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County Court Judgments (CCJ’s):
County Court Judgments (CCJ’s)
A County Court Judgment (CCJ) occurs when someone you owe money to (a 'creditor') takes action against you in the County Court, to claim their money back.If you pay the amount outstanding, you can avoid a County Court Judgment (CCJ):
If you are unable to pay, there will be a court hearing. At the hearing, the court decides how the debt should be repaid.
If someone has issued a claim against you through a County Court, it's important to act quickly as you only have 14 days from receiving the claim to reply. If you don't respond, or leave it too late, a judgment could be made against you in you absence, which could make it difficult for you to get credit in the future.
County Court Judgment (CCJ) process:
Once a creditor makes a claim at the County Court, the court will send you a 'Claim Form', showing how much the creditor says you owe them and the details of the claim. An Admission form is also sent to you by the court which asks about your income and outgoings. On the Admission form you can make an offer to repay the debt (or a lower amount if you think you owe less than the creditor claims). Be aware that if you do not make an offer and the court decides against you, the court will decide how much you need to repay and the form of which this repayment should take, i.e. a lump sum or monthly installments.
Once you receive a County Court Claim form you have 3 options; Pay the debt in full, dispute the amount of the claim or defend the claim in its entirety.
If you decide to pay the debt in full, you must send the payment directly to the claimant; the address is shown on the claim form. The costs of the court fess and any interest must also be included in your payment. This will also be confirmed on the Claim form. You must ensure that the claimant receives payment with 14 days. It is good practice to ask for a receipt.
If you cannot afford to repay the money as a lump sum, you will need to state on the admission form how you can realistically repay the debt. The admission form must be sent directly to the claimant, the address is on the claim form. You must ensure the claimant receives the form within 14 days.
If you do not agree with the amount claimed, but acknowledge that you owe the creditor something, this is known as 'making a part admission'. You should return the 'Admission Forms' to the issuing court stating how much you believe you owe, together with payment for this amount or an installment plan to repay the debt by a certain date.
You must ensure the court receives the forms within 14 days
If you want to defend against the claim you should return the 'Defence Form' back to the issuing court answering all the allegations in the particulars of claim make sure the court receives the form within 14 days
If the court finds in favour of your creditor, the court may issue an order saying you must repay the debt. This order is called a County Court Judgment -CCJ and will either be for the amount agreed between you and your creditor or, if you can't agree, a payment set by the court.
If you have County Court judgments (CCJs) from more than one creditor, the court can combine your debts and make an 'administration order’ which means that you must make a single payment every month to be shared by all your creditors.
What happens after a County Court Judgment is made?
After a county Court Judgment (CCJ) is made, it will be entered onto the Register of Judgments, Orders and Fines. Your name will remain on the Register for six years unless you pay the total amount owed within one month of the judgment date. Banks, building societies and credit companies search the Register. A County Court Judgment (CCJ) could affect you if you apply for credit or a mortgage.
If you do not pay the County Court Judgment or do not keep up with the payments, the creditor can ask the court to take steps to make you pay, in which case you may have to pay more costs. If you genuinely can't pay, be proactive; you can ask the court to change the amount of the regular payments or even suspend the order until you can afford to.
If you want to contest a County Court Judgment CCJ you can ask the court to 'set it aside. This means that the County Court Judgement CCJ will not be applied straight away. You may have to pay a fee for this. If your reason for contesting the CCJ is not valid, your application for having the County Court Judgment CCJ set aside could be treated as wasting court time or even perjury; serious offences that can incur fines and even prison.
If the judgment is set aside, the whole claim starts again.
Where to get further advice?
Many organisations offer free, independent advice on debt problems, and we would recommend that you speak to these companies before speaking to others who may charge you for their advice.
We recommend the following organisations who will give you free help and advice:
Citizens Advice Bureau (CAB)
National Debtline
Consumer Credit Counselling Service (CCCS)
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