What is a CCJ?

You will often hear this term when you are applying for credit. Most companies will state that they wonít allow people with CCJís to apply for a loan. This means that if you have one on your credit file it can have a large effect on your financial life. There are however some instances where companies will accept people with CCJís.

What is the definition of a CCJ?

CCJ stands for County Court Judgement. This is something that can be passed against you if you owe money and you havenít repaid it within the timescale set out when you borrowed the money. Not only does it show this but it also sets out how much you owe and also how the money needs to be paid back, and by when.

Court for CCJ

Warning letter

You will be warned before you are given a County Court Summons. The lender must do this, and it will usually be in the form of a letter. This letter will set out what you need to do to end the default and what will happen if you fail to pay. This is a letter that needs to be taken seriously and it should be sent to you 14 days before a County Court Summons.

This is the final chance you have to settle the loan without a County Court Judgement being issued, so it can be a good idea to try to come to an agreement with the loan provider at this stage.

If your debt issues are not resolved by this you will then be sent a claim form. This form needs to be filled in as thoroughly as possible and sent back within 14 days. The court needs to know your situation in regards to your income and outgoings, hence why they send this form out. You can get help from a debt advice company when you are filing out this this form as they will know what is best for you in the situation that you find yourself in.

You can offer to pay an amount that you know you can afford and will be able to actually pay, or you can argue that you donít agree with the amount that you owe. Again, it is best to get qualified advice before you do this.

If the offer that you make is accepted by the court they will let you know how to make payments. If your offer isnít deemed acceptable by the court, they will issue a CCJ that gives you an amount to pay that has been decided by the court.

The consequences if you donít stick to the CCJ terms

This is where you could receive a visit from a bailiff, who will try to collect the money that you owe. A charging order could be made on your home by the creditor, or an Attachment of Earnings Order could be secured which means the money you owe could be deducted by your employer from the amount you are paid each month.

It is always best to speak to a debt charity, who can advise you on the best course of action. CCJís stay on your credit record for six years, however this wonít happen if you pay off your debt within thirty days of receiving the initial order.

You are likely to have significant problems obtaining a mortgage or other forms of credit if you have a CCJ on your credit file, so it should be taken very seriously.

The content in this article should not be taken as advice. Should you need advice you should speak to a debt charity or Citizens Advice who have qualified professionals to help you.