A County Court Judgment (CCJ) is a legal ruling issued against you in the UK when you fail to repay a debt. Receiving a CCJ can feel overwhelming, but understanding your options and knowing what to do next can help you navigate the situation more effectively. In this article, we’ll cover the steps you should take if you receive a CCJ, as well as provide advice on how to deal with the consequences and avoid further damage to your financial situation.
Table of Contents
1. Understand What a CCJ Is
Before you take any steps, it’s important to understand exactly What’s a ccj is and how it can affect you. A County Court Judgment is a formal decision made by a county court, typically following legal action by a creditor who believes you owe them money. It may be issued for unpaid bills, loans, or credit card debt, among other financial obligations.
Once a CCJ is issued, it is recorded on the Register of Judgments, Orders, and Fines, which is accessible to lenders, landlords, and others who may perform credit checks. A CCJ can have serious consequences for your credit score, making it harder to get loans, mortgages, or even rent a property. It will remain on your credit file for six years unless you pay it off in full within 30 days.
2. Check the Details of the CCJ
The first thing you should do if you receive a CCJ is carefully check the details. You will typically receive a form from the court that outlines the judgment. Look for the following:
- The amount owed: This includes the debt itself, as well as any additional costs or interest.
- The date of the judgment: This is the date the CCJ was issued.
- The creditor’s details: The company or person who initiated the legal action against you.
Make sure that the information is accurate. If you believe there has been a mistake—for example, if you didn’t receive the claim forms or you already paid the debt—you have the right to contest the CCJ. This is important because if you do not challenge it, the CCJ will remain on your record for six years.
3. Decide Whether to Pay the Debt
Once you’ve verified the details of the CCJ, the next step is to decide how to deal with the debt. There are several options available to you, depending on your financial situation.
Pay the CCJ in Full
If you are able to pay off the full amount within 30 days, the CCJ will be removed from your credit file. This is the best option if you have the financial means to do so, as it ensures the judgment is erased from your record and helps prevent further consequences.
Pay the CCJ Over Time
If you cannot afford to pay the full amount upfront, you may be able to negotiate a repayment plan. This is known as an Installment Order. To set this up, you need to contact the court and the creditor to propose a repayment schedule that works for you. The court may agree to allow you to pay off the debt in smaller, manageable installments, often over a period of several months or years.
Even if you don’t pay the CCJ in full, paying off the debt in installments can show that you are taking responsibility for your finances. It’s also important to note that paying off the debt may not remove the CCJ from your credit record immediately, but it will reflect that the judgment has been satisfied.
Apply for a Set-Aside
If you believe that the CCJ was issued in error or you weren’t aware of the claim (for instance, if you didn’t receive the original court documents), you may be able to apply to have the judgment “set aside.” This means that the court will annul the CCJ, as if it never existed.
To apply for a set-aside, you will need to fill out an application form and provide evidence to support your case. The court will then decide whether to cancel the judgment, and if they agree, it will be removed from your record.
4. What Happens If You Don’t Pay a CCJ?
Ignoring a CCJ is not an option. If you fail to make payment arrangements or fail to pay the debt, there can be serious consequences. These include:
- Enforcement action: The creditor may apply to the court for enforcement action, which could include sending bailiffs to your property to seize goods or applying for an attachment of earnings (where payments are deducted directly from your wages).
- Additional costs: Enforcement actions can come with extra fees, which will add to the amount you owe.
- Impact on your credit: An unpaid CCJ can stay on your credit file for six years, making it difficult to secure loans, mortgages, or even rent a property.
The key is not to ignore the situation. If you cannot afford to pay, or if you feel the amount is incorrect, speak to the court or seek legal advice about what to do next.
5. Consider Seeking Debt Advice
Dealing with a CCJ can be complex, and if you’re unsure about the best course of action, it’s worth seeking professional debt advice. There are many free and impartial services available, including:
- StepChange: Provides free debt advice and can help you with debt management plans.
- Citizens Advice: Offers general advice on dealing with debts and CCJs, and can help you negotiate with creditors.
- National Debtline: Offers free, confidential debt advice over the phone or online.
These services can help you understand your rights, explore options for repayment, and create a strategy for managing your debts.
6. How a CCJ Affects Your Credit Report
A CCJ can significantly impact your credit score and make it harder to get credit in the future. Lenders use your credit report to assess your reliability in repaying borrowed money, and a CCJ will likely lower your score, making it more difficult to secure loans or mortgages.
However, if you manage to pay off the CCJ in full within 30 days, it will be removed from your credit file, meaning the impact on your credit score can be minimal. If you pay after 30 days or make an agreement to pay in installments, the CCJ will still remain on your file for six years, though it will be marked as “satisfied” once you have fully paid the debt.
7. How Long Does a CCJ Last on Your Record?
As mentioned, a CCJ stays on your credit file for six years from the date it was issued, even if you pay it off. After this time, it will automatically be removed from your credit record. However, if you pay the debt within 30 days of the judgment, it will be removed from your record entirely, and this can be a key step in restoring your creditworthiness.
Conclusion
Receiving a County Court Judgment (CCJ) can be a stressful and worrying experience, but it’s important to stay calm and take the right steps to resolve the issue. Whether you pay the debt off in full, set up a repayment plan, or contest the judgment, there are options available to you. By acting quickly and seeking the right advice, you can manage the situation and minimize the impact on your credit file.