If you’ve been issued with a County Court Judgement, also known as a CCJ, the first question you’re likely to have is long long will it last.
How long a CCJ lasts will vary on an individual basis. The duration of a CCJ depends on whether or not it is satisfied (paid) and whether it remains on the Register of Judgments, Orders and Fines.
In this article we’ll examine what county court judgment is, where a CCJ will appear, how long it could last and whether the judgment can be removed.
What is a County Court Judgment (CCJ)?
A County Court Judgment, sometimes known as a County Court Summons, is a type of court order in England, Wales and Northern Ireland.
It may be registered against you if you repeatedly fail to repay any debts you owe.
If you’re served with a CCJ it will be up to the creditor, the person or company you owe money to, and the court will decide how you’ll repay money owed, taking your affordability into account if you’re on a low income.
In Scotland, CCJs are known as decrees, and they are issued by the sheriff court.
A decree can be issued against an individual or business who owes money to a creditor and has failed to pay or come to an agreement with the creditor.
Once a decree is issued, it will remain on the debtor’s credit record for six years, which can affect their ability to obtain credit or loans in the future.
The creditor may also use the decree to enforce payment, such as by obtaining a wage arrestment or bank arrestment.
Will a CCJ appear on a public register?
County court judgments are logged in a public database called the Register of Judgments, Orders and Fines.
Managed by the Registry Trust, you can search the public register for a small fee. It’ll show any registered CCJs, fines, or court orders that have been registered against you.
If a CCJ is registered against you, it will remain on the public register for six years from the date of the judgment, unless it is paid within one month of the judgment date.
Even if a CCJ is paid after it has been recorded on the register, it will still remain on the register for six years from the date of the judgment.
However, the register will show that the judgment has been satisfied.
It is important to note that having a CCJ on your record can have a negative impact on your credit score and may make it more difficult to obtain credit in the future.
Related: How to check if you have a CCJ
Will a County Court Judgment (CCJ) affect your credit rating?
Yes, county court judgments will be recorded on your credit file and have a negative affect on your credit rating.
As lenders and other financial institutions use your credit report to assess your creditworthiness, having a CCJ recorded can make getting further credit, like loans or a mobile phone contract, difficult. Even a bank account can be tricky to open with a CCJ on your credit profile.
It is always a good idea to try to avoid getting a CCJ in the first place, by communicating with your creditors and making arrangements to pay your debts as soon as possible.
If you do have a CCJ on your record, it is still possible to rebuild your credit score over time by making payments on time and managing your finances responsibly in the future.
Can you remove a CCJ from your credit report?
Having a county court judgment on your credit report can seriously harm your ability to secure future credit agreements such as a mortgage or loan.
This is because it shows credit reference agencies that you are a risk having failed to manage previous debt repayments.
However, there are ways to have a remove a CCJ from your credit report.
Pay within a month of the judgment date
If you pay the debt owed within a calendar month of the CCJ, you can apply to the court to have it removed from your credit file and the public register.
To have it removed, you’ll need to apply to the County Court heating centre that issued the judgment for a certificate of cancellation. This is done though a court form titled N443 Application.
You’ll need to cover a £14 court fee, however, if you’re on a low income you’ll be able to get this free of charge.
Once the court has evidence that you’ve paid the full amount within a month, your CCJ will be removed from the register and your credit report.
Set up a payment plan
If you can’t afford to make one payment to clear what you owe, you can set up a CCJ payment plan to repay at an affordable rate.
While the CCJ won’t be removed automatically from your credit report, it will be removed after six years.
When setting up the payment plan it’s important to be realistic about what you can actually afford each month to avoid late payments or missed payments in the future.
To work out how much you’re able to pay, you need to know what disposable income you have – that’s the money left over after you’ve paid essential living costs and priority debts.
If you’re unsure how to work out how much you’re able to repay and are worried about debt, you should seek professional debt help.
Have the CCJ set aside
If you don’t believe that you owe the money, you can apply to have the CCJ set aside by the court.
You can also apply for a judgment to be set aside if you didn’t receive or respond to the original claim from the court saying you owed the money.
Check if you qualify for a Trust Deed and write off up to 70% of your debts!
What happens if you don’t pay a CCJ?
If you don’t pay your CCJ you could face serious consequences – including having money taken from your wages.
Your creditor can also instruct bailiffs to collect CCJ debts.
It’s important to be aware, your lender can:
- Take money from your wages through an attachment of earnings order
- Apply for your bankruptcy of you owe more than £5,000
- Take proceeds of a property sale through a charging order
- Freeze your bank account through a third party debt order
You should also be aware that the court can call you to discuss how you can repay the debt owed at an affordable rate.
If you fail to attend, you could be found in civil contempt and be ordered to pay what’s owed immediately and in some rare instances receive a prison sentence.
Get help with debts and CCJs
If you’re worried about debt or have received a CCJ claim form and are unsure what to do, seek professional help.
Carrington Dean is one of the UK’s largest personal insolvency firms and has experience helping people regain control of their finances.
