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A County Court Judgment (CCJ) is a legal order in the UK, indicating that an individual owes money and has failed to repay. It adversely affects credit ratings and impacts your ability to secure credit.
If you have outstanding debt, your creditor (the individual or business you owe) may take you to court and issue a County Court Judgment (CCJ) against you.
The court will then decide whether there is a debt to pay and, if they think you owe the money, they will serve you with a judgment outlining how and when payment should be made.
But how does a CCJ affect your credit rating? And, what will happen if you ignore a CCJ? Receiving a CCJ can raise more questions than answers, but the more you know about CCJs and how they work, the more you can prepare.
A County Court Judgment (or County Court Judgement) is a type of court order that can be registered against you if you enter into a credit agreement with an individual or business and fall behind on your repayments.
Most creditors will try to come to an agreement with you before taking court action and you should always be given an opportunity to arrange payment before being issued with a CCJ.
Once a CCJ has been entered, the court will either issue a judgment forthwith (where the court rules that the total debt is due immediately) or a judgment in instalments (where the total debt is split into monthly repayments). This will usually depend on your financial situation and the information provided to the court.
"The amount of points your credit rating will drop by depends on various factors but a CCJ will usually see you lose around 250 points."
If you've been served with a CCJ, you may be wondering how it will affect your credit rating and for how long. From the date the judgment was entered, your CCJ will be visible on your credit file from each of the main credit reference agencies for six years.
During those six years, your credit score will be significantly lowered and you'll be viewed as a high-risk lender which can make it difficult to get approved for any other credit agreements, such as a phone contract, bank account, personal loan, or mortgage.
While some people turn to credit repair companies to address the damage done by an unpaid CCJ, the best approach to repairing a damaged credit record is to improve it gradually by demonstrating financial responsibility over time, whether by updating your current address on your credit profile, joining the electoral roll, or making payments on time.
A County Court Judgment (CCJ) can have implications for your financial health and will be visible on various public records and to certain institutions.
Your CCJ will be listed on a public register known as the Register of Judgments, Orders, and Fines, commonly known as the 'CCJ Register' for six years.
This is an online list of all individuals who have had a CCJ issued against them.
This public record is maintained by the Registry Trust, which ensures that details of all unsatisfied judgments (those not paid within one month) are accessible.
Anyone can search this register, although a small fee is required, usually between £6 and £10.
Credit reference agencies such as Experian, Equifax, and TransUnion access the CCJ Register and will incorporate this information into your credit report, which will be reflected in your credit score.
CCJs remain on your credit file for six years from the date of the judgment, even if you settle the debt.
However, if you pay the full amount within one month of the judgment, each credit reference agency will remove them from both the register and your credit report.
Banks and other financial institutions routinely check credit reports when assessing applications for credit cards, loans, mortgages, and other financial products.
If you have a CCJ, it will be visible to them through your credit report. This visibility often leads to difficulty in securing credit, as lenders tend to see people with CCJs as higher risk.
While not all employers will check your credit history, certain sectors may do so, especially those involving financial responsibilities, security roles, or high-level positions.
Employers in these sectors may request your consent to perform a credit check, during which a CCJ will be visible. This visibility could impact your employment prospects, though only if you work in an industry where credit checks are common.
“No fuss, just simple, honest advice. Communication is good and they make the process as easy as they can.”
CCJs may be issued by the court, but having a CCJ in your name doesn't mean you have a criminal offence and you can't be sent to prison for not paying or sticking to the terms of your judgment. This also means that a CCJ won't appear in any criminal record searches carried out by an employer or landlord.
However, it's important to note that ignoring a CCJ could lead to your creditor taking further action against you and, in extreme cases, this could involve applying to make you bankrupt.
The CCJ process can differ slightly but usually follows the same set of steps. Here is a guide to what you can expect when your creditor applies for a CCJ:
Before your creditor can apply for a CCJ, they must prove they have tried to come to an agreement with you over how to repay the debt.
This is known as the 'pre-action protocol for debt claims' and will usually involve your creditor sending you a 'letter of claim' or 'letter before action' to encourage you to make payment.
The letter must clearly outline the amount owed (including interest), details of the original credit agreement, and how and when payment should be made.
There will also be a reply form and financial statement enclosed, both of which must be completed and returned to the court within 30 days.
The next step in the CCJ process is receiving a default notice. This is essentially a warning letter informing you that because you have officially broken the terms of your credit agreement, your account has defaulted and you have 14 days to make payment or agree on a payment plan before further action is taken.
The default notice must clearly explain how the credit agreement was broken (e.g. missed payments) and what your next steps should be if you want to avoid court action.
Failure to make payment or agree on a payment plan will result in you being issued with a claim form or 'county court claim form', which is essentially a document confirming that your creditor has issued a CCJ against you.
