What is a CCJ?
Summary: This article will explain what a CCJ is, and what to do if one is received.
When an individual owes money, and they are unable to pay, the creditor may apply to the courts for a County Court Judgment (CCJ). A CCJ is legally binding and advises the debtor that they must repay the debt.
What will the CCJ say?
What the CCJ states will depend on the individuals circumstances, however they all will follow a general structure advising of the amount outstanding, how it should be paid (it may advise instalments or in full), when it must be paid by, and who the payments should go to.
What should I do if I receive a CCJ?
The most important action is to respond to the CCJ within the time frame given (usually 14 days). The individual then has a number of options available: Pay the outstanding debt immediately, request an extension to the deadline or request to pay in instalments, dispute the amount owed or the claim in full.
How will a CCJ affect my ability to get credit?
If the debt leading to the CCJ is repaid in full, including any interest and additional costs, within a month of the CCJ being received, then there is no record kept. However, if it is not repaid promptly, it will be recorded on an individual’s credit record for 6 years. When an individual applies for further credit within this time, then it is likely that they will either be refused credit, or not given the most competitive rates as the lender may see them as a higher risk.
Can i just ignore a CCJ?
It is very important that, whether or not the individual believes a CCJ is justified, they respond within the timeframe given. If a CCJ is ignored, then the individual could be taken back to court and be forced to repay the full amount immediately.