PLEASE tell me what to do with this CCJ/DEFAULT

[abby1234519]

Hi,

I had posted on another forum however no one has answered so I thought I would ask you guys. I am likely to get a CCJ in the next two months (already had paperwork. My question was that I will be living in my current house (which I am renting privately) for two years before probably moving towns as I will have graduated. Then I will need to rent again and obviously if I want to rent through a letting agency due to the CCJ i will need a guarantor (a possibility as I have one now) or save up 6 months rent (probably can do this too).

 

My question is this. I have about 18 creditors. I'll have one CCJ and and then MOST of those are defaults.

 

Which is better to have a satisfied (is that when its paid off or do I mean settled?) ccj and then say 6 satisfied defaults and the rest are still "in progress" or an unsatisfied CCJ, ie not finished paying it off...but have paid off ALL my defaults. Which I think I can do in the next two years, well maybe 80% of them perhaps. Can someone let me know as I want to sit down and do a "debt budget" for the next 24 months

 

So I want to know whether to budget to pay off the CCJ in a year but only get a couple of defaults paid, or whether I get as many defaults paid off and take longer to pay the ccj

[maroondevo52]

Hi, abby.

 

I'm no expert but would think settling the ccj would be the way forward, don't think it makes much difference regarding settling the defaults.

[abby1234519]

I just wondered what looked better. If I have £300 spare per month from October I'd be happy to plough £250 into the CCJ paying it off in 9 months and then have just lots of defaults which I'd pay £1 per month to for a while.

 

But I could pay off 12 of the 18 defaults off and take longer to pay the CCJ. I know the CCJ will be there for 6 years I am just trying to work out how to make my credit report NOT as bad in 2 years time when I need to rent somewhere else

[Tingy]

I would say get rid of the defaults and ensure you keep up religiously with the CCJ payments. I'm no expert, but this is how I'm viewing it:

 

If you think of it with you as a landlord looking to let a property, would you rather rent to someone with no defaults, and history (from student days) of a CCJ that they have kept up payments on, OR would you rather rent to someone who has a catalogue of defaulting on payments but has, as yet, avoided CCJ's?

 

I know what my answer would be!

[abby1234519]

But I do already have the defaults? I am currently paying them off at £1 per month. They'd stil lbe on my file

[dx100uk]

the defaults will fall off after 6yrs from their date regadless to if you pay £1PCM or not.

 

as for the [impending?] CCJ

what you pay will depend on the judgement surely?

 

tell us about this impending [your ONLY?] CCJ

 

p'haps we can help it might not happen if we know the background?

 

dx

[Tingy]

Yes, but your defaults would all be paid off, right? So the only thing of relevance is the CCJ which would show as up to date. In my opinion that portrays a better picture than unpaid defaults - you might do that with your rent! Everything paid bar one shows you've reformed your ways.

 

Neither is ideal, but IMO one is better than the other.

[dx100uk]

no the default stays there , it nor any creditor 'knows' it paid off.

a default is as bad as a ccj

 

are these default notices or just late payment markers?

 

we need more info to be honest

 

dx

[abby1234519]

the defaults will fall off after 6yrs from their date regadless to if you pay £1PCM or not.

 

as for the [impending?] CCJ

what you pay will depend on the judgement surely?

 

tell us about this impending [your ONLY?] CCJ

 

p'haps we can help it might not happen if we know the background?

 

dx

 

Rightttttt well.

 

Started uni in Sept 2009, didn't pay my first installment of rent as I had a bipolar episode and spent it in two weeks.

I confessed to them, said I'd start paying it back, kinda ignored them.

 

I paid my next installment, didn't pay the next one.

 

So paid 1 third of the years rent.

 

So the tenancy ended in June 2010.

 

I have successfully rented without getting into arrears for 2010to2011

and I am just about start a new tenancy albeit by myself which probably will last for 2 years.

 

I agreed I would pay £5 per week starting last November 2010(I had paid bits and bobs towards this debt since the summer just not much).

