County Court Judgements And Bad Credit Mortgages
A County Court Judgement is an order by the courts for one party to pay an amount owing to another party. County Court Judgements, or CCJs, affect people’s credit files and will normally require the applicant to abandon the prospect of applying for traditions mortgage products and instead apply for bad credit mortgages.
When the order is given by the County Court, the creditor will be required to repay the debtor within a specified period of time. If this is not done, a County Court Judgement will be recorded on the creditor’s credit file. This entry can remain on the credit file for six years if it is not settled in the meantime. Having impairments to a credit file such as CCJs can make it extremely difficult to obtain standard mortgages from high street lenders.
Because County Court Judgements are so common, a large number of people are unable to apply for standard mortgages. This could be viewed as unfair as CCJs can be recorded on a person’s credit file for trivial amounts of money and sometimes without their knowing. The massive growth in the number of people who suffer from this form of adverse credit has lead to incredible growth in the market for bad credit mortgages in recent times.
In addition to mortgage applications being affected by outstanding County Court Judgements appearing on a credit file, CCJs that are paid in full at a later date can remain on the credit file for up to six years. Lenders will therefore be able to see that there was once an outstanding debt despite the fact that is has since been cleared. Although the entry will indicate that the debt has been settled, it may not be removed completely. This means that a person may be forced to apply for bad credit mortgages several years after paying off their County Court Judgements.
Many lenders will now consider mortgage applications from people who suffer from bad credit. In fact dozens of specialist lenders that focus solely on bad credit mortgages have appeared in recent years so individuals who have bad credit will not necessarily be unable to buy a home. Although the recent credit crunch has seen such lenders dwindle in numbers in recent times, specialist lenders still exist and offer mortgage products.
Because the market for bad credit mortgages is highly specialised and many of the lenders are too small to open their own branches to the public, it may be necessary to apply for bad credit mortgages through a mortgage broker.
An independent mortgage broker will be able to search the entire market for bad credit mortgages using special software. This can save both time and money when compared to searching for a mortgage on your own because an independent mortgage broker will have access to the entire mortgage market and will be able to find the most suitable bad credit mortgages to suit your personal situation. If you require a bad credit mortgage product contact an independent advisor today for impartial advice.
michael sterios
http://www.articlesbase.com/finance-articles/county-court-judgements-and-bad-credit-mortgages-417412.html
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Bankrupcy and owning property?
Can you declare yourself bancrupt if you own property?? I don’t think you can as you have an investment but a friend who wishes do delclare herself bancrupt thinks you can. She has debts of approx 8K (has mortgage arrears but has sorted it) and if getting county court judgements for loans & credit cards. She wants to declare herself bancrupt but doesn’t want to lose her house as she has kids
I think they,free up the equity in the house to pay off debts.
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The house is an asset that would have the money released from it, for sure.
I doubt you can declare yourself bankrupt and still keep a mortgage. In fact, I would be annoyed if you could.
Also, 8000 is a tiny, tiny amount to declare yourself bankrupt over. If she can afford a mortgage, she can afford repayments on 8000.
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do not go bankrupt for such a small amoount, the average person is 25,000 ini debt. Tell her to get some advice first from citizens advice bureau. She can offer to pay small amoounts to all the companies or move into a smaller house and clear off debts with the money made there, but my no means should she go bankrupt. I do not hink she has any idea what damage that can do to her future and her kids.
If her kids grow up and want a job in finance they quite often do a finance check and they will no be able to get finance because of the address being same as parents.
Write to everyone she owes and ask them for assistance first. Go online and look for problems resulting from bankruptcy.
good luck
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I work in insolvency (in the UK) and would never suggest anyone goes bankrupt, unless it is the last resort.
If she owns her house or the equity in the house then a Trustee of the Bankruptcy estate has an interest in it. That can lead to the property being repossessed and sold if the Bankrupt doesn’t purchase their interest.
Really, £8k isn’t a lot of debt and if possible, she could get a long term loan. Also depends on employment etc too, but I think it would be a bad mistake to go bankrupt (costs money to petition for your own bankruptcy too)
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Being an senior insolvency administrator since 2002
She will not lose her "primary residence", but the courts will take everything else. The bankruptcy will also follow her for the rest of her life, in spite of what the law is. Think about it, if she owed YOU a thousand pounds, and the court absolved her of any legal obligation to pay it all, would you suddenly stop wanting your money back after 7 years? (or however long it is?)
She owes the money. She should work with her creditors and figure out a plan to pay it back, even if it takes her ten years. Otherwise her kids will NEVER learn any personal responsibility, will they?
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You can keep your house if it’s worth under a certain amount. Under Chapter 7 bankruptcy, you can redeem your house by agreeing to continue to pay your mortgage. You are also allowed to keep a car if it is under a certain value. You will be asked to declare the value of certain categories, like furnishings, clothing, investments, collections, cash on hand, bank accounts, etc. You will then be asked to list all debts and all monthly expenses, from the cost of clothing and utilities to the cost of feeding your dog. Based on those, the court will make a determination as to whether you qualify for Chapter 7 bankruptcy. If you do, you will be allowed to keep your clothing, food, household goods, eligible car and house, and any other assets under a certain limit (We had so few assets that we were allowed to keep everything).
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Is this house the primary residence or is this just property???
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