If your creditor has issued a CCJ against you, it’s important that you take action to repay what you owe so you can resolve the problem as soon as possible. CCJs are considered a serious form of legal action and shouldn’t be ignored. This guide will outline how to pay a CCJ so you can know how to proceed.
What is a County Court Judgment (CCJ)?
A County Court Judgment (CCJ) is a type of court order that can be issued against a person or business by the civil court in England, Wales, and Northern Ireland. If the court decides that you owe money, you will receive a CCJ in the post and must repay it as per the court's instructions.
A CCJ is usually a last resort used by creditors when they fail to come to an agreement with you over how to repay the debt, or you don't respond to previous court claims. You will be informed that you have a CCJ when you receive a claim form in the post. You will then have two weeks to respond before the judgment is entered.
The court can ask you to repay a CCJ in one of two ways: in full or in instalments. If you cooperate with the court and supply details of your income and expenditure when asked, they will likely decide on a fair payment plan and set your monthly instalments at a rate you can comfortably afford. This is sometimes called an instalment order. Depending on the amount owed, interest may be added.
Once a CCJ has been issued, it will be reported to credit reference agencies and added to your credit report for six years. This will lower your credit rating and make it difficult to get approved for most forms of credit, including a credit card, mortgage, loan, phone contract, and even a bank account.
Find out if your debts qualify
Check my eligibilityHow to pay a CCJ
When you're served a CCJ, you must decide whether or not you owe the money. We've outlined your options for responding to a CCJ below:
Pay the debt as per the court's terms
If you've received a CCJ for a debt you've accrued, it's important that you pay it back. The judgment will outline whether you should repay the debt in full or in instalments, as well as how you should make payment.
With a CCJ, you pay the original creditor, not the court. Their contact details will be clearly listed on the judgment letter you receive in the post.
Request to change the terms of the judgment
If you don't think you'll be able to repay the CCJ in the way it was issued by the court, you can request to vary the payment terms of the judgment. To do this, you must complete court form N245, which asks for details of your income and expenditure and how much you think you can realistically afford to pay. You'll have to pay a non-refundable court fee of £15 to submit the form, but you can apply for free if your CCJ is listed as a 'judgment after determination'.
Alternatively, you can make a token payment (e.g. £1 a month) to show your creditors that while you can't afford regular payments, you're still willing to settle the debt.
Apply to have the judgment cancelled
If you don't think you should have been issued a CCJ (e.g. you've already paid the debt back or the claim form was sent to an old address), you can apply to have it set aside. To do this, you must complete court form N244.
There is a non-refundable court fee of £313 required to submit the form, and you'll likely need to attend a court hearing to explain why the judgment should be cancelled.
How to pay a CCJ when you don't know who it's from
Discovering you have a CCJ can be daunting, especially if you don't know who it is from or when you got it. However, there are some things you can do to find out who a CCJ is from so you can deal with it appropriately, such as:
Check the public register
All CCJs are added to a public register called the Register of Judgments, Orders and Fines for six years. You can search the register at trustonline.org.uk to find details of the court that issued the judgment, the date it was added, and the total amount to pay. There is a small fee of between £6 and £10 to search the register, depending on the level of information required.
Check your credit report
Your credit report will show any CCJs that may have been issued against you in the last six years. You can access a free copy of your credit report through any of the main credit reference agencies (Experian, Equifax or TransUnion).
The entry on your credit report should include information about the court that issued the judgment, so you can get in touch and request the name of the original creditor.
We’ve helped more than 300,000 people find a solution
As part of the UK Debt Expert Group
Can I get a CCJ removed from my credit report?
While rare, CCJ removal is possible in some situations, such as:
If you pay the full amount within one month
The quickest way to deal with a CCJ and get it removed from your credit report and the public register is to pay the debt in full within one month of receiving the judgment. This will also get it removed from the public register, as if it never existed in the first place.
If you agree to owing the money and you're in a position to pay it in full immediately, it is always recommended to do so. Once the debt has been repaid in full, you must inform the court so the relevant organisations can be contacted and your entry can be updated accordingly. This process usually takes about seven days. It's also wise to use a traceable payment method so you can keep a record in the event you're asked to pay the debt again down the line.
You can apply for a certificate of satisfaction to prove to future lenders, landlords, and employers that the debt has been satisfied. It costs £14 to apply for, but you may be able to get this fee waived if you're on a low income.
If you wait six years for it to be automatically removed
A CCJ will be automatically removed from your credit file and the public register after six years, regardless of whether you pay it or not during this time.
However, it's worth noting that, as long as the CCJ remains unpaid, the original creditor can still take legal action against you. They may do this if they believe you have no intention of paying the judgment.
If you know the CCJ is nearing the six-year mark and your creditor hasn't taken legal action against you yet, it may be worth waiting for it to expire. However, if the CCJ is recent, waiting six years for it to be removed is risky.
What happens if I ignore a CCJ?
Ignoring a CCJ may seem like the best option available to you, especially if you don't think you should have to pay it, but this will almost always make the situation worse in the long run. Regardless of whether you agree to owing the debt or you want to set it cancelled, you must act quickly.
One of the first things a creditor is likely to do is ask the court to send enforcement agents to your home to collect the unpaid CCJ debt. When bailiffs visit you, they can seize your goods to repay the debt and may add extra fees to your outstanding balance.
Another consequence of ignoring a CCJ is an attachment of earnings order, which is another type of court order that instructs your employer to deduct a set amount from your wages each month to gradually repay the debt. Alternatively, they may issue a charging order, which secures the debt against your property and puts you at risk of losing your home if the debt continues to go unpaid.
If you owe over £5000, your creditor may also petition for your bankruptcy. However, because this is such a costly process, it typically only occurs as a last resort.
A CCJ pack will arrive with several forms included. If you need more time to respond, you must fill out and return court form N9 to acknowledge the judgment and extend the timeframe for submitting a full defence from 14 days to 28 days.
“I had an excellent experience working with my debt advisor. From our very first conversation, they made me feel heard and understood - never judged. They took the time to review my full financial situation, clearly explained my options, and helped me create a realistic, step-by-step plan to tackle my debt.”
Jonathan
Conclusion
The court sets out how you should repay a CCJ. In most cases, they will order you to pay in full or in monthly payments.
It's important to deal with a CCJ promptly. Ignoring a CCJ will lead to further court action or bailiff action being brought against you.
If you've received a CCJ and you need professional advice about how to proceed, it's important to reach out for help as soon as possible. When you contact a debt help company, like UK Debt Expert, an advisor will review your circumstances and provide free advice tailored to your situation so you can make a clear plan to move forward.