 

In January 2011 I informed them that I was pregnant and it was going to be hard to keep up with £20 per month as a student

when I've had to pay to go to Lancaster hospital from Leeds a lot this year.

 

At the start of April 2011 I ran out of money, I told them this and she said wait till your next loan comes in.

 

I completely forgot, she phoned me on the 18th May to ask if I was going to pay, oddly enough I had just paid them £5.

She said the solicitor had advised they had to protect their interests and take me to court.

 

They do know how pregnant I am (36 weeks) and the lady (Unipol) said they had to do it,

but just to put what I could offer down and it wouldn't matter if I missed a few weeks (due to being very close to due date and not getting income support yet) which I found odd.

 

So I recieved the court papers for £2209.62 but that didn't take into account the measly £19

I paid over the month from 18th May to 20th June (courts must have taken ages to send me the paperwork)

so I was told to admit the debt but send it back with the amount corrected

and then I think it has to go back to Unipol and then back to the courts then me?

 

I have done that last week with a letter saying I can only offer £1 for 3 months due to pregnancy

and my finances don't increase till September (benefits and student finance) and I sent proof of pregnancy.

 

the county court today said to ask Unipol to put a stay on it till after I give birth

as I am worried about paperwork arriving and me not getting it if I've gone to hospital

as anything can happen when you are pregnant.

 

I have emailed them asking this.

 

I worked out IF I started paying £250 from October then the debt would be paid off by June 2012. But its all well and good me saying this, I've not exactly show evidence of wanting to pay it off, its just I've been unstable for a long time and only been ok since March this year

 

I then have various defaults for various things collected over the past few years ranging from £60 to £995 each

[abby1234519]

Welcome Finance don't appear to have defaulted me after a year and a half weirdly

[Tingy]

Hi Abby,

 

Thanks for filling in the details. To be fair, as you say yourself virutally, you can't blame them for wanting to cover their own backs.

 

You obviously have debt problems and some of this seems to be related to your suffering from bipolar - are you on medication and under a consultant for this?

 

What I would do in all honesty if forget about finding an answer to your original question as I honestly don't think it's relevant. I think what you need to do is look at the bigger picture and say, OK, I've got debt problems. My credit record is wrecked for at least the next 6 years whatever I do, so what is the best and fastest way for me to get out of debt?

 

The first thing you need to do is complete an Income / Expenditure sheet. This is hard at the moment as you haven't had the baby yet and so your outgoings are likely to increase a fair amount soon.

 

In all honesty, you need to have a very realistic view of your expenditure. This is almost impossible until the baby's born. It's fine for them to say just put down what you can offer, but it is hard for you to know what you can offer at the moment as it will change in 4 weeks time. Hopefully the stay will remain in place until after you've given birth and then you'll be able to fill in an accurate IE form. You need it to be accurate in order to be able accurately to work out your disposable income, and from that figure your repayments. This would then take account of ALL your debt to, not just the one taking you to court. A CCJ may feel like the end of the world at the moment, but it isn't. I've had them for years and still existed without problems.

 

So, after all of that, what I would suggest you do as little as you possibly can ountil you've had the baby. Once s/he is born, then you'll know how much s/he is costing you each week. At that stage, fill in the Income Expenditure form (nothing to stop you starting it now!) and that will then work out your disposable income for you. It is essential you get that form right, as from that we'll then make repayment offers to all your creditors and those are the repayments you're likely to be stuck with for some time.

 

In your situation you might be best going with one of the free Debt Management Companies like CCCS. You can then set up a direct debit and they will distrbute the funds for you. As I said - the important thing is to get you debt free rather than discuss the merits of CCJ vs Default.

 

Don't forget to answer my question about your bipolar - it is extremely relevant!

 

Tingy

[abby1234519]

No, I've never had medication as just after I started seeing a head doctor, I got myself rather addicted to mkat/meowmeow at university which was the reason I didn't pay the 3rd installement. As I have an extremely addictive personality I have to stay away from anything that can influence me, which meant cutting off all contact with people who drink/drugs etc. I'm not that type of person, I just had an odd episode and it spiralled for a few months. Haven't touched anything since July, which coincides with leaving to go stay with my grandmother for the summer! Whilst I might sound like a walking disaster, I'm not, I'm very maternal and am just leaving those days behind me, I've had to repeat the latter half of my 1st year of university this year but I've come out with a first WHILST being pregnant.

