It is often quite common to get a County Court Judgement (CCJ) if you have kept ignoring your creditors and debt collectors for a long period of time without settling the debts. However, those creditors who pursuing a CCJ against you are required to fulfill strict legal conditions in order to go to court.
In this article, you will get more insight into it.
Table of Contents
MORE
LESS
It does not matter whether you’re just expecting legal action or have already received a CCJ claim pack. Our guide will help you in how to deal with the CCJ process. Here, we have broken down the complete County Court Judgement process so you can learn exactly what to expect and what you can do to fight back. Thus, keep reading…
What is a County Court Judgement (CCJ)?
County Court Judgement (CCJ) is a type of court order that is used to make a debtor legally responsible for the debt in the UK (in England, Wales and Northern Ireland).
The creditor (the individual or company to whom the debt is owed) may take legal action to obtain a County Court Judgment (CCJ) against you if you fail to make the required payment or adamantly refuse to do so.
However, it is not as easy as looking for the claimant to adhere to a specific County Court Judgment procedure to take legal action against a debtor to repay the debt in the UK. It’s because there are strict rules and regulations in place for creditors to follow before escalating to such an extent.
Not everyone ends up receiving a CCJ order. Creditors typically use it as a last resort after you fail to respond or settle the debt for them properly. We will explain this process to you via the below context in this article. Therefore, keep reading…
Beating County Court Judgement process.
One way to eliminate some of your debts is by writing off some of them. There are a number of Alternative Debt Solutions available in the UK that you can use to overcome this debt issue.
Alternatively, feel free to fill out our online form by clicking here if you want personal help from our Money Advisor Team based on your current financial standing.
But keep in mind each of these solutions comes up with unique conditions that you need to fulfil in order to get acceptance. Choosing the right solution could help you in writing off some of your debt, while the wrong one will worsen your financial situation. Thus, it is better to seek legal advice before applying for these solutions.
How does a County Court Judgement process work?
Your original creditor will report you (as the debtor) to the County Court to initiate the County Court Judgement process. Then, the court will make you (as the debtor) legally responsible for repaying the unpaid debts if the debts are proven yours.
In order to do so, they may do it by issuing a:
In some instances, if you feel that it is difficult for you to repay the debt in monthly instalments, which the judge has stated, you can inform them that it is difficult to repay that amount. But in order to get acceptance, you need to provide provable proof. This process is known as Redetermination.
Plus, It is essential to fulfil the judgment, as failing to do so may prompt the claimant to pursue additional actions. Keep reading. We will elaborate on this later in this guide.
Do you get a warning before a CCJ?
It is necessary for you to note that Creditors, in general, would notify you beforehand prior to them initiating the County Court Judgement (CCJ) process. They will let you know about their future actions regarding legal procedures via one last letter titled “Letter Before Action (LBA)”.
This LBA letter is the last chance you can have to solve the debt issue before it turns into a court issue. Therefore, we strongly suggest you reach out to your creditors and solve the debt matter as soon as possible.
As a way of notifying you, LBA can include the following:
- A Letter of Claim
- And then, a default notice
If you decide not to respond to these notifications, the Creditor will get the ability to apply for a CCJ. And the court will surely grant your creditors a CCJ if the debts are proven true. As a result, you may get a claim pack from the court.
How to prevent getting a CCJ
You can avoid having a County Court Judgment (CCJ) registered against you if you’re able to present a defence against the court’s claim for the amount of money owed to creditors.
Conversely, You will end up getting a CCJ conjugation if the court finds out you really owe them, making you responsible for the debt.
County Court Judgement process
Applying for a CCJ against a debtor is a last resort that a creditor wishes to use. Below are some of the initial steps that a creditor must take before applying for a CCJ.
Your creditors need to follow the pre-action debt protocol initially in order to be eligible to apply for a CCJ.
The initial stage involves sending a letter of claim to the debtor, wherein a proposed resolution to the issue should be presented.
These reachouts are designed to get in touch with you and discuss your options to solve the debt issue. There are mainly two options they will try to convince you to select.
Within the letter of claim, the creditors must provide a 30-day window for the recipient (the debtor) to respond and agree to any suggested resolutions.
The creditors have the right to send a default notice to the debtor if the 30-day window has passed out without receiving a response from the debtor. Your creditors will determine you as a non-responder if you have ignored their notice letter or even if you cannot afford their suggested payment plan.
The default notice is the one last notice that you will receive instructing you to settle the outstanding debt, or they will start taking legal proceedings against you.
Additionally, this notice letter should include the default information sheet mandated by the Financial Conduct Authority in order to become a default notice.
Suppose the debt falls under the Consumer Credit Act. In that case, it’s important to note that legal proceedings can commence after 14 days following the recipient’s receipt of the default notice.
