This guide will cover everything you need to know about CCJ removals, from how to get a CCJ removed to how to improve your credit score after a CCJ.
If you have unpaid debt, your creditor (the individual or business you owe money to) may take you to court to force you to repay what you owe with a CCJ. This is a type of court order that instructs you to repay your debt in full or in regular instalments.
CCJs usually stay on your credit record for six years before being automatically removed, but there are some situations in which it might be possible to get a CCJ removed before the six years are up.
What is a CCJ?
A County Court Judgment (CCJ) is a type of court order that might be issued against you if you have an unpaid debt and your creditor goes to the court for help to try to recover the money owed.
Usually, a creditor will only apply for a CCJ after they have failed to come to an agreement with the debtor over the unpaid debt. They must also send you a claim form giving you a chance to make up for missed payments before serving you with a CCJ.
Once the court has granted a CCJ, you will either be issued a judgment forthwith (where the full balance is due immediately) or a judgment in instalments (where you pay your balance in smaller amounts).
It’s important to cooperate with the court when they ask for details of your income and expenditure. Ignoring a CCJ claim form will lead to you being issued a ‘default judgment’, which is when the defendant fails to acknowledge a claim or put in a defence and the court issues a CCJ without knowing anything about the debtor’s circumstances.
How will a CCJ affect my credit score?
From the date your CCJ is approved, it will be added to your credit file from all of the major credit reference agencies (Equifax, Experian, and TransUnion) and a public register called the Register of Judgments, Orders, and Fines for six years.
During this time, your credit score will be damaged and you’ll find it difficult to access most forms of credit, such as a loan, mortgage, phone contract, and even a bank account. This is because a CCJ indicates that you have handled credit poorly in the past and may struggle to stick to another credit agreement.
However, the good news is, there are steps you can take to improve your credit score during and after a CCJ and making payments in full and on time can show lenders that you are capable of sticking to the terms of a court order and taking a proactive role in repaying your debt.
How can I get a CCJ removed?
CCJ usually stay on your credit record for six years regardless of whether they are paid during this time.
However, there are some situations in which you might be able to get a CCJ removed sooner, freeing you of your financial obligations and leaving you free to get on with your life.
We’ve outlined the three main ways of removing a CCJ below:
Pay the full amount owed within 30 days
The quickest way to get a CCJ removed from your credit record is to pay the full amount owed within the first 30 days of receiving the judgment.
This is recommended if the debt is for a small amount (e.g. parking fine) as it can prevent the CCJ from appearing on your credit file for six years and damaging your credit score.
Once you’ve repaid the debt in full, you can apply to the court for a completion certificate. This can be used as proof that you’ve repaid the debt and don’t need to make any more payments.
Apply for it to be set aside
If you don’t believe you owe the debt or you weren’t given a fair chance to challenge the claim, you can apply for it to be cancelled or ‘set aside’.
This won’t remove the CCJ completely and you will still owe the money, but it will reset it back to the claim stage so you can make your argument to the court.
There is a court fee required to submit an application to set aside a CCJ (currently £275) and you’ll be invited to attend a court hearing.
Wait six years for it to be removed
If you admit to owing the debt but don’t have the funds to repay it, you can wait six years for it to be automatically removed.
However, your creditor can still take legal action against you at any time during these six years and you won’t be protected from bailiffs visiting you or your goods being seized.
If you pay the debt within these six years, it won’t be removed from your credit file but it will be marked as ‘satisfied’ to let lenders know that it’s been paid.
“No fuss, just simple, honest advice. Communication is good and they make the process as easy as they can.”
What happens if I pay a CCJ after 30 days?
If you repay a CCJ after 30 days, it will still appear on your credit file and the public register for six years but it will be marked as ‘satisfied’.
This will let prospective lenders know that whilst you still have an active CCJ, you have repaid your debt and are capable of managing your financial obligations responsibly.
Before a CCJ can be marked as satisfied, you may need to send proof of payment from your creditor so the court can confirm that they have received the money.
When would the court agree to set aside the CCJ?
If you don’t think you should pay a CCJ and want to get it set aside, it’s important to note that the court will only agree to set aside a CCJ in rare situations.
Typically, the court will agree to set aside a CCJ if:
- Your creditor should have known that you moved and didn’t make an effort to find your new address
- You can prove that you provided your creditor with your new address before the CJJ was issued
- Your creditor didn’t follow the right process when issuing the CCJ claim form
- Your creditor didn’t give you enough time to challenge the CCJ
The key to getting a CCJ set aside is to act promptly and provide as much information as possible so the court can accurately assess your financial situation.
