Author Topic: Civil Court Action  (Read 1640 times)

cudabell

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Civil Court Action
« on: Dec 14, 2010, 10:02:01 PM »
I have just received a court judgement against accruing costs in excess of £25000.  The mortgage is my name only and I have recently got married.  Can the court ask me to sell my home if i cannot pay this sum?  What will happen to my wife and our 4 children?  Do they have rights?

James Falla

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Re: Civil Court Action
« Reply #1 on: Dec 15, 2010, 04:28:47 PM »
Hello Cudabell
 
I assume you have received a county court judgement (CCJ) ordering you to repay the debt that you owe. If you fail to pay the judgement, the court will not force you to sell your home. However, the creditor may then apply for a charging order to secure the debt against your property. If this happens then again, you can not be forced to sell your house. However, the debt will accrue interest of 8% pa. When you eventually decide to sell this debt would be paid before you receved any remaining equity in the property.
 
Do you have other debts? Have you considered a debt management plan or IVA to resolve the problem?
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cudabell

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Re: Civil Court Action
« Reply #2 on: Dec 15, 2010, 11:12:22 PM »
Thanks for the reply.
 
I only have one other debt which is approx. £1600 to DWP. I have not recieved a CCJ yet as judgement was only given on Monday and I havn't recieved a response pack yet. I have been told to dispute the costs, and to ask for a full breakdown to be put before a judge. In the meantime I have to employ a law cost draughtsman to go through the paperwork to check the costs and hopefully negotiate a more reasonable figure.
 
Can you confirm if this is correct?
 
Can I offer monthly payments on this debt? And what level do you think would be acceptable?
 
Regards

James Falla

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Re: Civil Court Action
« Reply #3 on: Dec 16, 2010, 04:44:32 PM »
Hi Cudabell
 
If your creditor is in the process of applying for a CCJ, then you will be issued with a formal admission form. You can dispute the debt or admit it and detail your ability to pay. You do not need any outside help to do this but you will have to list your income and reasonable outgoings to establish your disposable income (the amount you can afford to pay each month).  Doing this exercise will be the basis for deciding what you should pay towards the debt each month.
 
If a CCJ is then issued bemanding that you pay the full amount or pay in installments that you can not afford, you can apply to the court for the CCJ to be varied. You would need to use an N245 form for this. 
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bankrupcyus

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Re: Civil Court Action
« Reply #4 on: Dec 21, 2010, 05:40:18 AM »
New Bankruptcy Laws can be defined as typically a formal request to the federal court for relief from your growing debts by restructuring your debt amount.

James Falla

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Re: Civil Court Action
« Reply #5 on: Dec 21, 2010, 05:52:28 PM »
Hi there Cudabell
 
Have you received your admission forms through regarding the potential CCJ yet? Let us know if you need further advice to complete them when you do :)
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