A County Court Judgment (CCJ) is a court order that tells you to start making repayments towards a debt that you owe. A creditor might take this action against you to push forward with their efforts to reclaim their money.
You will have just over two weeks to respond to a CCJ. If you do not respond to the order in that time period, you could be asked to repay the debt at an unaffordable rate.
CCJ’s are only used in England and Wales. Northern Ireland and Scotland follow different court processes.
How should I respond to a County Court Judgment?
A creditor must send you evidence of your debt in the post, providing details of that debt. This is called a ‘letter of claim’.
If you receive this letter, you will have 30 days to respond with the reply form that they provide. You must respond to the letter within that 30 day period or a creditor can begin court action against you.
In the reply form, you should:
▪️ Reply to the creditor
▪️ Fill in the financial statement, if you agree that you owe the money, and make a repayment offer if you cannot fully repay the amount
▪️ Inform the creditor that you are seeking help for the debt
▪️ Ask the creditor for more specifics, if required
The idea is for you and your creditor to agree towards some terms. If you can, court action can be avoided.
How does a CCJ affect my credit file?
A CCJ will show on your credit file for six years and it will be an obstacle when it comes to taking out further credit because lenders will see that CCJ.
Having a CCJ on your credit file makes it more difficult to take out more credit. It is important, therefore, to ensure that you can take the route to financial sustainability. That means dealing with your debt as quickly as you possibly can before moving forward.
Your CCJ will also be put onto a database called the Register of Judgments, Orders and Fines. This will also be visible for six years.
Get in touch
Click on our linked page more information on County Court Judgments.
If you need help with anything related to County Court Judgments or business debts in general, call one of our compassionate experts at 0800 088 2142.