What is a CCJ?

What does a CCJ mean and what to do if you receive one.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Source: Getty Images

A CCJ, or county court judgement, may be something you have never heard of or may be something you are all too familiar with. Either way, information is power, so here is a breakdown of what a CCJ is, why you might receive one, and what to do if you do.

What is a CCJ?

A CCJ, or county court judgement, is a court order in England, Wales and Northern Ireland (in Scotland it is called enforcing debt by diligence). It is registered against you if you fail to repay money that you owe.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

A creditor must first send you a warning letter or default notice if you are behind on your debt payments. There needs to be a period of at least 14 days between when you receive a warning letter and when you receive the county court claim form. You then have 14 days to reply to the claim form.

What do I do next?

The key thing with a CCJ is not to ignore it. If you do, you run the risk of being ordered to repay the debt in one go.

If you receive a CCJ, your first stop is with a free debt advice service. The service will be able to advise you on the best way to respond.

Options include:

  • If you agree with how much you owe: Admit the claim and submit an income and expenditure form, which will show how much money you have available to pay off the debt.
  • If you disagree with how much you owe: File a defence.
  • If you intend to defend the claim but need longer than 14 days to prepare your defence: Submit an acknowledgement of service.

Judgement time

There are two judgements that you can receive from the court:

  • If you have responded to the claim form and given the correct information about your circumstances, it is likely you will receive a judgement by instalments, which will allow you to pay off the debt in an agreed period of time.
  • If you have ignored the form, you run the risk of a judgement forthwith, where the whole amount you owe will be due immediately.

It is very important that whatever the judgement, you try to keep to the terms of the CCJ. If you do not you run the risk of bailiff action, a charging order secured on your property, or an attachment of earning order (where the money owed is deducted from your wages).

Your credit future

Receiving a CCJ can have a negative impact on your credit score and make it difficult to obtain a credit card or loan in the future. CCJs remain on your credit record for six years. Often credit card providers specify that they will not consider applications from borrowers who have received a CCJ in the past.

However, all is not lost. If you do manage to repay your debt and your file is marked as ‘satisfactory’, then there are options available to you. There are an increasing number of credit cards now available for borrowers with bad credit. These cards will judge your application on your personal circumstances, so if you have showed yourself to be a good borrower since your CCJ you have put yourself in a better position.

Some of these cards also give you the opportunity to rebuild your credit score by giving you a manageable credit limit at the start, which will then be increased if you make your monthly payments and do not exceed your limit.

It is all too easy to take on too much debt or end up in a spiral of high interest payments and credit card fees. When thinking of taking on a credit card or loan, consider whether you can afford it and make sure you understand what you are signing up for, because the ramifications of not repaying what you owe can be severe.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

MyWalletHero, Fool and The Motley Fool are all trading names of The Motley Fool Ltd. The Motley Fool Ltd is an appointed representative of Richdale Brokers & Financial Services Ltd who are authorised and regulated by the FCA, and we are permitted in this capacity to act as a credit-broker, not a lender, for consumer credit products (our FRN is 422737). The Motley Fool Ltd does not have permissions for, and does not advise on, investment products and services, but may provide information on investment products and services.

The Motley Fool receives compensation from some advertisers who provide products and services that may be covered by our editorial team. It’s one way we make money. But know that our editorial integrity and transparency matters most and our ratings aren’t influenced by compensation. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. The Motley Fool has recommended shares in Lloyds, Tesco and Barclays.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »