10 yr old CCJ at 65, focus/advice needed please

[Hannay100]

A terrible business judgement in straitened circumstances led in 2002 to a CCJ for £50K. At that time I was 54 and this was my first and only experience of CCJ/legal/Court matters, and I was angry at myself and also deeply ashamed.

 

Being completely naiieve in such matters I didn’t appear in court personally or contest the claim, because it was legitimate and in any event I was not intending to try and dodge liability. So I *went-along* with the routine processes, and an order was made at £50 per month after my circumstances had been considered which by then had declined with the folding of the business.

 

I have made payments properly to the claimant’s Solicitors as required for the last 10+ years, each under cover a brief note felt to be a sensible precaution to record payment, stating simply that it was the current-month CCJ payment for forwarding to their client.

 

6 years later and almost 5 years ago now when I became 60, there was much media advertising urging people to check their credit record. I did and was mildly curious that my CCJ was not shown, but just accepted it and didn’t explore any further. I had no awareness whatsoever of the relevance in this regard of 6-years passing, of the possible effect on enforcement, of statute-barring under some circumstances, or of any of that stuff at all that I have now started to become aware of within literally the last 24 hours as I will turn 65 soon and have thought that I should look at my affairs.

 

I had a further brief foray in to self-employment at one point in an effort to improve my circumstances and restore some ability to repay debts, though that did not sustain and I have been largely unemployed through that time despite my efforts.

 

My circumstances today include living in rented accommodation after losing our house some years ago when unable keep up the mortgage. With no other assets I have negotiated much-reduced repayment arrangements for my other debts, and by very tight budgeting I have maintained these and CCJ payments even though our income has been only JSA when unemployed and Pension Credit since transferred to that Benefit when I was 60. Yes it must be magic, and my wife is the magician.

 

As sincerely as I wish to settle the CCJ, even with £7K repaid the remaining £43K is a huge amount and it is unquestionably the case that I will not see such a sum again. Nor will I be able to amass it, given firstly the unlikelyhood of a return now to meaningful employment, and secondly the certainty that even in that instance no salary/wage would ever be adequate for that outcome to follow.

 

The CCJ will inevitably remain uncleared therefore because it will be another 71+ years before it is settled, and expecting to make any increase to improve that is unrealistic.

 

So having now had my head pulled out of the sand by my rising awareness I have had my eyes opened from googling such matters as when/if a CCJ expires, what happens if it isn’t settled, what abilities the claimant has for further action, and more besides, all very basic stuff I know.

 

As a result I am now wanting to become properly clear about my own matters.

 

Could someone expert in CCJ matters therefore please review 1 and 2 below and advise if my assumptions are well-formed as I am uncertain about what appear to be a couple of conflicts though I am sure that this comes simply from my unfamiliarity with law-speak and jargon.

 

So then ...

 

To be clear I cannot say how deeply I regret my very bad judgement that began this whole matter. I would very much like to be able to settle, but at 65 and with only state retirement income I see no way that that can be possible. I would now like to discover steps I am allowed to take if any, as I feel that I really must act on a need to look for a best personal situation for us now, and for my wife in particular who deserves not to have the weight of all of this hanging on her and causing ongoing uncertainty and distress.

 

Therefore:

 

1 i) I believe that if there has been no communication, and if no enforcement has been made by 6 years after the original judgement, an application can be made for the CCJ to be given set-aside status, known as “statute barred” ... which I assume does not apply to me however as I also believe that my monthly notes with payment constitute contact and acknowledgement of the liability, and therefore I cannot make that set-aside application. I assume that is indeed correct?

 

1 ii) I have seen comments giving the very strong opinion that if a claimant has not bothered to pursue recovery in the 6 year timespan, a Judge would most often consider that enforcement should not then be granted. I have seen legal verbiage quoted somewhere, two paragraphs appearing to make this same statement, though can’t now find it to quote here.