 

I see a mental health lady at my parents town as obviously being pregnant I had concerns, so I see her every couple of weeks. Shes decided though that she thinks its more Borderline Personality Disorder as I'm stable and have been for a year. She feels the stress I was under in 2009/2010 probably meant I displayed bipolar tendencies to an extreme but that possibly I am not as I haven't had an "Abigail moment" for a while. Once I move back to my university town in September her and the midwife who deals with mental health people have set it up so I should have a support network but I don't think they think medication is necessary as when I am not stressed I cope well, it is stress that sets me off on the downhill slope towards disaster (eg running away to France aged 20 and I am only 22 now!)

 

The thing with the ccj and defaults is that I am okay with the house I am moving into on Friday, I rent through a private landlord but have a guarantor and she didn't credit check me. But if in two years when I graduate I want to live elsewhere the CCJ would royally stuff this up so I wasn't sure whether I should focus on clearing it even though it would be listed still on my file but if its settled doesn't that look better? I will have £300 spare a month starting from October, should I put all £300 towards my debt or should I save 6 months of rent for when I move in two years. I don't know how to organise it. I have about 10300ish worth of debt, recently have Littlwoods say they won't pursue me anymore so thats good. I don't know whether to try to pay the ccj off in 9 months and then focus on defaults, or whether it matters?

Hi Abby,

 

Thanks for filling in the details. To be fair, as you say yourself virutally, you can't blame them for wanting to cover their own backs.

 

You obviously have debt problems and some of this seems to be related to your suffering from bipolar - are you on medication and under a consultant for this?

 

What I would do in all honesty if forget about finding an answer to your original question as I honestly don't think it's relevant. I think what you need to do is look at the bigger picture and say, OK, I've got debt problems. My credit record is wrecked for at least the next 6 years whatever I do, so what is the best and fastest way for me to get out of debt?

 

The first thing you need to do is complete an Income / Expenditure sheet. This is hard at the moment as you haven't had the baby yet and so your outgoings are likely to increase a fair amount soon.

 

In all honesty, you need to have a very realistic view of your expenditure. This is almost impossible until the baby's born. It's fine for them to say just put down what you can offer, but it is hard for you to know what you can offer at the moment as it will change in 4 weeks time. Hopefully the stay will remain in place until after you've given birth and then you'll be able to fill in an accurate IE form. You need it to be accurate in order to be able accurately to work out your disposable income, and from that figure your repayments. This would then take account of ALL your debt to, not just the one taking you to court. A CCJ may feel like the end of the world at the moment, but it isn't. I've had them for years and still existed without problems.

 

So, after all of that, what I would suggest you do as little as you possibly can ountil you've had the baby. Once s/he is born, then you'll know how much s/he is costing you each week. At that stage, fill in the Income Expenditure form (nothing to stop you starting it now!) and that will then work out your disposable income for you. It is essential you get that form right, as from that we'll then make repayment offers to all your creditors and those are the repayments you're likely to be stuck with for some time.

 

In your situation you might be best going with one of the free Debt Management Companies like CCCS. You can then set up a direct debit and they will distrbute the funds for you. As I said - the important thing is to get you debt free rather than discuss the merits of CCJ vs Default.

 

Don't forget to answer my question about your bipolar - it is extremely relevant!

 

Tingy

[Tingy]

Agreed - settled CCJ would look better. However, I still stand by my comments re tackling the rest of your debts while you're at it - and don't forget you've got to live. I never had that much free money a month when I was at uni!

