Understanding Country Court Justice (CCJ)

A County Court Judgement (CCJ) can be issued against a borrower’s name if they fail to repay a debt. They’re used by creditors to reclaim money owed to them, and they’re only available in England, Wales, and Northern Ireland– Scotland uses a tactic known as “enforcing a debt by diligence.”

If a person is unable to make timely payments on debts owed to them, or if they have not reached an agreement with their creditors to make up the missed payments, a County Court Judgement may be issued. A Consumer Credit Act CCJ for credit agreements must be preceded by a warning letter, such as a default notice or a letter before action, sent at least 14 days before any action is taken. The letter usually outlines what the borrower may do to resolve the issue, as well as what could happen if he or she does not.

What I can do if I am Assigned County Court Judgement (CCJ)?

The warning letter should tell you what you can do to fix the problem and what will happen if you don’t. When a warning letter is sent, the recipient usually has two weeks to respond; during this time, it may be beneficial to obtain financial guidance to determine the best course of action.

During the two weeks, you should also try to strike an agreement with your creditors; if you disregard the warning, the CCJ will still be issued, but the court will not have heard your side.

You usually have two weeks to respond after receiving a judgement, during which time you can either contest the ruling or admit the claim. If you are fighting the claim, you should seek the advice of a financial expert, whereas if you accept the claim, you should fill out a N9A admittance form with details of your income and expenses, as well as an offer to repay the debt through debt collection process.

If the offer is accepted, the court should issue a judgement specifying the payback rate. If the offer is turned down, the court will issue a judgement stating how much you must pay and at what rate you must pay.

If you cannot reasonably anticipate to be able to pay the amount mentioned in the judgement, you might ask for a redetermination. The court will re-evaluate your case before making a decision. To obtain a re-determination, you must send a letter to the County Court explaining why you are unable to make the payments, as well as financial documentation.

While receiving a CCJ can be worrisome, responding quickly to the claim form can help you avoid getting into trouble.

What happen if the borrower unable to fulfill the CCJ Agreement?

If the borrower refuses or is unable to comply with the provisions of the CCJ agreement, the creditor may ask the court to take the following steps:

  • Warrant of Execution – A creditor can ask the court to send for bailiffs eviction to collect the money owing or any goods that could be auctioned to cover the debt. To allow this to happen, the court will issue a Warrant of Execution; but, you can ask the court to suspend the Warrant and allow you to repay the debt at a pace that you can afford.
  • Attachment of Earnings – An Attachment of Earnings Order allows the creditor to have the money owing to them deducted straight from your wages.
  • Charging Order – The debt may be secured against your property, which means that if you miss too many payments, the property may be seized to cover the obligation.

What Impact Will This Have on My Credit Report?

If a CCJ is not paid in full within 30 days of obtaining it, it can stay on a person’s credit report for six years.A CCJ on behalf of collection agency may have impact of debt and credit score on your record this might act as an indicator of poor previous financial behavior, since lenders may look at past performance when evaluating future credit or loan applications. The CCJ will be marked as satisfied if the borrower repays the money within the six-year period.

How to avoid County Court Judgement (CCJ)?

Making complete and timely monthly repayments on owed money is the greatest approach to prevent acquiring a CCJ. This type of credit history might show lenders that you are financially responsible, which could help you increase your credit score.

You may check your credit history by using Equifax Credit Report & Score, which is free for the first 30 days and then £7.95 per month. If you come into financial issues, you can seek assistance from organisations like the IVAonline or the National Debtline as these give you right way of the citizen IVA advice for your debt. 

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