If you owe money to someone and they take legal action against you, you might find that there is a county court judgment, otherwise known as a CCJ on your credit report. Today, I’m going to show you how to remove a CCJ. In this comprehensive guide I’ll explain:
What does CCJ stand for ?
What happens after you receive a CCJ?
Do I have to attend court for a CCJ?
How to remove a CCJ from your credit file?
What happens if I ignore a CCJ
Let‘s get started
Chapter 1
What is a CCJ?
A CCJ stands for county court judgment order that tells you to pay back the money you owe to a creditor. A creditor is someone who has lent you money or provided you with goods or services that you have not paid for. A creditor can apply to the court for a CCJ if you have failed to repay the debt or respond to their letters or notices.
A CCJ can be issued by a county court in England and Wales. The court will send you a claim form that tells you how much you owe, who you owe it to, and how to respond. You will usually have 14 days to reply to the claim form.
If you do not reply to or you admit that you owe the money but do not pay it, the court will issue a CCJ against you. The CCJ will state how much you have to pay, when you have to pay it by, and who you have to pay it to. The CCJ will also be recorded on the Register of Judgments, Orders and Fines which is a public database that everyone can access.
Chapter 2
How do I respond to a CCJ claim?
If you receive a CCJ it is important that you do not ignore it. A CCJ can affect your ability to get credit such as loans, mortgages, credit cards or even bank account. It can also affect your employment prospects, as some employers may check your credit history before hiring you. It can also affect your ability to rent a property, as some landlords may check your credit history before letting you rent.
If you pay the total amount of the CCJ within one month of receiving it you can get the CCJ removed from the register and from your credit file. This means that it will not affect your credit rating or show up on any future credit checks.
If you pay the full amount of the CCJ after one month of receiving it, you can get the record of the CCJ marked as satisfied on the Register and on you credit file. This means that people searching the register or checking your credit history will see that you have paid the debt. However, the CCJ will still remain on the Register and on your credit file for 6 years from the date of judgment.
If you do not pay the full amount of the CCJ by the deadline set by the court, or if you only pay part of it, the record of the CCJ will remain as unsatisfied on the Register and on your court file. This means that people searching the Register or checking your credit history will see that you still owe money. The creditor can also take further action against you to enforce the CCJ and recover the debt.
Chapter 3
Is a court appearance required for a CCJ?
You do not have to attend court for a CCJ unless:
· You want to dispute the claim and defend yourself in court.
· You want to ask for more time to pay or for a different payment arrangement.
· You want to apply for the CCJ to be cancelled (set aside) because you did not receive it or respond to the claim form.
· The creditor asks for an order that requires you to attend court and provide information about your income and expenses.
If any of the above situations apply to you, you should contact the court as soon as possible and follow their instructions. You may have to fill in some forms and provide some evidence to support your case. You may have to pay some fees or costs.
Chapter 4
Can I remove a CCJ?
If you receive the claim form for any CCJ, there are several ways that you can deal with it depending on your situation.
1. If you agree that you owe the money and can afford to pay it in full
within 30 days, you should do so as soon as possible. This will prevent a CCJ from being issued against you and affecting your credit rating.
2. If you agree that you owe some of the money but cannot afford to pay it in full within 14 days, you should contact the creditor and tried to negotiate a payment that suits both of you. You should fill in the admission form that comes with the claim form and send it back to the court. The court will then decide how much you have to pay based on your income and expenses. You may have to pay some interest and costs as well.
3. If you disagree that you owe that money, or the amount claimed, you should fill in the defence form that comes with the claim form and send it back to court within 14 days. You should also provide any evidence that support your case. The court would then decide whether to accept or reject your defence. If they accept it, the claim will be dismissed and you will not have to pay anything. If they reject your defence, they will issue a CCJ against you and you will have to pay the amount plus interest and costs.
4. If you have a valid reason for not paying the CCJ or did not receive the claim form. The court would then decide whether to accept or reject your defence. If they accept it, the claim will be dismissed and you will not have to pay anything. If they reject your defence, they will issue a CCJ against you and you will have to pay the amount plus interest and costs.
5. Its been 6 years since you received the CCJ. Contact the credit reference agencies to remove the CCJ from your credit record and contact the Registry to request an automatic removal from the Register
Chapter 5
Disregarding a CCJ
Ignoring a CCJ can have a serious impact on your financial wellbeing in several ways:
· You may be refused credit for a loan, mortgage, credit card or mobile phone contract
· It may affect your employment prospects as some employers may check your credit record as part of their background checks
· You might not be able to rent a home
· Your credit score will suffer
· The creditor may still want to pursue enforcement proceedings by applying to seize your personal belongings, deduct money from your wages, or secure the debt against your property.
I really hope that you enjoyed my Definitive Guide to How to Remove a CCJ. I’d like to hear from you and if you would like my help. As a specialist in CCJ removal, provided you act fast, I can often have your CCJ set aside swiftly and efficiently with the claimant’s consent
Which tip from today’s guide appealed to you? Let me know by booking a free no obligation chat below
Winnie Onyekwere
Mediator LLB LLM
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