Quick Guide to CCJs

The One Advice Quick Guide to CCJ’s – County Court Judgment.

What is a CCJ?

CCJ stands for County Court Judgment. A CCJ is made because a creditor has taken legal action against you at the county court, and the Judge has ruled in their favour of the creditor. This means that you must pay back the debt as agreed by the Judge.

A CCJ is usually one of the last steps in recovering a debt; it is likely that the debtor will have had many calls, letters and even debt collectors to their door before a Court hearing is requested.

Can I Avoid Getting a CCJ?

If there has been a court date set then the only way to avoid going to court is to pay the debt before the hearing. If you pay the debt off within one month of the CCJ being issued then it will not further penalise your credit rating.

Will a CCJ Damage my Credit Rating?

Any CCJ passed and has not been paid within one month, will be entered into the Register of Judgments, Order and Fines. This information will be forward onto the credit reference agencies and it will appear on your credit rating for six years.

Lenders will use your credit rating as a basis on whether or not to accept your application for credit, so it is likely that having a CCJ means that you will be refused credit.

If you are unable to pay back the debt in full at the time but do so at a later date, you should request to the court that they note the judgment as satisfied. This means that although the CCJ will still remain on your credit file, lenders can see that you have repaid the debt which may increase your chances of getting accepted for credit.  

I’ve been Refused Credit, have I Got a CCJ?

There are ways that you can check if you have a CCJ. You can search the Register of Judgments, Orders and Fines (for England and Wales) by person, post or email for a small fee. You could also get in contact with a credit reference agency and ask to see your credit record, there is usually a fee for doing so.

Advantages of a CCJ

• It is up to the courts to decide what is fair between you and your creditors.
• Creditors should not add any further interest and charges to the debt.
• As long as you keep to the agreement, creditors can not use enforcement such as sending bailiffs.

Disadvantages of a CCJ

• A CCJ will make it much harder for you to get accepted for credit.
• If you do not pay back the money then the court can grant further legal actions to your creditors, including sending bailiffs to seize your possessions so that they can be sold to repay the debt. 
• It will remain on your credit file for 6 years.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)