[abby1234519]

its because i will be a single parent, so my income is around 1600 per month from sep and my bills arent too high. I'm probably going to plough £250 into my debts and save £50 per month and then once the CCJ is paid off I'll have a few months to save as much as possible for when I graduate. Having thought about it, I graduate in 2013 so whilst i could try to pay the CCJ off by next year, I could just try to have it settledby feb 2012 which would enable me to also settle some of the defaults and save a little bit more. I kinda need to do everthing in order to prepare for the end of university!

[Tingy]

Good thinking that woman! Great to see you thinking about how you're going to sort out what. Remember the defaults are there for 6 years no matter what, so if there's anything else you've not mentioned, try very hard to maintain payments on those as you don't want any more defaults wrecking your credit history.

[abby1234519]

Ok right..so I can plan this all.....

 

DO I...

 

1) Pay off CCJ by June 2012. (Even though I won't be moving till June 2013) which means I can save £50 per month but hardly pay any defaults off (ie pay min payments)

2) Take longer to pay off CCJ but have it paid off by May 2013 (ie before graduation) allowing me to settle 14 of 18 defaults AND save £100 per month

[dx100uk]

not sure but you seem to be placing too much creedence on settling the 'defaults' - you cannot settle them, they are there if you pay them in 6 mins or 6yrs - by paying them quicker, they do not go away

they will only go after 6yrs from their date - end of! unless you settle the whole account they are linked too and demand their removal as a condition of your settlement payment [which you cannot do so forget it]

 

get the ccj dealt with, min [£1 pcm to everyone else]

 

by the way

list your debtors please

 

and you need to look at reclaiming too!!

IF any of these defaults are because of charges, then the default MUST be removed if they cough up.

 

you mention atleast one red light warning debtror here already - welcome finance .... 90% of welcome debtors have been fleeeced with unlawful fees and PPI!

 

dx

[Kitten1]

Also, it has already been mentioned, but please don't underestimate how much a baby costs. Nappies alone can cost about £40 - £50 a month, depending on what you use. Formula is £10 a tub and you could need 2 or 3 a month if you don't breastfeed. And clothes!! Babies and children grow at a rate of knots and you'll soon find that once you've got them kitted out, they've grown out of all their clothes!!

 

When you do your budget, try and overestimate on things like food, gas, elec and try to have a small emergency fund. That way, you make sure you aren't going to end up with more debt.

 

Offer pro rata payments based on a smaller amount of available money and you could always pay a bit more if and when you can afford it.

 

Good luck with the baby x

[abby1234519]

No its more of the fact that I was under the impression it looks better for them to be settled on my credit file. I'm not too bothered if not, I am happy to just pay the CCJ off and then look at the defaults but I just thought it would be nice to have less people chasing me. I mean they will still chase me after the 6 years is up and the defaults aren't on my file won't they?

 

I have never paid PPI on anything, and the charges on the welcome finance and interest has been added on. I know my credit file says the balance is 3805 but the dca wrote saying it was 2166 or something similar. I have asked for a breakdown of interest and charges, not that WFS ever reply mind you! I've copied this from whatsthe cost so the formatting might be a bit horrible the first figures are what I started off at a couple of months ago although thats not the original figure I can't remember the initial figures but the unipol one has gone down by £300 before that. Lowell wrote to me saying Littlewoods won't pursue me for the debt (I suspect its unenforceable anything but who knows). Things like Quickquid where I have paid £2 its because I was told it has been passed onto motormile finance, I've not had anything from them. I am now going to leave it till they contact me. If I haven't made a payment its because I can;t work out who to pay. 3G and 02 are with lowell who are waiting for their clients to review my request to wipe the debt, payday express never reply.BSkyB was a mistake debt, ie sky have acknowledged it shouldnt have existed. British gas have told me who has the debt, those people havent replied and I wrote and emailed a month ago. Simply be and Viva La Diva are with Buchanan Clark and Wells who I wrote to like Lowell saying I was a student, pregnant, no income etc could they wipe it.

