Court Appearance Tomorrow

[willjohnson]

Hi, i need urgent help. I sett aside a court appearance for outstanding debt to a credit card due to the judgement being sent to the wrong address. I now have to go to court tomorrow, how do i approach this and what can i expect?

[powelll]

We need more information please! How much is the debt for? Do you owe the money or are you defending or partly defending the claim? Who is the creditor? What is the background that led to them taking county court action?

[willjohnson]

Haven't paid my credit card bills for 2 and a half years. Have mountains of debt. I owe credit card money and its to Cabot Financial. I have been to CAB and will be applying for bankruptcy over the next couple of weeks. Its for about £9,000.

[powelll]

OK, thanks for that. It's still unclear why you applied for a set aside though - this puts a CCJ back to the 'claim' stage to give you a chance to defend or partly defend the claim. Basically the hearing will be in judges chambers which is just a big office usually just you the judge & representative from the creditor.

 

If you have had relevant advice on all options open to you and you have decided that bankruptcy is the best way and you are fully aware of all implications then to be honest a CCJ isn't going to be an issue because the debt will be written off as part of your bankruptcy anyway. So in theory you don't even have to go along if you don't want to - it's not a criminal matter it's just civil court. If you don't go a CCJ will be issued for the claimant and will usually be a forthwith judgement ie you owe the whole amount now. But as I say if you are going bankrupt it makes no odds

 

( I trust CAB have covered basics such as checking for priority & non priority debts, doing a budget sheet, seeing if you have any surplus income, explaining other alternatives to bankruptcy eg self negotiation by offering creditors a share of your surplus income, possible free debt management plan, poss IVA depending on your circumstances, maximising your income by checking you are getting any benefits etc you may be entitled to. They should also have covered bankruptcy in detail )

[willjohnson]

I was unclear what to do with it, so set it aside to give me more time to work out what to do. Then came on here and took their advice and went to CAB and took their advice and decide bankruptcy was the best way as i have other debts on credit cards too. The man at CAB said i should go to the court hearing so do i go along and tell them i am going to go bankrupt ro say something else?

[Belaflat]

Do you own your own home?

 

The reason I ask is if you do and your creditor is made aware you are going bankrupt, they may go for a forthwith judgement together with a charging order.

 

It may seem unimportant but if you do have your own home but with little equity and you manage to keep it after bankruptcy, the charging order will still be there to haunt you at a later date.

 

If you have no assets or home then it doesn't really matter, you could just send a letter explaining you are going bankrupt and that is it. Any judgement will be wiped out in bankruptcy anyway.

[Having_A_Knightmare]

Hi

 

Theres always the chance they will not have the credit agreement with them and this coudl be total defence.

 

HAK

[willjohnson]

I don't own a home and have no assets as such. Would it be that easy to ask if they have the credit agreement?

[Having_A_Knightmare]

Hi

 

There is also the fact of unlawful bank charges with in the amount owing.

 

HAK

[powelll]

they may go for a forthwith judgement together with a charging order.

 

They can't do both at the same time. The OP would get the forthwith judgement ( ususally with 28 days to pay ). then the creditor has to apply to the court for a CO. There will always be a hearing generated for this to give OP the chance to go along & argue against it. The reason I say this is that if he goes bankrupt before the CO is made ( which it sounds like he will be doing ) then the debt will be included in his bankruptcy.

 

The man at CAB said i should go to the court hearing so do i go along and tell them i am going to go bankrupt ro say something else?

 

The only reason I mentioned not going along was to advise that it's your choice ( but I haven't made that v clear, sorry! ) ie if you don't want to go then don't. But yes, if you do go it will be a case of advising the judge that you can't make an offer of payment & you have had some advice & are going to go bankrupt. The problem you then have is the other side may try to get a CO application in super quick...

[Having_A_Knightmare]

They can only get a C/O if you default on your repayment plan set by the court.

 

HAK

[powelll]

I don't own a home and have no assets as such. Would it be that easy to ask if they have the credit agreement?

 

Sorry - Ignore all the CO stuff then it won't apply. Which means the debt can't be secured before you declare bankruptcy

[willjohnson]

I am a little confused now! The thing i am most worried about is if they can claim part of my earnings every month. When i turn up do i tell them i am intending to go bankrupt or not? Or do i just state that i did not receive the letter at my address and that i have been to the CAB and am taking their advice at the moment?

[powelll]

They can only claim part of your earnings via an Attachment of Earnings which is another method of enforcement they can apply for only once you have defaulted on the CCJ. Even if in theory they got an AofE in place before you declared bankruptcy the debt would still be written off and the AofE would stop