If you’ve been issued with a County Court Judgment (CCJ) you may be wondering how long it’ll affect your credit rating and if it can be removed from your credit report if you dispute the judgment.
In this article we’ll discuss what a CCJ is, why you may receive a CCJ as well as whether CCJ removal is a possibility.
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What is a County Court Judgment (CCJ)?
A County Court Judgment, also known as a CCJ, is a type of court order in England and Wales.
A creditor may apply to the county court to have a CCJ registered against you if you’ve failed to repay money owed.
If a CCJ is registered against you, and you don’t pay the full amount owed within a month of the judgment, it will appear on the Register of Judgments, Orders and Fines. This is a public register that can be accessed for a small fee.
However, before a CCJ can be issued, you must receive a claim form by your creditor. It’s important to respond to the claim form within the timeframe given – 30 days – to ensure your repayments remain affordable.
If you’ve received a claim and are unsure what to do next, it’s important to seek professional debt advice.
What happens if you ignore a CCJ?
If you ignore a CCJ, the creditor can take further legal action against you to enforce the judgment and try to recover the debt.
Ignoring a CCJ could lead to:
Enforcement action: The creditor may take enforcement action to recover the debt, which may include:
A visit from the bailiffs: The creditor may instruct bailiffs to visit your property to take possession of goods that can be sold to pay off the debt.
An attachment of earnings order: The creditor may apply to the court to have money deducted from your wages or salary to pay off the debt.
A charging order: The creditor may apply to the court for a charging order against your property, which would allow them to secure the debt against your property.
Increased debt: If enforcement action is taken, you may have to pay additional fees and costs, which can increase the overall debt.
Damage to your credit score: A CCJ can stay on your credit file for up to six years, which can make it harder for you to get credit in the future.
Legal consequences: If you continue to ignore the CCJ, you may face further legal consequences, such as being issued with a warrant for your arrest or being made bankrupt.
As such, it’s important to respond to a CCJ and take action to pay the debt or make arrangements to repay it, as ignoring it can lead to serious consequences. If you are struggling to pay the debt, you should seek advice from a debt advisor or a CCJ removal solicitor.
How long does a CCJ stay on your credit report?
County Court Judgments won’t appear on the Register of Judgments, Orders and Fines if paid within a month of the issue date. As a result, it also won’t appear on your credit file but any defaults that may have led to your CCJ will go on your record.
If you’re unable to repay the CCJ within the calendar month, it’ll appear on your credit report for six years – even if you repay it during this time.
Related: How to check if you have a CCJ
How much does a CCJ affect your credit rating?
Having CCJ on your credit report will negatively affect your credit rating. This is because credit reference agencies will view you as being a risk and the low score on your credit record will act as a warning to future lenders.
Is CCJ removal from a credit report possible?
It may be possible for credit reference agencies to remove a CCJ from your credit report if you can provide proof of payment within a calendar month of the County Court Judgment date.
If you’re unable to pay the full amount within a month of the judgment date, the county court judgement will be automatically removed after six years.
CCJ removal may also be possible if you don’t believe that you were responsible for the debt in the first place. In that instance you’d apply to the court to have the CCJ ‘set aside’.
You should share evidence that the CCJ should be removed with credit reference agencies as soon as possible.
Should you pay the CCJ if you dispute it?
If you don’t believe that you owe the money stated in the CCJ it’s important to dispute it.
When you receive your letter of claim you should also receive a reply form. It’s important to act promptly and complete the form within 30 days of the date on the top of the letter.
How you respond to the letter will depend on whether you believe you’re liable for the debt.
The first section of the form will allow you to say whether you owe the full amount of the debt, some of it, none of it or if you don’t know you owe anything.
If you’re unsure if you owe the money in question or dispute the CCJ, you must tell the creditor:
- if you’re seeking advice and where from
- what you’re getting advice for (eg. whether you owe the debt)
- when you expect to receive the advice
If you dispute the debt, you’ll need to explain why you don’t believe you’re responsible. You’ll need to follow the process below and explain:
- why you don’t accept that you owe the money
- what parts of the claim form you disagree with
- whether you intend to make your own claim against the creditor or not
- if you believe that the creditor is responsible for any part of the dispute
- how you suggest dealing with the issue
You’ll also need to share:
- details of documents you plan to use for your defence
- the documents you’re sending to the creditor or an explanation why you can’t send them
- details of documents you want from the creditor
If you request documents from the creditor, they should send them or explain why they can’t within 30 days.
How do you apply to the court to set aside a default judgment?
If you don’t owe the money you can apply to the court for the cancellation of the county court judgment. This is also known as getting the judgment set aside.
It’s important to be aware that you can do this even if you didn’t receive the original claim from the court.
To have the judgment set aside, you need to complete the application notice N244.
You may need to pay a £275 court fee and attend court to explain why you don’t owe the money. This will be a private court hearing.
Where can I find debt advice?
If you’re struggling with debt and being served a CCJ is a real prospect, it’s important to seek professional advice as soon as possible.
Carrington Dean provides straightforward, reliable advice tailored to your personal circumstances to help you find the best debt solution.
Our debt specialists have already helped more than 45,000 people regain control of their finances and avoid dealing with the courts.
