Should I go bankrupt because of old ccjs over 6 years old ?

[Marcus43]

Firstly thank you to all of the posters who have ever replied to any one on here. You are life savers I am sure. Indeed forums like this, helping your fellow man, lift the spirit just by existing.

After many, many years I am at the stage, finally, of my income covering my basic out goings. However I did buy my head in the sand and suspect I have old County Court Judgements, mostly over 6 years old that have "disappeared" from court judgement registry at the trustonline website. I also just discovered a couple that will be gone in a year and one more in 3 years. I moved so they were all issued after I had moved (and I think the last one was actually filed after it would have been statute barred). They would all total something like £40,000.

I am very lucky that I am not being chased by any one any more, at least right now, but I am at the point where I would like to start to get my life back again. What I want more than any thing is to be able to buy a modest home again one day.

My questions is this, should I go bankrupt because they will all come back to haunt me in the future or should I do nothing and hope for the best/deal with them on a case by case basis, on token payment plans, if they do ?

If I do the later my credit file (I think) will be clean in 3 more years and as I have not gone bankrupt I guess I would be able to get a mortgage. If I do go bankrupt, from my online searches, it looks like I might be able to get a mortgage theoretically from a niche company after 4 years (if I am discharged after 1 year and finish payment restrictions after another 3 years).

I don't know what to do. Any advice from anyone who has gone down, has experience of, either route would be greatly appreciated.

I have searched and searched before posting. However what I found was people saying that ccjs fall off you credit reference agency file after 6 years after the ccj is made, unless a dept collecting agency keeps "updating" their last entry, but even after this has happened that the debt is still technically enforceable and I would have to worry for the rest of my life about some form of enforcement happening. On that last point, the enforceability, I have read some people saying that after 6 years a ccj isn't enforcable, others saying it is forever, others saying that they would have to go back to court and the court won't approve it because its been over 6 years since the original ccj was issued. And yet others saying for at least some forms of enforcement going back to court isn't necessary.

[Ruby]

Re: Should I go bankrupt because of old ccjs over 6 years old ?

Have you tried to speak to Experian C.R.A.? From what I have read on my credit profile, Defaults and CCJ's stay on record for six years, whether settled or not. After that they are 'removed'. I have not seen this in practice yet. The first of mine should drop off end of this year. My gut feeling is not to declare yourself bankcrupt (it seems extreme) as the older the Default, CCJ the less relevance it has in obtaining credit.

[Crowie]

Re: Should I go bankrupt because of old ccjs over 6 years old ?

Have you thought of looking at some kind of a voluntary arrangement with creditors (IVA) or debt reduction plan? These generally last for 5 years, and are agreements negotiated with your creditors. You are only expected to repay back what you can afford, and it's possible that they might waive or reduce interest etc.. Provided you keep these payments up any monies outstanding at the end of the 5 year period have to be written off.

It's on your credit file, but my understanding is that lenders take a more positive view in many cases as this is good evidence that you're not seen to be 'running away' from your liabilities.

You can get more information from your local Citizens Advice Bureau, or perhaps take a look at the Consumer Credit Counselling Service on www.cccs.co.uk Doesn't cost anything, and I suspect after the economy being pretty much in ruins for the last 4 years you're not alone.

Good luck....

[TUTTSI]

Re: Should I go bankrupt because of old ccjs over 6 years old ?

I agree with Ruby, CCJ's come off your record after 6 years have elapsed.

So I really do not see any point in making yourself bankrupt. Debts over 6 years old are outside the statute of limitations so they cannot come after you unless you have been in contact with the various creditors during the six years of the CCJ.

If you go for the voluntary arrangement as suggested by Crowie you will be tied in again for a further period of time if they agree to it and depending on what you owe collectively you may not be able to satisfy the creditors and it is a costly job because you would have to employ a firm that can handle this type of arrangement and they do not come cheaply. it is as onerus as a full bankruptcy in that you still will not be able to obtain credit or hold a bank account with O/d facilities etc so i cannot see that this is viable for you.

[Marcus43]

Re: Should I go bankrupt because of old ccjs over 6 years old ?

Thank you for the replies :-)

There is no way I could pay an IVA, I only just make enough to cover my outgoings. I don't have any spare income. I have been "out" to the pub, things like that about twice a year for the last 10 years, thats the extent of my spare income.

I know the CCJs will drop off soon and think that the biggest ones already have (as I expect they went before I ever looked). But I don't want to get myself back on my feet and 15 years down the line when I am almost retired get an enforcement order against my house, if I am able to afford a mortgage again :-(

[Guest]

Re: Should I go bankrupt because of old ccjs over 6 years old ?

I would say that it would be insane to do anything other than wait for them to drop of your credit file.
As said they will be statute barred and unenforceable if you live in England and totally erased if you live in Scotland.
if you contact them you run the risk of re-setting the clock for another six years.

Don't worry about an enforcement order, it will not happen.

D