CCJ's, defaults and how bad credit loans could be the answer.

CCJ's And Defaults

CCJ's and defaults are something that we hope will never happen to us, but if your financial circumstances take a turn for the worst it pays to know what to expect. Often these problems are out of your control, and are due to illness, personal loss or involuntary unemployment. Although these problems can hit you hard, there is a way out of them, and you can still secure the credit that you need.

What are CCJ's?

CCJ's, or County Court Judgements, are court orders against a person that occur when they owe money and cannot or will not pay it back. These judgements declare that the debtor must pay back the money to the lender. One of the most common reasons for CCJ's is when someone gets into arrears. Being in arrears means that you owe outstanding money on something, usually referring to mortgage payments. Once you have become far enough in arrears on your mortgage payments, then you will default and the legal process will begin.

What are the steps in the CCJ process?

Firstly, you will be sent a summons that will allow you to put down your income and expenditures, and an amount that you can repay back to the creditors. If this amount is accepted, then you will receive an order detailing this amount. If the amount is rejected, then you will receive a CCJ for an amount to be decided on by the court, which may be more than you can afford. If the amount is too much, then you have the right to appeal within 14 days. It is important to do this, because failure to pay the back the money will allow the creditor to take more severe action such as seizure of goods or property.

How can I avoid CCJ's?

The only way to avoid a County Court Judgement is to get yourself out of arrears, perhaps by consolidating your debt or improving your budgeting. If you are unable to avoid getting into arrears, then a CCJ might be inevitable. Although having a court order against you will affect your credit rating, there are some benefits to CCJ's. Once the judgement is issued then a repayment plan will be put in place, and it is likely that you will not pay more interest on the amount that you owe. This will help you to pay off your debts more quickly and move out of the red.

Can I still get credit after CCJ's?

Although your credit rating will be significantly affected by a CCJ, there are companies that can still help you get the credit you need. Online companies such as 24 Hour Loans have some of the best deals, and can often help people who have the poorest credit ratings.