How to Deal with a CCJ: Quick Steps to Tackle County Court Judgments

Facing a County Court Judgment (CCJ) can be stressful, but there are steps you can take to manage the situation effectively. You have several options to deal with a CCJ, including paying it in full, setting up a payment plan, or applying to have it set aside if you believe it was issued unfairly.

If you’ve received a CCJ, it’s crucial to act quickly. Ignoring it won’t make it go away and could lead to further legal action. The first thing you should do is carefully review the details of the judgment to ensure all the information is correct.

Remember, a CCJ can negatively impact your credit score for up to six years. However, by taking prompt action, you can minimise its effects and work towards resolving the issue. With the right approach, you can navigate this challenging situation and get back on track financially.

Understanding CCJs
County Court Judgments (CCJs) are legal orders issued when someone owes money and hasn’t paid. They can have serious consequences for your credit rating and financial future.

What Is a CCJ?
A CCJ is a type of court order registered against you when you fail to repay a debt. It’s issued by a county court after a creditor proves you owe them money. CCJs are public records that stay on your credit file for six years, making it harder to get loans, mortgages, or even mobile phone contracts.

CCJs can be for any amount of money, from small debts of a few hundred pounds to larger sums of thousands. They’re used for various types of unpaid debts, including:

• Credit card balances
• Personal loans
• Utility bills
• Rent arrears

The Process of Receiving a CCJ
The CCJ process typically follows these steps:

• Your creditor sends you a warning letter about the unpaid debt.
• If you don’t respond, they apply to the court for a CCJ.
• The court sends you a claim form outlining the debt details.
• You have 14 days to respond to the claim.
• If you don’t respond or can’t defend the claim, the court issues a CCJ.

Once a CCJ is issued, you’ll receive an order to pay. This will state how much you owe and the payment terms. You can either pay in full or request a payment plan. If you ignore the CCJ, your creditor can take further action, such as:

• Sending bailiffs to your home
• Applying for an attachment of earnings order
• Placing a charging order on your property

It’s crucial to act quickly if you receive a CCJ claim form. Seeking advice from a debt charity or solicitor can help you understand your options and potentially avoid a CCJ being registered against you.

Immediate Steps After Receiving a CCJ
If you’ve received a County Court Judgment (CCJ), it’s crucial to act quickly. Reviewing the details and assessing your finances are key steps to take right away.

Review the CCJ carefully
Check all the information on the CCJ for accuracy. Look at the amount owed, your personal details, and the creditor’s information. If you spot any errors, you can apply to have the CCJ set aside or amended.

Contact the court that issued the CCJ if you need clarification on any points. They can explain the terms and help you understand your options.

Keep all documents related to the CCJ in a safe place. You might need them for future reference or if you decide to challenge the judgment.

Assess Your Financial Situation
Take a close look at your income and expenses. Create a budget to see how much you can realistically afford to pay towards the CCJ.

List all your debts, including the CCJ, and prioritise them. Essential expenses like rent, utilities, and food should come first.

Consider seeking free debt advice from organisations like Citizens Advice or StepChange. They can help you understand your options and create a plan to manage your debts.

If you can’t pay the full amount immediately, contact the creditor to discuss payment options. They might agree to a payment plan that suits your circumstances.

Options for Dealing With a CCJ
When faced with a County Court Judgment (CCJ), you have several paths to consider. Each option carries different implications for your financial situation and credit record.

Paying the CCJ
Settling the CCJ in full is often the quickest way to resolve the issue. If you pay within one month of the judgment date, you can apply to have the CCJ removed from the register. This means it won’t appear on your credit file.

To pay, contact the court or the claimant directly. Make sure to get a receipt for your payment. Once paid, you’ll need to fill out a ‘Certificate of Satisfaction’ form. Submit this to the court with the required fee.

If you pay after the one-month mark, the CCJ will stay on your credit file for six years. However, it will be marked as ‘satisfied’, which looks better to potential lenders.

Setting Up a Repayment Plan
If you can’t pay the full amount at once, you might set up a repayment plan. This involves paying the debt in instalments over time.

Contact the claimant to discuss your options. They may agree to a payment schedule that fits your budget. If you reach an agreement, get it in writing.

You can also ask the court to decide on a repayment plan. Fill out an N245 form to request an ‘Order to pay by instalments’. The court will consider your income and expenses before making a decision.

Remember, a repayment plan doesn’t remove the CCJ from your credit file. It will still appear for six years, but will be updated as ‘satisfied’ once you’ve paid in full.

Applying for a ‘Set Aside’
In some cases, you might be able to apply for a ‘set aside’. This asks the court to cancel the CCJ.

You can apply for a set aside if:

• You didn’t receive the claim form
• You responded to the claim, but the court didn’t receive it
• You have a good reason for not responding to the claim

To apply, fill out an N244 form and send it to the court. You’ll need to pay a fee and may need to attend a hearing.

If successful, the CCJ will be removed from your credit file. However, the claimant can still pursue the debt through other means.

Long-Term Implications of a CCJ
A County Court Judgment (CCJ) can have far-reaching consequences on your financial life. It affects your credit rating and remains on your record for an extended period, potentially impacting various aspects of your financial future.

Impact on Credit Rating
A CCJ significantly damages your credit score. Lenders view it as a red flag, indicating you’ve had trouble repaying debts. This makes it harder to secure loans, credit cards, or mortgages. You may face higher interest rates or be denied credit altogether.

Some landlords and employers check credit reports. A CCJ could make it difficult to rent a property or even affect job prospects in finance-related roles.

To minimise the impact, try to pay off the CCJ within one month. If you do, you can apply for a ‘certificate of cancellation’ to remove it from your credit file.

Duration of a CCJ on Your Record
A CCJ stays on your credit file for six years from the date of judgment. This applies even if you pay off the debt earlier. During this time, it will be visible to anyone who checks your credit report.

After six years, the CCJ is automatically removed from your record. You don’t need to take any action for this to happen.

If you believe the CCJ was issued in error, you can apply to have it ‘set aside’. This process involves explaining to the court why you think the judgment shouldn’t have been made. If successful, the CCJ will be removed from your record.

Getting Help and Advice
Seeking guidance can make a significant difference when dealing with a CCJ. Professional support is available to help you navigate your options and find the best solution.

Free Debt Advice Organisations
Several UK charities offer free, impartial debt advice. Citizens Advice provides guidance on managing CCJs and other financial issues. Their advisers can help you understand your rights and explore potential solutions. Step Change is another valuable resource, offering personalised debt advice and budgeting support.

National Debtline provides free phone consultations and online tools to help you tackle CCJs. They can assist in creating a debt management plan and explaining court procedures. Money Advice Service, now part of MoneyHelper, offers free guides and a debt advice locator tool to find local support.

Legal Assistance
For complex CCJ cases, legal advice may be necessary. Many solicitors offer free initial consultations to assess your situation. Legal aid might be available if you meet certain criteria, helping cover legal costs.

Law centres in many UK cities provide free legal advice on debt matters, including CCJs. These centres often specialise in helping those who can’t afford private legal fees. Some trade unions also offer legal support to their members facing CCJs.

If you’re considering court action, the court’s own staff can provide information on procedures, though they can’t give legal advice. For those representing themselves, personal support units in some courts offer practical help with paperwork and court processes.