What is a CCJ?

When a debtor does not repay their outstanding debt on time or does not respond to notices from the creditor, they may approach a county court for legal action against the debtor. The court may give a Judgement ordering debtor to pay the money back to the creditor. The judgement may also include terms of payment, i.e. how the payment is to be made - in lump sum or in fixed timely instalments. Thus, a County Court Judgement (CCJ) is a court order registered against the debtor when the creditor has taken court action against them for failing to repay the debt. Once a CCJ has been issued, it is recorded on a public register called The Register of Judgements, Orders and Fines maintained by Registry Trust. This information is then passed on to credit reference agencies, who record this information on the debtor's credit file. A CCJ on anybody's credit file can hurt their ability to get credit in future because lenders use credit files to decide whether or not to lend credit. 

 

The creditor must try to agree with the debtor before initiating any court action, and this is called the pre-action protocol for debt claims. The creditor will have to give a letter of claim form, giving the debtor several options to get to an agreement. If they cannot get to an agreement or the debtor does not reply to the letter of claim within 30 days, then the creditor can issue a default notice before lodging a CCJ claim. 

 

A CCJ claim letter is usually to be responded to in 14 days, but a debtor should not take it lightly when received. One should reply to it timely, giving all the requisite information. If the debtor does not keep to the terms set out in CCJ, the creditor can ask the court to enforce the debt through bailiff action. If the court grants permission, it will issue a warrant of control. Seek an order that gives the bailiff the power to visit the debtor's home or business to collect money he owes or seize goods that could be sold to repay the debt. Seek attachment of Earnings Order which makes it obligatory for the debtor's employer to deduct the money owed from his wages. 

 

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