A county court judgment (CCJ) is a court order that requires an individual or business to pay a debt to a creditor. It is issued by a county court in the United Kingdom when a creditor successfully takes legal action against a debtor who has not paid a debt.
A CCJ will be recorded on an individual’s credit file and can have a significant impact on their credit score and ability to borrow money in the future. If a debtor does not pay a CCJ, the creditor may be able to take further legal action to recover the debt, such as garnishing wages or seizing assets.
It is important for individuals to pay their debts in a timely manner and to seek help if they are unable to do so, as ignoring a CCJ can lead to serious financial consequences.
The danger is where a frivolous claim may be made and subsequently ignored as ‘so outrageous’ but this should claim should be disputed. This dispute will stop the process and the court will have the opportunity to at least hear both sides of the dispute.
What is a County Court Judgment?
A county court judgment is a court order issued by a county court in the United Kingdom that requires an individual or business to pay a debt to a creditor. It is issued when a creditor successfully takes legal action against a debtor who has not paid a debt. A CCJ will be recorded on an individual’s credit file and can have a significant impact on their credit score and ability to borrow money in the future.
If a debtor does not pay a CCJ, the creditor may be able to take further legal action to recover the debt, such as garnishing wages or seizing assets. It is important for individuals to pay their debts in a timely manner and to seek help if they are unable to do so, as ignoring a CCJ can lead to serious financial consequences.
What to do when you receive a CCJ claim form letter
If you receive a county court judgment claim form letter, it means that a creditor is taking legal action against you for a debt that you have not paid. It is important to take this letter seriously and to respond to it promptly, as ignoring it can lead to serious financial consequences.
Here are some steps you can take if you receive a CCJ claim form letter:
- Read the letter carefully and make sure you understand the nature of the debt and the amount being claimed.
- Check the details of the debt to make sure it is correct and that you are responsible for it. If you believe the debt is not yours, or if you believe the amount being claimed is incorrect, you should contact the creditor and try to resolve the matter.
- Consider whether you are able to pay the debt. If you are able to pay the debt in full, you should do so as soon as possible to avoid further legal action.
- If you are unable to pay the debt in full, you may be able to negotiate a payment plan with the creditor. You can also contact a debt advice organization for help with this.
- If you do not respond to the CCJ claim form letter, the creditor may be able to obtain a default judgment against you, which could lead to additional legal action to recover the debt.
It is important to act promptly and seek advice if you are unsure of what to do. Ignoring a CCJ claim form letter can lead to serious financial consequences, so it is important to take action to resolve the matter as soon as possible.
How to respond to the CCJ claim
If you have received a county court judgment claim form, it is important to respond to it promptly and carefully in order to avoid further legal action and potential financial consequences. Here are some steps you can take to respond to the CCJ claim:
- Read the claim form carefully and make sure you understand the nature of the debt and the amount being claimed. Check the details of the debt to ensure that it is correct and that you are responsible for it.
- Consider whether you are able to pay the debt in full. If you are able to pay the debt, you should do so as soon as possible to avoid further legal action.
- If you are unable to pay the debt in full, you may be able to negotiate a payment plan with the creditor. You can also contact a debt advice organization for help with this.
- If you believe that the debt is not yours, or if you believe that the amount being claimed is incorrect, you should contact the creditor and try to resolve the matter. You may need to provide evidence to support your claim.
- If you do not respond to the CCJ claim form, the creditor may be able to obtain a default judgment against you, which could lead to additional legal action to recover the debt.
It is important to act promptly and seek advice if you are unsure of what to do. Ignoring a CCJ claim form can lead to serious financial consequences, so it is important to take action to resolve the matter as soon as possible.
Deadline for replying to a CCJ claim form
The deadline for responding to a county court judgment (CCJ) claim form will depend on the specific details of your case and the rules of the court that issued the claim. It is important to read the claim form carefully and follow any instructions provided on how to respond and by when.
Generally, you will be given a certain amount of time to respond to the CCJ claim form, typically 14 days. This time frame may be extended in certain circumstances, such as if you are seeking legal advice or if you are negotiating a payment plan with the creditor.
If you do not respond to the CCJ claim form within the specified time frame, the creditor may be able to obtain a default judgment against you, which could lead to additional legal action to recover the debt.
It is important to act promptly and seek advice if you are unsure of what to do or if you need more time to respond to the CCJ claim form. Ignoring the claim form or missing the deadline for responding can lead to serious financial consequences, so it is important to take action to resolve the matter as soon as possible.
