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What is a County Court Judgment?
A County Court Judgment (CCJ) is a court order, issued by a county court, which states that you must pay back money owed to a creditor.
It can include interest and court costs if the court decides it is appropriate, but this will depend on the circumstances of your case.
CCJs are legally binding and if you don’t comply with the terms of the order, further action can be taken against you.
This could include having your wages or benefits garnished, or having goods seized and sold to pay off the debt.
It’s important to take action if you receive a CCJ and to seek advice if necessary.
The Process of Obtaining a CCJ
The process of obtaining a County Court Judgment (CCJ) is initiated when a person or organisation is owed money and has been unable to recover it from the debtor.
This process is a legal recourse that can be used to enforce the payment of a debt.
Here’s a more detailed look at the steps involved:
Issuing a Letter Before Action
Before taking legal action, the creditor should send a Letter Before Action (LBA) to the debtor.
This letter outlines the details of the debt, including the amount owed and the original agreement.
It also provides a deadline (usually 14 days) for the debtor to respond or pay the debt.
Filing a Claim
If the debtor does not respond to the LBA or disputes the debt, the creditor can initiate legal proceedings by filing a claim form in the County Court.
This claim form outlines the details of the debt and the basis of the claim.
Response from the Debtor
Upon receiving the claim form, the debtor has 14 days to respond. They can admit they owe the debt and pay in full, admit they owe the debt and propose a payment plan, dispute the debt in part or in full, or ignore the claim.
Judgment
If the debtor does not respond or disputes the claim and the court rules in favour of the creditor, a CCJ is issued.
This judgment sets out how much money is owed, how it should be paid (in full or in instalments), and the deadline for payment. If the debtor admits the debt, the court will issue a judgment for the admitted amount.
Registration of the CCJ
Once issued, the CCJ is recorded on the Register of Judgments, Orders and Fines. It will stay there for six years unless the debt is paid in full within one month of the judgment.
Enforcement
If the debtor fails to comply with the terms of the CCJ, the creditor can take steps to enforce the judgment.
This can include applying for a warrant of control to seize and sell the debtor’s goods, an attachment of earnings order, or a charging order against the debtor’s property.
It’s important to note that obtaining a CCJ is a serious step and can have significant implications for the debtor, including affecting their credit rating and potentially leading to enforcement action.
Therefore, it’s usually considered a last resort after all other attempts to recover the debt have failed.
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How Does a CCJ Impact the Debtor?
A County Court Judgment (CCJ) can have significant implications for a debtor, affecting various aspects of their financial and personal life. Here’s a more detailed look at the potential impacts:
Credit Rating
One of the most immediate and noticeable impacts of a CCJ is on the debtor’s credit rating.
A CCJ is recorded on the debtor’s credit file for six years, making it more difficult for them to secure credit during this period.
This can affect their ability to get a mortgage, take out a loan, or even open a bank account. Some employers also check credit records, which means a CCJ could potentially impact job prospects.
Enforcement Actions
If a debtor fails to meet the terms set out in the CCJ, the creditor can take enforcement action.
This can include seizing and selling the debtor’s goods, deducting money directly from their wages, or placing a charge on their property.
These actions can cause significant disruption and stress.
Legal Costs
If a CCJ is issued, the debtor will usually be required to pay the legal costs of the creditor, in addition to the original debt.
This can significantly increase the amount they owe.
Public Record
CCJs are public records. This means that the details of the judgment are available to anyone who chooses to search the Register of Judgments, Orders and Fines.
This can lead to a loss of privacy and potential embarrassment.
Bankruptcy
In extreme cases, if the debt is large and the debtor is unable to pay, they may be declared bankrupt.
Bankruptcy has serious consequences, including the loss of assets and restrictions on financial and professional activities.
Mental and Emotional Stress
The process of dealing with a CCJ and its consequences can cause significant mental and emotional stress. This can impact the debtor’s overall wellbeing and quality of life.
Methods of CCJ Enforcement: From Writs to Bailiffs
If a debtor fails to pay a debt as ordered by a County Court Judgment (CCJ), the creditor has several methods of enforcement at their disposal.
These methods are designed to ensure the debtor fulfils their obligation to repay the debt. Here’s a more detailed look at these methods:
Writ of Control
A writ of control is an order issued by the High Court that allows High Court Enforcement Officers (HCEOs) to take control of a debtor’s goods and sell them to repay the debt.
This method is often used for larger debts and can be a very effective way of enforcing a CCJ.
The HCEOs can seize goods such as vehicles, jewellery, and other valuable items, but they cannot take essential household items or goods necessary for the debtor’s work.
