Tell Your Friends About ArticleMap.com™ Sign-Up Free  |Member Login  

article marketing
ArticleMap.com

Home | Finance | Tax Management


CCJs Soar

By: Darren Ferneyhough

The number of people with CCJs registered against them for debts rocketed in the last year in another alarming indication of our over-indebtedness.

A total of, 843,853 people had CCJs registered against them, up by a third compared with last year and the second year in a row that the figure has increased.

The Registry Trust, the organisation that tracks the figures on behalf of the Lord Chancellor's office claims that lenders are bringing cases to court much earlier than before to make sure they have a claim on the debtors property.

A CCJ is the first step in a legal process that can lead to bailiffs knocking on your door, demanding goods to the value of the debt. Also, it is the first step for a lender to apply for a charging order, which converts an unsecured debt into a secured one, enabling it to make a claim against the value of the borrower's property.

CCJs are of course best avoided altogether if possible, and for homeowners with a number of debts which are proving difficult to stay on top of and are in danger of getting CCJs as a result, an oft used and valuable tool is to consolidate a number of smaller, unsecured loans by taking out a debt consolidation loan using the equity in their property to secure a lower interest rate, which can serve to lower the monthly cost of servicing their debts, especially if combined with a longer repayment period.

A CCJ stays on a person's credit file for six years unless they pay the balance within a month of being issued. Even if the debt is paid within the six years, the CCJ will remain on file, but will be marked as 'satisfied'.

Even for consumers who already have CCJs, there are still solutions available to get their finances back on track. There are a number of lenders who specialise in providing debt consolidation loans to consumers with adverse credit, and who will lend to consumers with not only CCJs, but also mortgage arrears and even to consumers in an IVA or bankruptcy.

Many lenders have had bad debt levels soar in the last few years as more consumers become aware of the less stringent bankruptcy laws and Individual Voluntary Arrangements. The most recent financial figures from the banks show that Lloyds TSB, HSBC, Barclays and Royal Bank of Scotland (owners of NatWest) collectively wrote off £11.6bn in customer bad debts last year.

Registry Trust chairman Malcolm Hurlston said: ‘Judgments are an important item in creditors' armoury, particularly for dealing with people who are 'won't pays' rather than 'can't pays' and the sharp rise indicates that it is creditor behaviour that is changing.’

He continued: ‘Creditors are seeking judgments as the necessary first step to obtaining charging orders against debtors' properties, thus securing their share in any equity. It is a further warning to homeowners who may have borrowed too heavily on top of rising interest rates and escalating house prices.’

Article Source: http://www.articlemap.com

Darren Ferneyhough is head of IT at The Money Helper and an expert in a number of areas in the UK financial services market. Darren currently writes for the online portal Loan-Sense.



Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Tax Management Articles Via RSS!

Additional Articles From - Home | Finance | Tax Management
Sign Up Free | Learn More
Submit Articles
Member Login
iTop Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds
Press Release
About Us
Link To Us
Contact Us
Privacy Policy
Terms of Service
Highly Recommended:

Sponsored Ads:

Recommended Hosting

Related Sister Site:Health Article Directory
Submit Health Articles Now

Copyright © and All Rights Reserved.
Use of Our Service is subject to Terms of Service and Privacy Policy.



Powered by Article Dashboard