 

2 I have started to explore Bankruptcy in the past and have been strongly advised by CAB that this would be huge overkill and a far too heavy step to take. As much as I am aware of its implications I am again wondering if on balance the minuses nevertheless outweigh the plusses. I don’t yet know how a CCJ is handled in bankruptcy however, whether it disappears as with other debts, whether it can be the subject of a whole new action later if so, or whether it is protected and remains in force anyway just as with payments owing to HMRC I understand.

 

As much as I don’t care for the implication of running away from an obligation, I can’t help thinking at times all the same that the ability to breathe deeply again would be so nice!

 

No doubt there is still baggage that comes with that which probably can be onerous itself, though maybe that would amount to less for someone in my circumstances/age than to someone 20 years younger and with actual prospects to preserve.

 

I am now very much in need of informed opinion in the above regards whether on the CCJ aspect alone or also interpreting Bankruptcy within these circumstances. In order to progress I need to become more aware simply so that I might be able to understand/interpret what I may be presented with along the way. In the event that you can help that with comment, interpretation or advice I should be most thankful.

 

Kind regards

[blueda]

Hi Hannay and welcome to CAG, In England and Wales a debt is Statute barred after 6 years of non payment, this means that the debt effectively still exists but collection is not Legally enforcable. Site team have more knowledge than me on your situation , in the meantime you could read through the CAG Library for information, and also here is the Link to the CAG letter templates page.

http://www.consumeractiongroup.co.uk/forum/showthread.php?20758-creditorsandDCAs-lettertemplates&Budgetplanner

[Bandit127]

Can't do much better than my mate Lensman on MSE here, so I will summarise his post on there for the benefit of future posters on this thread:

 

1. It is not statute barred. You are still paying. And it is a CCJ.

2. Write a very nice letter to the OC about how you are retiring on benefit level income and would really like peace of mind in your retirement. Point out the circumstances of the debt were beyond your control and that you have been more than honourable in your dealings with them since.

 

If they decline then look in to getting the payment on the CCJ varied. You should only be paying £1 to £5 a month.

 

As Lensman does, I have the utmost respect for you in dealing with this the way you have so far. Hopefully you will get that respect back from the OC.

[Hannay100]

Blueda: Thank you for the welcome, and for reinforcing relevant particulars. This is how I will learn, and it is appreciated.

 

Bandit127: Thank you for adding-in Lensman's valuable guidance here for the benefit of others - it has already helped to further my understanding of certain possibilities that you too advise and that I did not know were actually possible steps to consider.

 

Thank youalso for your wishes and hopes for my good progress ... I am sure you already know how valuable your shoulder can be to one who is tender and without knowledge and experience, but I would like to underline that with my own appreciation - thank you.

[blueda]

You have came to the right place for advice hannay, keep using this site and keep us posted on how you are getting on.

Edited October 18, 2012 by blueda
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[42man]

If it was me in your situation and considering your age / circumstances then I think I would take a serious look at bankruptcy (but only as a last resort and bearing mind any assets you have) the CCJ would be included in the bankruptcy too. Even bankruptcy can cost a few hundred quid too. On some occasions people have written to the creditor to invite them to make them bankrupt. There isn't quite so much stigma attached to being bankrupt these days, it is how you come out of it at the end (normally 12 months later are you discharged). As has been correctly stated above the debt can only be statute barred if you have not made any payment for at least 6 years (5 in Scotland). Also if there is a gap of at least 6 years where you have not made payment / acknowledged in writing and despite making recent payments then it is also statute barred.

[Hannay100]

If it was me in your situation and considering your age / circumstances then I think I would take .... then it is also statute barred.

 

Thank you 42man, the comfort and direction are much appreciated indeed.

[Bandit127]

If your debt has, at any time (prior to the CCJ being issued) had a period of 6 years without payment or acknowledgement then it is statute barred.

 

However, the CCJ re-established the debt. In order for you to make this debt statute barred you would need to set aside that judgment. Since it is so old and you have been paying reliably since, I think you would struggle to get that judgment set aside.