Attachment of Earnings Order
An attachment of earnings order is a method of enforcement that involves the debtor’s employer.
The court orders the employer to make deductions from the debtor’s earnings, which are then sent to the court and passed on to the creditor.
This method is useful if the debtor has a regular income but has failed to pay the debt.
Charging Order
A charging order secures the debt against the debtor’s property, such as their house or land.
If the debtor fails to repay the debt, the property can be sold to repay the creditor.
This method is typically used for larger debts and when other methods of enforcement have failed or are unlikely to be successful.
Third Party Debt Order
A third party debt order allows a creditor to recover the debt directly from a third party who owes money to the debtor.
This is often a bank or building society where the debtor holds an account.
Bailiffs
If a warrant of control has been issued, bailiffs (also known as enforcement agents) have the right to visit the debtor’s property to take control of goods.
They can sell these goods at auction to raise funds to repay the debt.
Each of these methods has its own procedures and regulations, and some may be more suitable than others depending on the debtor’s circumstances.
It’s also worth noting that there are fees associated with each method, which are usually added to the debt and recovered from the debtor.
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The Role of High Court Enforcement Officers in CCJ Enforcement
High Court Enforcement Officers (HCEOs) play a crucial role in the enforcement of County Court Judgments (CCJs) in England and Wales.
They are responsible for enforcing judgments of the High Court, as well as CCJs that have been transferred up from the County Court to the High Court for enforcement.
When a CCJ is issued and the debtor fails to pay the amount owed within the time specified by the court, the creditor has the option to use enforcement measures to recover the debt.
One of these measures involves transferring the CCJ to the High Court for enforcement by an HCEO.
Once a CCJ has been transferred to the High Court, the HCEO has the authority to take control of and sell the debtor’s goods to recover the amount owed, plus any additional costs and interest. This process is known as ‘taking control of goods’ and is governed by strict rules set out in the Taking Control of Goods Regulations 2013.
HCEOs have more extensive powers than County Court bailiffs. For instance, they can enter commercial premises to take control of goods even if the debtor is not present.
They can also enter residential properties with the debtor’s permission or if they can gain peaceful entry, such as through an unlocked door.
They can also force entry into a residential property if they are enforcing a debt that is due under a CCJ and the debtor has failed to comply with the terms of a controlled goods agreement.
In addition to taking control of goods, HCEOs can also enforce certain types of possession orders, such as those requiring a person to leave a property.
Time Limit for CCJ Enforcement: How Long Do You Have?
In England and Wales, the enforcement of a County Court Judgment (CCJ) is subject to certain time limits.
The general rule is that a creditor has six years from the date of the judgment to enforce it.
This six-year period applies to most methods of enforcement, including:
- Bailiffs
- High Court Enforcement Officers (HCEOs),
- Charging orders, attachment of earnings orders,
- Third party debt orders.
If the six-year period has passed, it’s not impossible to enforce a CCJ, but it does become more complicated.
The creditor would need to obtain permission from the court to enforce the judgment.
This is typically granted if the creditor can provide a good reason for the delay in enforcement.
It’s important to note that the six-year time limit does not apply to the judgment debt itself.
A CCJ remains on the Register of Judgments, Orders and Fines for six years, but the debt does not become ‘statute barred’ after this time.
This means that even after six years, the debtor is still legally obligated to pay the debt.
In terms of the time limit for applying for a CCJ, a creditor has six years from the date when the debt became due to take legal action against the debtor.
If the creditor does not take action within this time, the debt becomes ‘statute barred’ and the creditor may lose the right to take legal action to recover the debt.
What Happens if a CCJ is Ignored?
Ignoring a County Court Judgment (CCJ) can have serious consequences. A CCJ is a court order that instructs a person or business to repay a debt.
If a CCJ is ignored, the court can take further action to ensure the debt is paid.
Stopping CCJ Enforcement: Your Rights and Options
If you’re facing CCJ enforcement, it’s important to know your rights and options.
You may be able to negotiate a payment plan with the creditor, apply to the court to vary the judgment, or even have it set aside in certain circumstances.
Varying a CCJ: How and When Can It Be Done?
A CCJ can be varied if the debtor’s circumstances change and they can no longer afford the original payment terms.
To vary a CCJ, the debtor must apply to the court, providing evidence of their changed circumstances.
CCJ Enforcement Costs: What to Expect
Enforcing a CCJ can involve various costs. These may include court fees for issuing the warrant of control or other enforcement action, and fees for the HCEOs.
However, these costs can usually be recovered from the debtor.
