If you’re struggling to make ends meet and can’t keep up with paying back what you owe, you may find that your creditors (the companies you owe money to) take you to court to recover their money.
If they do, you could easily find yourself with a County Court Judgment (CCJ) – a court order forcing you to make repayments.
Don’t worry though, it’s possible to have a CCJ ‘discharged’ – effectively removing it from your records and limiting the damage done to your credit report.
In this guide, we’ll explore:
- What a CCJ is
- What it means to have County Court Judgments ‘discharged’
- How you can have a CCJ discharged
- Other options you have to limit the effect CCJs have on your financial life
It’s worth noting that there are strict time limits involved for having a CCJ discharged, so the sooner you act, the more likely you are to be successful.
What exactly is a County Court Judgment (CCJ)?
A CCJ is a kind of court order that’s used in England, Wales, and North Ireland. In Scotland, a court-issued Decree is a similar order.
If you fall behind with payments that you’ve said you’ll make towards a credit agreement or bills, your creditors will usually start chasing you to catch up with those missed payments. If you don’t, they’ll then ask a debt management company to chase you on their behalf.
If neither of these steps works, they have the option to apply to the court for a CCJ. If the application is successful, you’ll be summoned to court and a judge will make a decision about whether you owe the money and – if so – how you need to pay it back.
If you fail to stick the the terms laid out by the court, you can face more serious punishments – including enforcement officers (otherwise known as bailiffs or sheriffs) coming to your home and taking valuable items to sell to put towards the debt.
How can a CCJ affect your life?
If you find yourself with a County Court Judgement, you’ll almost certainly find that some parts of your financial life get harder.
The thing is, shortly after you get one, a CCJ is recorded on your credit file. All credit reference agencies will be made aware of the CCJ – so your credit rating will drop significantly.
This can make it much more difficult to get any kind of credit. We don’t just mean personal loans or mortgages either – even every day things like phone contracts, rent agreements, or paying for insurance monthly.
You may also find it difficult to work in certain jobs if you have a CCJ. Some positions in legal and financial institutions will not be available to people with CCJs – and the same can be said of certain roles within government departments too.
What’s more, if you fall behind with payments towards a CCJ – even by accident or through bad luck – you can quickly find that bailiffs are knocking at your door and significant additional costs are added to what you owe.
In short, if you can avoid a CCJ, it’s a good idea to do so.
How long does a CCJ stay on your credit report?
If it cannot be discharged, a CCJ will stay on your credit report for 6 years from the date of the judgment.
Although your credit rating will usually improve as a CCJ gets older, it will still be a major factor and can rule you out of gaining certain types of credit or holding certain bank accounts for the full 6 years.
Where else is a CCJ recorded?
As you can see from the information above, a CCJ will be registered with each credit reference agency – but it doesn’t stop there.
CCJs are also recorded on a public database called the “Register of Judgments, Orders and Fines”. This public register is available to anyone who requests access – and they’ll be able to see the full details of your CCJ for a small fee.
The information available includes:
- Your name and address
- The amount of money you owe
- The case number
- The court who issued the CCJ against you
Don’t worry too much – it’s not something that most people are aware of or would consider exploring. However, it is routinely used by lenders, letting agencies, and certain employers.
What does it mean if a CCJ is ‘discharged’
If a CCJ is discharged, it effectively means it is no longer required and can therefore be wiped from any records and from your credit file. This can only be done if the amount of money owed is paid in full with one calendar month of the CCJ being issued.
Since it is removed from all official records, the CCJ will no longer impact your chances of getting credit and will not impact your ability to hold the kinds of jobs we’ve mentioned previously.
Having a CCJ discharged
When a CCJ is issued you are given a month from that date to pay it off. The CCJ is still officially issued, but this window gives you a chance to clear it and start the process of having it removed from all your records.
The first part of the process is handled automatically – the court will see to it that it comes off the public register.
However, it’s a little more involved having the CCJ wiped from your credit file altogether. To start with, you’ll need to ask the court for a ‘Certificate of Satisfaction.
To do this, you should download an N443 claim form. You can download this for free from the government website. You should keep a record when you repay money owed (a receipt or bank account statement) – as the court will need to see this too.
When both these things are sent away, the discharged debt should be removed from your credit report. There can sometimes be delays though – so it’s worth getting in touch with each credit reference agency to make sure they’ve updated your details.
What if you can’t have your CCJ discharged?
Don’t panic if you’re not in a position to have your CCJ discharged. There are millions of active CCJs registered against individuals and companies in the UK – so you definitely won’t be alone if you can’t have your CCJ removed.
As long as you continue to pay towards what you owe, there should be no reason that the court will approve any further action against you. If you can pay more off than requested, you might even get your CCJ wrapped up earlier than planned.
At this stage, it’s worth mentioning that ignoring a CCJ isn’t a good idea. Some debts are governed by a ‘statute of limitations‘ in the UK – meaning that if they are not paid or acknowledged within a certain time frame (often 6 years) then they can no longer be enforced. However, this is not the case with any debt that you’ve had a CCJ issued against. There is no time limit relating to the collection of CCJ-related debt, so you could be pursued indefinitely for the money you owe – as well as having to deal with bailiffs.
Can’t afford to pay towards your CCJ?
When you’re asked to appear in court, the judge will want to hear from you about how much you can realistically repay each week or month to work towards clearing your debt. They will try to make this affordable – but lots of people choose not to appear in court, which can sometimes mean a high repayment amount is set with no chance of talking about what’s affordable.
With this in mind, it’s better to try to go to your court hearing – but if you’ve found yourself with a CCJ debt that you just can’t deal with, it’s a good idea to seek some free debt advice.
When you do, the people you talk to may speak about debt solutions. A debt solution is a government-approved way of dealing with debts that you can’t realistically afford to pay off in a reasonable amount of time.
As well as stopping any legal action that may be taken against you for not paying towards your CCJ – a company that helps with debt solutions will take over talking to all your creditors too, meaning they will speak to the court on your behalf and try to arrange an affordable payment plan that satisfies everyone you owe.
A debt solution isn’t right for everyone – but if you can’t pay the full amount of your CCJ quickly or can’t imagine being able to pay it off over the longer term, it could be a good way to deal with what you owe and focus on rebuilding your financial life going forward.
