County Court Judgments
County Court Judgments (CCJs) are commonly used in the UK by creditors wishing to enforce repayment of a debt. If you have a County Court Judgment against you, failing to pay can lead to further enforcement measures including the use of bailiffs.
What is a County Court Judgment?
When you owe money to a creditor, they may apply to the court for a judgment to be made against you in relation to the debt. A Count Court Judgment is a demand for payment issued by the court on behalf of the creditor.
Your financial situation is assessed by the court at a hearing, and a repayment amount may be arrived at based on the information you provide. Problems can ensue if you fail to make these payments, or do not return the necessary forms to the court.
What happens if you have CCJ debt?
If you are unable to pay a County Court Judgment, your creditor can apply to the court for enforcement action to be taken. This could take a number of forms, but initially they may apply for an order to obtain more information about your financial situation so they can decide on the most appropriate form of enforcement.
Enforcement measures could include:
The court may use bailiff services to collect the debt, in which case you will have seven days in which to pay. Non-payment could result in a bailiff visit to seize goods to sell in order to recover the debt. In this case, bailiff fees can be added to the amount you owe.
Attachment of earnings order
The court orders your employer to deduct a fixed repayment each month from your wages, and pay it to your creditor.
Your creditor can apply for a charging order to be placed on your home. This means that if the property is sold, your creditor must be repaid.
Third party debt order
The court can order a third party, such as your bank or building society, to repay the creditor directly from the money in your account(s). This is sometimes known as a ‘garnishee order’ and in some instances can be used to deduct a lump sum from an account – if you have received redundancy pay, for example, or an endowment policy payment.
What can you do about CCJ debt?
Seeking professional assistance is an important part of successfully dealing with County Court Judgment debt. UK Debt offers reliable support and guidance and will be able to advise on your best options.
Eligibility criteria apply, but these could include:
Amending the repayments
Requesting the court reconsiders the CCJ repayments via one of two processes – redetermination or variation.
Setting aside the CCJ
Make an application to the court to set aside the County Court Judgment – this means that it would be cancelled, returning you to the position you were in prior to its issue.
Individual Voluntary Arrangement (IVA)
If you are eligible for an IVA, your CCJ debts are taken into account before the IVA payment is made. An IVA allows you to repay other creditors over a longer period of time.
If declaring bankruptcy is your only viable option, your debt will be written off once all assets have been sold and creditors repaid as far as possible.
For more information about County Court Judgments and what happens when you cannot afford to pay, call our expert team at UK Debt. We specialise in helping people escape serious debt, and can offer you a free same-day consultation so you can take action quickly.