UK BAD CREDIT ~ Adverse & Poor Credit Problems ~ Mortgage Broker Help |
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County Court Judgments - CCJ's ?
CCj is a judgment for debt in the uk county courts. If a judgment is settled in full within 30 days of the date of the judgment it will not appear in the uk bad credit register. If a credit payment is made after 30 day then a judgment will still appear in this uk register but will be shown as being satisfied.
Note: If a judgment hasn't been settled or indeed has been satisfied, this may lead to some mortgage or loan lenders turning down any uk credit application.
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BROKER HELP
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Mortgage/Loan/Rent Arrears ?
If your mortgage/loan/rent is not paid, the money owed is called 'arrears'. These arrears are known as 'priority debts', which means the consequences of not dealing with them are serious for your uk bad credit status - there is a risk of eviction if the loan is secured on your uk property. If you can't pay your mortgage/loan/rent, you have missed payments or you're worried your payments are not being made, sort things out as soon as you can. Even if you have other debts, make sure you prioritise these arrears.
Things to consider to help you get your credit status back on track: 1] make a list of all your bad debts and put them in order of priority 2] write down all your income + expenses - then see how much you've got to pay your debts 3] work out how much you can afford to pay to each credit or (a person or organisation you owe money to) 4] consider seeking advice from a uk debt management agency such as National Debtline 5] most importantly, talk to your lenders or landlord - try to reach an agreement about paying outstanding credit or arrears, but don't agree to pay more than you can afford. One way to do this is through an agreed debt management plan.
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BROKER HELP
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Loan & Credit Defaults ?
When you sign a uk credit or loan agreement you are promising to pay back your loan or credit in accordance with the terms and conditions of the agreement. You must keep up with your repayments or apply to defer. Failure to do so will result in them taking further action to recover these outstanding credit arrears.
This may involve the use of a bad debt collection agency, who may call at your home to recovery the sums sue, or legal action be taken against you which may affect your uk bad credit rating and could lead to an attachment made against your earnings.
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BROKER HELP
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Individual Voluntary Arrangement (IVA) ?
IVA's were introduced with the intention of allowing uk individuals to avoid bankruptcy & make maximum possible recovery to their creditors. An IVA is seen as a viable alternative in the uk to bankruptcy as the debtor may keep his 'tools of trade' plus in the case of a professional person, continue to practice, or hold company directorships. IVAs can be set up for either a company or person. An uk insolvency practitioner petitions the High Court for protection for a borrower debtor under an IVA. A proposal is put to the credit or of whom 75% must accept.
If this is achieved, the arrangement becomes binding upon debtor & all credit or named in the agreement & is noted in the uk bad credit files. If the debtor fails to meet payments under an IVA the Insolvency Practitioner is likely to petition for the individual to be made bankrupt. Whilst bankruptcy may lasts for only 3 years some credit or insist that IVAs last a longer period.
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BROKER HELP
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Bankruptcy ?
Is when a person has been declared bankrupt in accordance with the uk insolvency act 1986. A supervisor is appointed to receive a bankrupt person's earnings. The bankrupt is permitted to receive a credit allowance on which to live with the balance being reserved for the benefit of his or her creditors. A bankrupt person is not permitted to hold bank accounts or apply for credit in excess of £250 without the court's permission. bankruptcy.
After a period of normally 3 years, the person with the bad debt is discharged from bankruptcy, his debt being treated as paid. A uk discharged bankrupt is likely, however, to experience severe difficulties in borrowing money. UK Bad Credit reference agencies will normally identify former discharged bankrupts for 15 years after their discharge.
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BROKER HELP
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