Receiving the judgment
Once the court has reviewed all the paperwork in a county court judgment case, they can issue one of two types of judgment: a judgment by instalments or a judgment forthwith.
A judgment by instalments allows the debtor to pay off the debt over time, typically through a series of monthly payments. This can be a good option for individuals who are unable to pay the debt in full immediately but are able to make regular payments to eventually pay off the debt.
A judgment forthwith, on the other hand, requires the whole amount of the debt to be paid immediately. This can be a difficult option for individuals who are unable to pay the debt in full, as it may require them to come up with a large sum of money all at once. If the debtor is unable to pay the judgment forthwith, the creditor may be able to take further legal action to recover the debt, such as garnishing wages or seizing assets.
It is important for individuals to consider their financial situation and seek advice before agreeing to a judgment by instalments or a judgment forthwith. Ignoring a CCJ or failing to pay it can lead to serious financial consequences, so it is important to take action to resolve the matter as soon as possible.
If you don’t keep to the terms of a CCJ
If you don’t keep to the repayment terms set out in the CCJ then a creditor can ask the court to enforce the debt.
There are several ways that they can do this:
- bailiff action
- Charging Order
- Attachment of Earnings Order.
Bailiff action
If a creditor has obtained a court judgment against a debtor and the debtor has not paid the debt, the creditor may be able to apply to the court for a bailiff to collect the debt. If the court grants permission, it will issue a Warrant of Control.
A Warrant of Control gives the bailiff the power to visit the debtor’s home or business to collect the money that is owed, or to seize goods that could be sold to repay the debt. The bailiff may be able to take control of goods such as electronics, appliances, or vehicles, and sell them at auction to pay off the debt.
It is important for individuals to be aware of their rights and responsibilities when a bailiff is involved in collecting a debt. It is also important to seek advice if you are facing the possibility of a bailiff visiting your home or business, as ignoring the situation can lead to serious financial consequences.
Charging Order
If you own a property and have not paid a debt that is owed to a creditor, the creditor may be able to ask for a Charging Order to be secured against your property. A Charging Order is a legal claim that is placed on your property, which requires the debt to be repaid when the property is sold or re-mortgaged.
While a Charging Order can be a useful way for a creditor to ensure that a debt is eventually repaid, it can also have significant financial consequences for the debtor. If a Charging Order is placed on your property, it may make it more difficult for you to sell or re-mortgage the property, as the debt will need to be paid off before the sale or re-mortgage can be completed.
As a last resort, a creditor may force a sale of your property to reclaim the money they are owed. However, this is unlikely to happen if the property is your main home and especially if you have dependents living there. It is important to seek advice if you are facing the possibility of a Charging Order being placed on your property, as ignoring the situation can lead to serious financial consequences.
Attachment of Earnings Order
An Attachment of Earnings Order is a legal order that requires an individual’s employer to deduct money from their wages to pay off a debt that is owed to a creditor. The creditor may request an Attachment of Earnings Order if the debtor has failed to pay a debt that has been the subject of a county court judgment and the creditor has been unable to collect the debt through other means, such as a payment plan or the sale of assets.
An Attachment of Earnings Order will specify the amount of money that needs to be deducted from the debtor’s wages and the frequency of the deductions. The employer is required to comply with the order and make the deductions from the debtor’s wages until the debt is paid in full.
It is important for individuals to be aware of their rights and responsibilities when facing an Attachment of Earnings Order. If you are unable to pay the debt and are facing the possibility of an Attachment of Earnings Order, it is important to seek advice and try to negotiate a payment plan or other arrangement with the creditor. Ignoring an Attachment of Earnings Order can lead to serious financial consequences, so it is important to take action to resolve the matter as soon as possible.
How a CCJ affects your credit record
A county court judgment can have a significant impact on an individual’s credit record and credit score. A CCJ is a court order that requires an individual or business to pay a debt to a creditor, and it is issued when a creditor successfully takes legal action against a debtor who has not paid a debt.
When a CCJ is issued, it is recorded on an individual’s credit file, which is a record of their borrowing and repayment history. Credit files are used by lenders and other financial institutions to assess an individual’s creditworthiness and determine whether to lend them money or provide other financial products or services.
Having a CCJ on your credit file can make it more difficult to obtain credit in the future, as it may indicate to lenders that you have had difficulty paying your debts in the past. It may also result in higher interest rates on loans or credit cards, as lenders may view you as a higher risk borrower.
