully sooner rather than later and I will be working again by the end of the year.

I just start shaking every time the post comes. I mean literally, shaking and my heart starts racing.

needaholidaynow Mon 08-Jul-13 23:07:33

Thanks keli smile I will be speaking the Stepchange tomorrow and I think they are sending me template letters etc.. to get the ball rolling.

HoneyDragon Mon 08-Jul-13 23:15:09

Yes. After 6 years the default disappears, you'll still only be 29. Getting into debt is awful, but never feel shame. It's awful when you're desperate.

I'm still paying debts off, and I ought to know better, given the nature of my employment. But dh and I hit tough times when we lost our business 8 years ago, and the credits cards got whacked.

I hate it, but things do get better smile. Getting on the property ladder isn't all its cracked up to be either. The banks a shit landlord and doesn't send a plumber to fix the toilet or the drains, but still wants it money each month, mortgages SUCK. wink

Don't bury your head I the sand, go get good advice and the confidence to deal with this. You have a baby, they take enough of your sleep without worrying about repaying the loan too thanks

HugAndRoll Tue 09-Jul-13 21:56:36

What honeydragon said smile

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