Many people don’t know they have been issued with a court claim and only find out when they go to apply for a loan or a mortgage. This can happen if the claim form was sent to an old address and no attempt was made to find your new address.
Some creditors have even been known to purposely send a claim form to an old address in an attempt to prevent you from challenging the claim but if the court can prove that this was the case, they will usually set aside the CCJ.
What happens if I don’t pay a CCJ?
If you have been served with a CCJ, you will be legally obliged to make payments as ordered by the court.
There are a number of things that can happen if you don’t pay:
Take money directly from your wages or benefits
The court has the power to instruct your employer to take money directly from your wages or benefits to repay a debt.
This can sound daunting but there are rules in place to prevent you from being pushed into further financial hardship and you should never be left with less than 60% of your net earnings.
Freeze your bank account
If the court believes you have the funds to pay the CCJ but are choosing not to, they can freeze your bank account.
The money will then be taken from your bank account and sent to the court to be distributed among your creditors. This is to prevent you from spending it on anything other than debt repayment.
Declare you bankrupt
If you owe more than £5,000 and your creditor has repeatedly failed to recover payment of the debt, the court can make you bankrupt. This is usually done as a last resort as your creditor will be required to pay the bankruptcy fees upfront.
This can have a catastrophic impact on your finances and make it difficult to be approved for further credit for several years, making anything from a phone contract to a mortgage impossible.
Secure the debt to your home
The court can secure a debt to your home to put pressure on you to pay it. This works a bit like a mortgage and means that, if you sell or remortgage your home before repaying the debt, any money made will go directly to your creditor to repay the debt.
Once the debt has been secured to your home, your creditor can apply for a further court order to force you to sell your home and take the money made from the sale to repay your debt.
Order bailiffs to collect the debt
One of the first things your creditor is likely to do when you don’t pay a CCJ is send bailiffs to visit you and collect payment of the debt. Depending on the level of debt, this can be County Court or High Court enforcement officers.
They will usually visit you at home (after giving seven days’ notice) and demand payment in full or seize goods that they can sell to repay the debt.
What is a CCJ removal solicitor?
It is entirely possible to get a CCJ removed yourself but navigating the process can be easier with the help of a CCJ removal solicitor who is authorised and regulated by the Solicitors Regulation Authority (SRA) to provide legal services related to CCJ removal.
They will let you know if you have legal grounds to have a CCJ removed, walk you through the CCJ removal process, and in some cases, even represent you in court. However, depending on the complexity of your case, CCJ removal services can cost up to £1,500.
Before trying to get a CCJ removed, consider whether you want to go through the process alone or hire a legal expert to keep you on the right track. Often, a creditor will be more willing to work with a CCJ removal solicitor than negotiate with you directly.
How can I improve my credit score after a CCJ?
Having a CCJ on your credit file can have a detrimental impact on your finances, but there are steps you can take to improve your credit score after it’s been removed. In most cases, your credit score will also improve as your CCJ ages.
Here are some steps you should take to boost your credit score after a CCJ:
Register to vote
When you register to vote, your details will be added to the electoral roll and recorded on your credit report. This can help credit reference agencies confirm your address and rule out identity fraud, boosting your credit score as a result.
Make payments in full and on time
The best way to improve your credit rating after a CCJ is to make all payments in full and on time – especially over the long term. This shows lenders that you’re a responsible borrower who is capable of handling credit responsibly.
Check your credit report for errors
Checking your credit report for errors on a regular basis can help you maintain a good credit score. Even a simple mistake, like a misspelt surname or an old address, could have a disastrous impact on your credit rating.
Limit your credit applications
The months after a CCJ can make or break your credit rating and applications for more credit should be avoided unless absolutely necessary. Making multiple credit applications within a short space of time can also lower your credit score and make lenders less willing to work with you.
Conclusion
County Court Judgments (CCJs) typically stay on your credit report for six years from the date they were issued but you may be able to get it removed sooner under certain circumstances.
For example, if you repay the debt in full within 30 days or can prove that your creditor didn’t follow the right process, the court may agree to remove the CCJ. Once a CCJ has been removed from your credit file, you should find it easier to access credit.
Remember, your credit history will gradually improve as your CCJ ages and there are various things you can do to boost your credit score after the CCJ is removed.
