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  • Legal FAQs

    CCJ Recovery

    Hi All,

    I have a CCJ issued against an ex tenant and (obviously) it hasn't been paid. Its the first one I've had to do and I'm just wondering next steps? My letting agent sent me a link to a law firm with different options and also suggested this: Information Order (IO), Attachment of Earnings Order (AEO).

    Problem is I'm unsure of her current address and employer both of which are required by the County Court. Trying to get said information as we speak.

    DCBL (as in the TV firm) offer a 'finding' service for £75 + VAT where they check credit applications etc. This would be in addition to the £66 base fee.

    Is it worth me spending more money on the IO and AEO with the County Court (£110 each I think) or will I just bite the bullet and give it straight to DCBL? The way I see it is I might get a couple of quid a week from the AEO or I might get the full amount from DCBL. Knowing the ex-tenant I'll probably get nothing.

    Anyone had any experience of this?

    Paul

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    Hi Paul.

    My advice would have been not to apply for a CCJ unless or until you have the information needed, forwarding address for example. I appreciate, as a landlord, this is not always possible. In fact its very rare I have found if the tenant has rent arrears & recharges. And is moving away from other commercial debt. LL are not the only victims.

    I would recommend a good pre-tenancy process to collect the information you need and carry out the checks to mitigate the future risks. Though this doesn't help you in this situation.

    My organisation has experience in this field and a structured process that, if required, traces the FT, then engages to recover the debt.

    We have been successful arranging payment plans to suit all parties before court action is required.

    AEO is a favourable option once the judgement has been served. DCBL has not proven successful as this can be a long drawn process and the power is still with the FT.

    It would be worth me understanding the level of debt and also the tenancy agreement before I could advise and possibly help you going forward.

    Regards

    LDC

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    It's not a massive debt but its the way in which it accrued that rankles. Have you a contact email?

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    Hi Paul.

    I was only taking the other day actually about FTA being an emotional debt. LL can get a bad rap, I believe most are caring people who want to do well but have a philanthropist gene. We like to help people. And we do, at the drop of boiler pressure.

    So I agree. (*Moderator note: Contact details removed as member has not passed probation*).

    Regards.

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    Forget rankling

    Move on

    You will never recover.

    The civil recovery process in the UK is uselesss and not fit for purpose.

    Better to have RGI and 2 months deposit at the outset.

    If the tenant has no decent job or assets forget it.

    I wasted hundreds of pounds on civil recovery.

    The law protects defendants even if they lie in Statements of Truth.

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    Good morning.

    Prevention is always better than cure, though in the housing sector it can prove more difficult. Running void costs & security risks, time & cost to manage or oversee the letting, the property location, the target audience can all influence LL how applicants can be selected and signed up.

    Change & people go hand in hand, and if you are fortunate to receive a  two months rent advance I have seen that disappear within the first few months of the fixed term. (So having a robust rent arrears procedure is a must, but implementing it and sticking to it is even more important. People get results Procedures don't.

    RGI is another good idea but with any insurance there are and will be caveats. I find insurers are the very best legal people I have ever met. If sunlight comes through the policy they bathe in it!  (Plus how long will it be until more and more LL take this up and a good security blanket, I wonder what direction the premium will go at that point?

    I believe LL need to have a shift in their thinking and change their behaviour towards the this topic. If FTA are owing we should do all we can to recover this debt or/and support fellow LL. Not walk away and put it down to a bad experience. If FT owe arrears and the correct procedures are followed CCJ can be applied. Therefore going back to the beginning of the tenancy cycle, when the pre-tenancy checks are done and the CCJ is flagged this is the provision of information for the LL to make the right decision for their business and support the previous LL. Lets break the cycle of too many "bad experiences"

    I find, in the areas I work, people run away from debt. This isn't a criticism its a fact I have seen. PLL and even RSL can work independently we need to work together to support our own business which allows us to support people who what to rent. No Rent No Business!

    People have such great and diverse views and opinions in property, i'd be really interested to hear these.

    LDC

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    I get what you are saying but my experiences render it impossible for me to bother with civil recovery.

    I am simply not going to spend hundreds of pounds for the benefit of following LL who can then see the CCJ evidence and reject

    RGI and 2 months rent as a deposit isn't perfect I'll accept.

    But if EVERY LL registered their good and bad tenants with LRS there would be no need for CCJ

    LL could talk to eachother.

    Eventually tenants would realise that rent defaulting results in a duff LRS entry!!

    Not good for bad tenants if every LL and LA uses the LRS database!!

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    Hi. I think we are on the same page on this one.

    If LL change their behaviours towards this topic then I believe it will reduce the number of CCJ requested meaning LL get their due rent. It is a big circle of change;

    Now a FT is assuming/knowing the LL won't chase the FTA because "its not worth" their time, effort or money. They may be right. We have to change the thinking.

    (This is no marketing pitch) - My company specialising in FTA arrears. So tracing and then engaging with the FT to recover the debt owed to the LL.

    To do this right we, me & the client, have to be prepared to see the process through if required. (But we hope not. Court action is always the last step, we don't want to increase the debt for FT with the recover charge.)

    I see the court order fee, which can be as little as £25, as an investment. Which you can also recover. LL invest in property, insurances so why not invest in the recover of their debt and at the same time reduce the risk of it happening again. (see comments from greg6)) (Of course this takes time and needs more & more LL to get on board)

    LL provide a great service, more then a roof over a tenants head in many occasions. Why is it deemed okay for people to break a contract, leave 00's usually 000's of debt not to mentioned the large expense getting you asset back up and running. It's not cool!

    I am passionate out this subject and always open to other ideas, experiences and to be told I am wrong.

    Lets wipe out FTA altogether, but to do that LL have to be committed to seeing it through, completing the right pre-tenancy checks (basically finding out does your applicant own someone money) if they do why take the risk in the first place. Or making the FT go back and pay the FTA. (Investment returned)

    LSR database - Great idea. You are right LL need a centralise way of communicating to create their own support community.

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    Check your household insurance policy. The better ones cover unsatisfied court awards. The insurance company pays you and recovers the costs in your name - assuming that it's worth their while.

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    AT LEAST you got a ccj on him / her. That will stick around for a good 5/6 years. It will cause them hell.  I once had one for an unpaid gym membership I forgot about when younger, caused me all sorts of problems, I eventually paid it which showed on the credit file and improved it, but the record of it still showed. So maybe your best bet is to just slap the ccj on and forget about it. When he gets older and wants a mortgage / new job / phone etc he may have to pay it like me.

    unless you have get a firm like findermonkey etc to find out where he works, then yes certainly get an attachment order, it’s interesting and satisfying if you can do this as every month they will be reminded on their pay cheque of the money going to you, hopefully remind them not to be such scum in the future Smile

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    Hi Paul

    Would like to hear your thinking on your topic, now you have a number of thoughts being passed back. Smile

    Good topic BTW, people are passionate about this.

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