What Happens if You Get a County Court Judgement (CCJ)?

A County Court Judgment is a type of debt collection action that creditors can take to recover unpaid debts. If you’ve received a CCJ, you must never ignore it. Understanding what this means and the options available in your situation can help you take back control, which is why we’re offering this complete guide to dealing with a CCJ including everything from what it is to the impact it can have on you.

What is a CCJ?

A County Court Judgement – or CCJ – is a court order telling you to pay your debts. This could be from a variety of different debt types, including unpaid loan payments and store cards. A creditor will start the process when you’ve missed payments agreed upon within a credit agreement. This starts with them sending a letter of claim giving details of the debt, which you have 30 days to respond to. This is your first opportunity to respond and come up with a plan for repaying the debt. If you don’t respond to this, they will send the county court claim forms for your CCJ.

One of the best ways to avoid receiving a CCJ is to speak to a debt advisor before the creditor sends a letter of claim. They can advise you on any suitable debt solutions and help you get started on clearing your debts.

What should you do if you get a CCJ?

If you receive a CCJ, it’s unlikely to come out of the blue since you’ll have also received a letter of claim before this arrives. The good news is that you have a few options for your next steps.

Firstly, you’ll need to fill in the CCJ form, including the Income and Expenditure forms, either by post or online. Once you receive a claim form, you will have roughly two weeks to respond with a grace period afterwards allowing for it to arrive in the post.

You can then choose whether to file a defence if you disagree with the amount owed or admit the claim if you agree.

You’ll also need to fill in a form detailing your financial circumstances, and this is where you have the option to make an offer of payment towards the debt. This offer should be realistic, and you should make sure it wouldn’t cause any further financial issues for you.

Another option you have is submitting an acknowledgement of service if you intend to defend the claim but need more than 14 days to prepare your defence.

If you accept the CCJ, you’ll attend a hearing, after which the repayment terms will be set. For most people, the debt will be paid back in monthly instalments which take your financial situation into account. If the payments become difficult to keep up with, you can apply to have them adjusted. Some may have the option of paying off the debt in a lump sum which can clear the CCJ quicker.

How long does a CCJ stay on your credit file?

A County Court Judgement or High Court Judgement will stay on your credit file for six years. This can affect your eligibility for loans and credit cards.

If you pay the debt within one month, you can apply to have the judgment removed from the register. If you pay after one month, the record will be marked as ‘satisfied’ although it will stay on the register for six years.

What happens if you don’t respond to a CCJ?

If you ignore the CCJ letter or notice, the court will still issue the judgment, but they won’t be able to consider your circumstances. This could mean that they order you to pay the debt back at an unmanageable rate for you.

The best course of action is always to respond within the recommended time frame since this gives you the best chance of resolving your debts in a way that’s within your means and won’t lead to further financial issues.

Can you get a CCJ without going to court?

Creditors will use an Order to Obtain Information to find out more about your circumstances and help them work out a suitable plan for repaying your debts. You’ll usually be given a court hearing date in at least 14 days.

Failure to attend this hearing will result in the court issuing another date, and if the second hearing is missed, this can result in your arrest and being taken to court. The best option is to attend the hearing and provide all the information they need. This way, your financial situation will be considered, and you’ll be more likely to be offered a manageable instalment plan for repaying the debt.

What happens after a CCJ is resolved?

To resolve your CCJ, you will need to provide the court with proof of payments totalling the amount owed to your creditor. After this, you will no longer owe the creditor, and they should stop contacting you. The length of time the CCJ will stay on your credit file will depend on whether you paid in under or over a month.

Worried about debts? These resources may help:

MoneyHelper 

For more information on what a County Court Judgment is and what your options are, you can check out MoneyHelper’s self-help resource.

StepChange

For free, impartial advice and guidance on anything related to your CCJ, StepChange can support you.

National Support Network

The National Support Network is dedicated to providing tailored, well-signposted support depending on your circumstances. Whether you need debt help or financial advice, the NSN can point you in the right direction for resources, helplines and anything else that could be useful.

UK Debt Service is a proud member of the NSN, and we work with them to ensure our customers can access the debt and financial support and advice they need. To learn more about our partnership with the NSN and access our support hub, head to our page on signposting.

Receiving a CCJ and working out what to do can feel daunting, but we hope this guide has helped you understand the implications and everything you need to consider. The important thing to remember is that by remaining involved in the CCJ, you can gain back control over your debt and see this as simply a route to repaying it. 

If you’re struggling with debt, speaking with one of our advisors at UK Debt Service may help you get control of your finances.