If you have unpaid debt, a creditor (the person or business you owe money to) might issue a County Court Judgment (CCJ) against you.
Having a CCJ in your name can significantly lower your credit score and seriously impact your ability to get credit so it’s important you know what to do and what could happen if you are served with a CCJ.
In this guide, we’ll tell you everything you need to know about CCJ enforcement, from how the CCJ enforcement process works to how you can avoid getting a CCJ in the first place.
What is a CCJ?
In England, Wales and Northern Ireland, a County Court Judgment is a type of court order that can be issued against you if you have repeatedly failed to repay a debt and your creditor has resorted to taking court action to recover money owed.
This, essentially, means your creditor has attempted to recover the debt through alternative means but has been unsuccessful in contacting you or coming to a suitable agreement with you over how it should be repaid.
If you are served with a CCJ, it will be up to your creditor or the court to take your income and expenses into account and decide how and when the debt is repaid.
Why have I received a CCJ?
If you have defaulted on your debt or failed to meet the obligations of a debt repayment plan, your creditor might apply for a CCJ.
If you have received a CCJ, it will be recorded on your credit file and the Register of Judgments, Orders and Fines for a total of six years unless you pay the total balance within one calendar month. During this time, your credit score will decrease and you might find it difficult to get credit, such as a loan, mortgage or credit card.
However, you will always be notified of incoming court action and your creditor must send you a default notice at least 14 days before they can apply to the court to issue you with a CCJ.
How does the CCJ enforcement process work?
The process of enforcing County Court Judgments can differ but there are a few crucial steps that a creditor must follow before they can issue a CCJ against a debtor. This includes:
Default notice
Before a creditor can apply to the court for a CCJ, they must have served you with a default notice warning you that legal action will be taken if the outstanding debt is not paid within a specified timeframe – usually between 14 and 30 days.
If you pay the outstanding debt, including any added interest, within this time, the notice of default won’t be applied and you won’t be issued with a CCJ.
If you ignore a default notice, your creditor will still be free to apply to the court for a CCJ.
Claim form
If the creditor has decided to go ahead with court action, you will receive a claim form in the post.
This will include information on the amount of debt owed and provides space for you to list your income, living costs and, most importantly, how much you can realistically afford to pay every month towards clearing your debt.
The creditor will then decide if they are satisfied with your offer of payment and, if for whatever reason they are not, they will ask the court to make a final decision.
If you ignore a claim form, the CCJ will still go ahead but the court won’t consider your income and living costs when deciding your monthly repayments and this could lead to you paying more than you can comfortably afford.
CCJ enforcement
The next step in the CCJ enforcement process is the court reviewing the paperwork and issuing a CCJ judgment in instalments or forthwith, which means the full amount is due immediately.
If you are worried you won’t be able to afford the monthly repayments you have been asked to pay, you can ask the court to review their decision in what is known as a redetermination.
It is up to you to stick to the terms laid out in your CCJ but, if you repay your debt within one calendar month, you can apply to the court to remove your entry from the Register of Judgments, Orders and Fines. This will also inform credit reference agencies who will remove details of your CCJ from your credit file.
What happens if I ignore a CCJ?
If you disagree with a CCJ being issued in your name or can’t afford to make the monthly repayments, you might be tempted to just ignore it.
However, this is only likely to result in further legal action being taken against you, such as:
Attachment of Earnings Order
When an Attachment of Earnings Order is issued, a proportion of the money owed will be automatically deducted from the debtor’s wages every month until the full amount is repaid.
High Court Enforcement Officers (HCEO)
For debts of £600 or above, an application can be made to enforce the CCJ by issuing a High Court Writ.
This can result in a High Court Enforcement Officer seizing goods the debtor owns that are worth the value of the debt.
County Court Bailiffs
For debts below £600, a creditor might apply for a County Court Bailiff to recover the money owed or seize assets to be used against the total debt amount.
Third Party Debt Order
Finally, creditors can apply for something known as a Third Party Debt Order. Third Party Debt Orders will freeze the debtor’s bank account and send the money owed directly to the creditor.
Does a CCJ affect my credit score?
Having a CCJ on your credit file can significantly lower your credit score and, as a result, lower your chances of being approved for credit.
This means you might struggle to get a loan, mortgage, credit card or even phone contract for six years from the date you were issued with a CCJ.
The only way to have a CCJ removed from your credit report is to repay the full amount within one calendar month or successfully dispute the CCJ by proving it was issued in error.
How can I get a CCJ set aside?
If you believe you have been wrongfully served with a CCJ and don’t owe the money you are being asked to pay, it is possible to get it set aside.
To get a CCJ set aside, fill out a N244 notice and return it to the court that issued the CCJ in the first place.
There is a £275 court fee for applying to get a CCJ set aside (£115 if you and the claimant are making a joint application) but court costs may be revoked or reduced if you’re on a low income or benefits.
If the court agrees with your application, you will need to attend court for a court hearing where your case will be reviewed and your CCJ will be set aside.