 

Unipol (likely CCJ)

£2,265.62 £2,170.55 £95.07

Welcome Finance £2,612.03 £2,612.03 £0.00

Littlewoods £1,362.41 £0.00 £1,362.41

Barclays £992.09 £984.00 £8.09

Capital One £690.80 £678.00 £12.80

HSBC £690.47 £690.47 £0.00

Quick Quid £500.00 £498.00 £2.00

Payday Uk £375.00 £346.12 £28.88

Pay Day Express £295.00 £295.00 £0.00

Orange £223.65 £145.80 £77.85

N Power £784.91 £182.90 £602.01

Viva La Diva £156.89 £156.89 £0.00

Vodafone £140.90 £139.90 £1.00

British Gas £110.00 £110.00 £0.00

02 £61.16 £60.00 £1.16

IRCAS £68.90 £47.37 £21.53

3G £331.28 £331.28 £0.00

BSkyB £34.56 £0.00 £34.56

Simply Be £301.95 £301.95 £0.00

 

not sure but you seem to be placing too much creedence on settling the 'defaults' - you cannot settle them, they are there if you pay them in 6 mins or 6yrs - by paying them quicker, they do not go away

they will only go after 6yrs from their date - end of! unless you settle the whole account they are linked too and demand their removal as a condition of your settlement payment [which you cannot do so forget it]

 

get the ccj dealt with, min [£1 pcm to everyone else]

 

by the way

list your debtors please

 

and you need to look at reclaiming too!!

IF any of these defaults are because of charges, then the default MUST be removed if they cough up.

 

you mention atleast one red light warning debtror here already - welcome finance .... 90% of welcome debtors have been fleeeced with unlawful fees and PPI!

 

dx

[abby1234519]

I've budgeted £60 for baby costs as initiall I will breastfeed for as long as possible and try to build up some frozen supplies and I also have bambino mio nappies in a variety of sizes given to me so that SHOULD mean I am not spending on nappies. So if I only manage for two months well I will have put aside howevermuch of that £60 and not spent it. I've got clothes till 6 months, mums friend has had lots of baby boys so we think we can clothe him till he is a year old! If not I refuse to spend money on new baby clothes, second hand is just as good, all they do is poo and wee and sick on them

 

Also, it has already been mentioned, but please don't underestimate how much a baby costs. Nappies alone can cost about £40 - £50 a month, depending on what you use. Formula is £10 a tub and you could need 2 or 3 a month if you don't breastfeed. And clothes!! Babies and children grow at a rate of knots and you'll soon find that once you've got them kitted out, they've grown out of all their clothes!!

 

When you do your budget, try and overestimate on things like food, gas, elec and try to have a small emergency fund. That way, you make sure you aren't going to end up with more debt.

 

Offer pro rata payments based on a smaller amount of available money and you could always pay a bit more if and when you can afford it.

 

Good luck with the baby x

[abby1234519]

Good thinking that woman! Great to see you thinking about how you're going to sort out what. Remember the defaults are there for 6 years no matter what, so if there's anything else you've not mentioned, try very hard to maintain payments on those as you don't want any more defaults wrecking your credit history.

 

I have tried messaging you back but it won't let me SO I'll just write it here.

 

 

 

Sorry about delay, I've been moving house with no internet but now back at my parents where I can sit on the sofa and enjoy doing nothing...till the baby comes that is.

 

I sent the IE sheet that was true for that particular month, obviously its changed now I've moved house as I am not sharing so all the costs are burdened by me and then in 2 weeks hopefully there will be a baby so it will change again! I wrote a letter when I sent back the form explaining this, national debtline thinks they might put another stay on it till the baby is born because otherwise I would have to send about 3 updates. With regards to my budget. I have no idea what to budget. I really don't. All I know is how much my rent is, water, virgin media, telephone and thats it! I just don't know how to predict anything else. Not even food! I've never kept track of what I eat

[Lee Vodafone Company Rep]

No its more of the fact that I was under the impression it looks better for them to be settled on my credit file. I'm not too bothered if not, I am happy to just pay the CCJ off and then look at the defaults but I just thought it would be nice to have less people chasing me. I mean they will still chase me after the 6 years is up and the defaults aren't on my file won't they?