The claim form will come with an income and expenditure form enclosed, which you must complete and return to the court within 14 days, clearly outlining your financial situation and how much you can realistically afford to repay towards your debt each month.
If you plan on arguing against the CCJ but you need more time, you will be asked to return an 'acknowledgement of service' form, which will allow you an extra 14 days if you return it before the initial deadline.
The final step in the CCJ process is being served with a CCJ. The judgment, which will arrive in the post, will outline the total amount owed, how payment should be made (in instalments or upfront), and the deadline for making payment.
The only way to stop a CCJ from going ahead at this point is to repay the full amount owed within a month of the judgment being issued.
This will get the CCJ removed from your credit file and the public register - as if it was never issued in the first place.
From writing off a large portion of your debt, to readjusting your budget, we’ll find a solution that suits you.
The best way to avoid a CCJ is to make repayments in full and on time and keep your creditor informed of any unexpected changes to your financial situation (e.g. if you lose your job, your income is reduced, or you have an emergency expense).
Even if you know there's no way you're going to be able to repay your debt, your creditor will be more willing to come to an agreement with you if you're open and honest about why you can't pay. For example, they may allow you to temporarily reduce your payments, pause your payments, or spread your payments over a longer period.
There are also various debt solutions that can help you deal with your debt and avoid a CCJ, such as an Individual Voluntary Arrangement (IVA).
With an IVA, you can repay your debt through a series of monthly payments based on what you can comfortably afford and any remaining debt will be written off at the end of your arrangement.
"Once a CCJ has been issued, the statute of limitations no longer applies and there is no time limit on how long your creditor can chase you for the debt."
The first thing your creditor is likely to do when you ignore a CCJ is send bailiffs to your home to seize your belongings.
They may also deduct money from your wages (Attachment of Earnings Order) or freeze your bank account or building society (Third Party Debt Order), but these actions are rare and are usually only considered as a last resort.
Some people also believe that if they ignore a CCJ for six years, it will become unenforceable by law or 'statute barred', but this isn't necessarily true.
Once a CCJ has been issued, the statute of limitations no longer applies and there is no time limit on how long your creditor can chase you for the debt.
When you're issued with a CCJ, it will be added to your credit report and the public register for six years, making it difficult to access further credit.
However, there are some instances in which you may be able to get it removed before the six years are up:
The quickest way to get a CCJ removed is to pay the full amount within a month of the judgment date.
When you do this, you'll need to inform the court in writing and provide proof of payment. The CCJ should then be removed from your credit report and the public register within a few weeks, leaving your credit score unaffected.
This is recommended if you can afford to pay off your debt in full or the CCJ is only for a small debt, such as a parking fine, as it can prevent your credit score from being damaged for six years.
Sometimes, a CCJ is issued in error or without following proper procedure. When this happens, you can argue that you weren't given a fair chance to respond or defend the claim and ask the court to cancel or 'set aside' the CCJ.
This will get the CCJ removed from your credit history and the public register but you'll need a genuine reason for getting it removed and will be asked to provide evidence to support your claim.
The court will usually agree to set aside the CCJ if the creditor should have known you had moved but didn't attempt to find your new address, if you can prove you gave your creditor your new address before the claim was issued, or if the claim was made without following the correct rules.
If you miss the initial hearing date during which your CCJ was issued, it's possible to ask for the judgment to be temporarily set aside in order to set a new hearing date, although this is usually only possible if you act within 14 days of the CCJ being issued.
The only other way to get a CCJ removed is to wait six years for it to be automatically removed.
This will happen after six years regardless of whether it's been paid in full, partially, or not at all, and can be the best option if the CCJ is almost six years old and you can't afford to pay it.
However, this isn't recommended if the CCJ was issued recently or if you're in a position to pay it in full or in instalments as it will damage your credit score for six years and your creditor can still take legal action against you.
There are two main ways of asking the court to make changes to your CCJ once it's been issued - with a 'variation' and with a 'redetermination':
If you think your CCJ repayments have been set too high, you can ask the court to lower them to an amount you can comfortably afford.
When you contact the court, you must provide details of your income, expenditure, and debt, which the court will review before making a decision.
This is known as a 'variation' and can be applied for when a situation arises that is likely to directly affect your income, such as a sudden job loss or drop in income.
There is also a court fee of £14 required to apply for a variation, so you must only do so if you're confident you can't pay.
If you know you won't be able to afford your CCJ repayments, you must ask the court to review the terms handed down to you and include a copy of your budget summary showing what you can pay within 14 days of the judgment date.
This is known as a 'redetermination' and is free to apply for as long as the court receives the paperwork no more than 16 days after the judgment date and the CCJ was a 'judgment after determination', meaning you returned your paperwork on time, the creditor refused your offer of payment, and the court decided how much you should pay.
The court will then review your application and may invite you to a hearing to give you an opportunity to discuss your financial circumstances with a judge.
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