- Wed Jan 15, 2014 6:39 pm
Treat the CCJ and the CO as two separate things.
Let me explain
The CCJ is what the N245 is for, as the repayment rate is set in connection with that and that only. The CCJ is part that needs to be altered, so it is this that must be varied.
The CO normally ONLY converts an unsecured debt, with a CCJ to a secured debt with a CCJ. As Sarah has said, at the CO hearing the judge may decide to deal with the CO only (and that is quite common). You are within your rights to inform the Judges that you are applying for a variance on the CCJ by way of a N245, due to your current unemployment.
To reinforce this a wee bit more, it is rare but not unheard of, for a Judge to allow you to answer three questions only.
Are you xxxxx?
You are aware that a CCJ exists for a debt you have?
Do you own the property, either one you own or with others?
They may only allow you to answer Yes, and then immediately issue the CO, without any interaction by YOU or the creditor.
A good judge will allow you to make requests such as that the judge stipulate in the judgment that no interest etc be added. You could also suggest that they direct that no order for sale be made unless repayment agreement defaulted on.
A VERY good judge may allow you to explain your financial situation, but they CANNOT change the repayments, as that can only be done by the N245 route, but they can direct the creditor to allow you time to submit the necessary paperwork for the variance.
Now there are a LOT of people with COs, and the best advice is to make sure the repayment is as sustainable as possible, that is at a rate you can afford and keep on affording. I know several people who have had COs in place, then varied via N245 to get the payments down to £1 a month, and as long as they pay that then there is noting the creditor can do, as YOU will be complying with the repayment set by the court AND complying to the terms of the CO.
For some this can be a win win situation