 

I have never paid PPI on anything, and the charges on the welcome finance and interest has been added on. I know my credit file says the balance is 3805 but the dca wrote saying it was 2166 or something similar. I have asked for a breakdown of interest and charges, not that WFS ever reply mind you! I've copied this from whatsthe cost so the formatting might be a bit horrible the first figures are what I started off at a couple of months ago although thats not the original figure I can't remember the initial figures but the unipol one has gone down by £300 before that. Lowell wrote to me saying Littlewoods won't pursue me for the debt (I suspect its unenforceable anything but who knows). Things like Quickquid where I have paid £2 its because I was told it has been passed onto motormile finance, I've not had anything from them. I am now going to leave it till they contact me. If I haven't made a payment its because I can;t work out who to pay. 3G and 02 are with lowell who are waiting for their clients to review my request to wipe the debt, payday express never reply.BSkyB was a mistake debt, ie sky have acknowledged it shouldnt have existed. British gas have told me who has the debt, those people havent replied and I wrote and emailed a month ago. Simply be and Viva La Diva are with Buchanan Clark and Wells who I wrote to like Lowell saying I was a student, pregnant, no income etc could they wipe it.

 

Unipol (likely CCJ)

 

Vodafone £140.90 £139.90 £1.00

 

Hi Abby,

 

Naturally, I don't know the circumstances leading up to the default we've recorded but can I check with you that the £1.00 per month you're currently paying has been agreed with the DCA?

 

Should it not then I'm sure I can assist you further with this. As such, you're welcome to email me with the details of the account in question by following the contact details in our pinned thread http://www.consumeractiongroup.co.uk/forum/showthread.php?213340-Vodafone-Webteam-for-Customers-With-Problems

 

Once you've sent it you'll receive an automated reply with a reference number. So I can make sure it's received could you update the thread with this and I'll get back to as quickly as possible?

 

In regard to the default, without making any promises, I'd also be happy to review this side of things for you too.

 

Kind regards,

 

Lee

 

Web Relations Team

 

Vodafone UK

[abby1234519]

Hi Abby,

 

Naturally, I don't know the circumstances leading up to the default we've recorded but can I check with you that the £1.00 per month you're currently paying has been agreed with the DCA?

 

Should it not then I'm sure I can assist you further with this. As such, you're welcome to email me with the details of the account in question by following the contact details in our pinned thread http://www.consumeractiongroup.co.uk/forum/showthread.php?213340-Vodafone-Webteam-for-Customers-With-Problems

 

Once you've sent it you'll receive an automated reply with a reference number. So I can make sure it's received could you update the thread with this and I'll get back to as quickly as possible?

 

In regard to the default, without making any promises, I'd also be happy to review this side of things for you too.

 

Kind regards,

 

Lee

 

Web Relations Team

 

Vodafone UK

I'll send you an email in a bit, however it was COMPLETELY my fault that the default was registered, I had a mental breakdown basically a couple of months after taking out the contract.

 

I have had a letter from Moorcroft saying that they have sent the debt back to Vodafone, I've then had a letter from Vodafone saying they don't have possession ofthe debt, that it is with Moorcroft. And when I've emailed via the vodafone website they want me to phone collections to find out but as I've replied to the emails, I don't actually have access to a landline. So its a case of me wanting to know who to start paying and how and where the debt actually is!

[abby1234519]

I think the reference number from the email replies from vodafone are

(edited)

 

 

the account number was (edited)

Edited July 14, 2011 by 42man
Edited due to account numbers being posted here in public

[Lee Vodafone Company Rep]

Hi Abby,

 

Thanks for coming back to me and I'm sorry to hear about what happened shortly after you joined us.

 

I've located your email but for some reason I'm not able to transfer it into our queue and so you may receive a reply to it from my colleagues in Customer Services while I get things looked into.

 

If you reply to this email could you include the code WRT135 - FAO Lee in the subject line which will ensure that it's routed into our queue and I'll pick it up from there?

 

In the meantime, leave this with me and I'll come back to you as soon as I can.

 

Best wishes,

 

Lee

 

Web Relations Team

 

Vodafone UK