It is important for individuals to pay their debts in a timely manner and to seek help if they are unable to do so, as ignoring a CCJ can lead to serious financial consequences and a negative impact on their credit record.
How to get a CCJ cancelled/ ‘set aside’
It may be possible to have a county court judgment cancelled or ‘set aside’ in certain circumstances. A CCJ is a court order that requires an individual or business to pay a debt to a creditor, and it is issued when a creditor successfully takes legal action against a debtor who has not paid a debt.
If you believe that a CCJ has been issued against you unfairly or in error, you may be able to have it cancelled or set aside. To do this, you will need to provide evidence to the court that supports your claim, such as proof that the debt is not yours or that you have already paid the debt.
It is important to act promptly if you believe a CCJ has been issued unfairly or in error, as ignoring the CCJ can lead to serious financial consequences. It is also advisable to seek legal advice if you are unsure of how to proceed.
If the court agrees to set aside the CCJ, it will be removed from your credit file and will no longer have an impact on your credit score or ability to borrow money in the future. However, if the court denies your request to set aside the CCJ, you may still be required to pay the debt and the CCJ will remain on your credit file.
CCJ relates to an insurance claim against an individual
If a county court judgment relates to an insurance claim against an individual, it may be possible to have the CCJ removed from the individual’s credit file. The CCJ will be recorded on the individual’s credit file by credit reference agencies, which maintain records of an individual’s borrowing and repayment history.
To have a CCJ related to an insurance claim removed from your credit file, you will need to contact the Registry Trust, which maintains the Register of Judgments, Orders, and Fines. You will need to provide an original signed letter on headed paper from the insurers or insurer’s solicitors stating that the judgment relates to an insurance claim, along with:
- the county court name
- case number
- date of judgment
- amount of judgment.
The letter must be posted to:
Registry Trust Ltd
Insurance Cancellation Request
153-157 Cleveland Street
London
W1T 6QW
Or emailed to: [email protected]
The letter can be posted to the Registry Trust at the address provided above, or emailed to the provided email address.
It is important to act promptly if you believe a CCJ related to an insurance claim has been issued unfairly or in error, as ignoring the CCJ can lead to serious financial consequences. It is also advisable to seek legal advice if you are unsure of how to proceed.
If the Registry Trust agrees to remove the CCJ from your credit file, it will no longer have an impact on your credit score or ability to borrow money in the future.
How to get a CCJ marked as ‘satisfied’
To get a County Court Judgment marked as satisfied, you will need to pay the amount of money that was awarded in the judgment. Once you have paid the full amount, you can apply to have the CCJ marked as satisfied by contacting the court that issued the judgment and providing proof of payment.
You can also contact the creditor to request that they acknowledge receipt of payment and ask them to update the information on the CCJ register. It is important to keep a record of the payment and any correspondence with the court and creditor in case there are any disputes or issues in the future. If you are unable to pay the full amount of the CCJ, you may be able to negotiate a payment plan with the creditor or seek advice from a debt charity or financial advisor.
How to avoid receiving a CCJ
There are several steps you can take to avoid receiving a County Court Judgment:
- Keep track of your debts and make sure to pay them on time. This includes credit card payments, loans, and any other debts you may have.
- If you are having trouble making payments, contact your creditor as soon as possible to explain the situation and see if they can offer any assistance or allow you to make alternative arrangements.
- If you are struggling to pay your debts and are unable to make payments, consider seeking advice from a debt charity or financial advisor. They may be able to help you negotiate a payment plan or find a solution to your financial difficulties.
- Avoid taking on more debt than you can afford to pay back. This includes using credit cards or taking out loans that you cannot realistically pay off.
- If you receive a letter from a creditor or court stating that you are being taken to court for a CCJ, it is important to take action as soon as possible. Ignoring the situation will not make it go away, and you may end up with a CCJ on your credit record.
Conclusion
In conclusion, a County Court Judgment is a legal order requiring you to pay a debt. If you receive a CCJ, it is important to take action as soon as possible to avoid further consequences. If you are able to pay the full amount of the CCJ, you can apply to have it marked as satisfied by providing proof of payment to the court and creditor.
If you are unable to pay the full amount, you may be able to negotiate a payment plan with the creditor or seek advice from a debt charity or financial advisor. It is also important to keep track of your debts and make sure to pay them on time in order to avoid receiving a CCJ in the first place.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.