Could someone explain CCJ process to me?

[robinredbreast]

Hi there,

 

I have never had a CCJ, but been reading about them on the forum.

 

I'm a bit confused, my understanding was (wrongly I now think), that if you are taken to court for non-payment of say £2,000 that the judge will put a CCJ against you for £2k, and that this stays on your credit record for 6 years ... when it then "falls off". (unless of course you pay it off in the meantime).

 

But I've been reading that the Judge will actually assess what you can afford to pay each month, put an order on you for that amount, and then you are duty bound to pay each month. If you don't you can have your home taken off you (for example).

 

So my question is, if the Judge says you have to pay say £20 per month, is this only for a period of 6 years from the judgement (i.e until the CCJ "falls off" the book), or how does this work ... I'm confused ... ?

 

Thanks in advance for any advice on this.....

[gizmo111]

A judge will order you to pay what you can afford based upong your income and expenditure that you submit to the court. Basically you submit an offer and he agrees to it. You then pay this amount monthly until you have paid the balance. The CCJ is registered with the registry trust and at the CRA's. If you pay in full within 28 days it will not show on your credit file. If you pay monthly or in full after the 28 days then it will show on your credit file until 6 years after it was registered. You will still carry on paying if there is any balance owing.

Regards losing your home - you are proabably thinking of a charging order, which the creditor can apply for if you default on the CCJ. This doesnt mean they can automatically take your home, it just means they are a secured creditor and will be near the top of the line for payment if the house is sold.

[robinredbreast]

Thanks for your reply, its made things much clearer for me ...

 

So the CCJ will always last for 6 yrs ...

If you are in a payment order, and because of the amount you owe and are paying, you may still be paying your debt off for a period of more than 6 yrs - then the CCJ still falls off after 6 yrs, but you continue paying your order as normal.

 

I suppose if you stop at that point, the whole process will start again.

 

Hope I've understood correctly ...

[robinredbreast]

..

[Nomore Baloney]

Are they allowed to take a spouse's income into account when assessing your ability to pay?

[hammyhound]

I suppose if you stop at that point, the whole process will start again

 

No they will then apply for a charging order on your house if you default on the CCJ.

 

HH

[gizmo111]

Are they allowed to take a spouse's income into account when assessing your ability to pay?

 

Only in so much as they will expect 50% of costs to be paid by spouse.... or a contribution to household expenses at least.

[Nomore Baloney]

It's just that I might be getting accj from a company I used to have a franchise with.

 

I was ill and unable to carry on doing that job. I had sale orders for about £6000 which, unbeknown to me, they passed on to other sales people. They also terminated my sales contract without following their procedures.

On the basis that they owed me more than I owed them in completed orders (Customers paid me in cash) i told them to call it quits.

 

They are now taking me to court. Very tricky to defend and prove (they are a large company that coincedentally now has a sales staff turnover of some 45% p.a).

 

If they succeed in getting a judgement, I will not be able to pay the £1500 as I am still without work. My wife pays all the bills at home - mortgage, food, council tax, the lot, bless her.

 

She has a good job, but can they take her income into account as she already supports me?

[hammyhound]

Have you received the court papers?