This grace period allows the debtor additional time to address the situation before legal action can be pursued.
Your creditor will proceed to request a County Court Judgment (CCJ) from the court If a resolution is not reached following the issuance of the default notice. And the court will dispatch a CCJ claim form to you if the debts are proven true.
There are various methods for addressing this form, which I will discuss shortly.
In some cases, individuals manage to reach an agreement with the creditor, but by that time, the CCJ claim process may already be underway. In such instances, it’s advisable to verify with the creditor whether they no longer wish to pursue the claim.
There are professional debt advisors where you could take advice on how to deal with this CCJ claim form if you find hardship in filling it alone. Some advise services charge a fee while some give for free of charge.
There are a number of debt charity organisations like Citizens Advice where you can get help to deal with this CCJ form problems free of charge.
Alternatively, feel free to fill out our online form by clicking here if you want personal help from our Money Advisor Team based on your current financial standing.
The importance of keeping records
It is important for you to keep a record of dealings with the creditors, which includes things such as:
- Copies of all communications with creditors
- Proof of payments
Maintaining comprehensive records of all events can prove immensely valuable in the event you need to challenge a County Court Judgment (CCJ) or dispute a debt that is attributed to you.
The greater the quantity of evidence you can provide, the more robust your defence will be during court proceedings.
The Role of Mediation in CCJ Cases
Mediation plays a significant role in resolving disputes. They serve as a valuable tool in conflict resolution. Their process offers a versatile and confidential procedure for interactions between people and businesses or organisations.
A court-appointed mediator who is independent and impartial facilitates negotiations to reach a mutually acceptable resolution.
Mediation usually occurs either before initiating legal proceedings or during the ongoing legal process. They offer an opportunity for both parties to seek common ground and avoid prolonged litigation.
How to respond to a County Court Judgement (CCJ) claim
It would be better for you to take aid from a Debt Charity like StepChange to respond to a CCJ Claim properly that has been filed against you by your creditors. An experienced advisor knows how to explain the different steps that are needed to solve your court case properly.
They will provide you with an adequate response which includes:
The importance of legal advice
It is important for you to seek legal advice because this can help you deal with the County Court Judgement (CCJ) process efficiently. For that, we strongly suggest you not to fill it alone and take aid from a debt advice service like Stepchange, which provides debt advice free of charge.
Additionally, an experienced debt advisor can assist you in completing the claim form accurately.
You can reach out to a non-profit organisation for help and advice when dealing with a County Court Judgment claim form.
How long do you get to reply to a County Court Judgement (CCJ) claim?
You are required to respond within a 14-day time period unless you have permission for an extension Once you get a CCJ Claim after a Creditor initiates a County Court Judgement process, .
The county court would decide to issue a default judgment against you if you decide not to respond in time or not to respond at all. Through this default judgement, the court will order you to repay the total debt in a single payment or with the help of instalment payments.
This happens because the court may not have details about your financial situation if you haven’t responded to the CCJ claim. As a result, the court will make you responsible for paying the un affordable debt in full by default.
How long does a County Court Judgement (CCJ) take to process?
The court typically reaches a decision within a span of a few days to a couple of weeks after you respond to the CCJ claim form. The exact duration may vary. The duration to make a court judgement will be influenced by the complexity of the case.
Prior to this stage, there should be a 30-day gap between the creditor sending a letter of claim and issuing a default notice. Additionally, the initiation of a CCJ claim typically occurs 14 days after the default notice, and you have a 14-day window to reply to the CCJ claim pack.
Hence, the entire CCJ process may extend beyond two months, including the pre-debt protocol.
Costs Associated with the CCJ Process
These are the costs that are involved in setting up a County Court Judgement process:
| Claim amount | Court fees |
| Up to £300 | £35 |
| £300.01 to £500 | £50 |
| £500.01 to £1,000 | £70 |
| £1,000.01 to £1,500 | £80 |
| £1,500.01 to £3,000 | £115 |
| £3,000.01 to £5,000 | £205 |
| £5,000.01 to £10,000 | £455 |
| £10,000.01 to £200,000 | 5% of claim |
| More than £200,000 | £10,000 |
What is setting aside a CCJ?
Suppose you believe that the Creditor has initiated a County Court Judgement process without following the correct procedure. In that case, you can reply to the CCJ claim informing them to set aside the CCJ claim, which technically means cancelling it off for a while.
However, this does not mean that your debt would be written off. Instead, it essentially resets the situation and provides the debtor with another opportunity to address the matter correctly before resorting to legal action.
How to get a CCJ set aside:
The first step is to respond to the CCJ claim pack by completing the N224 form if you believe that you need to have your CCJ (County Court Judgment) set aside. However, you must have a provable reason in order to do this. Be prepared to pay a small fee to initiate the process.
In addition to any errors made by the claimant during the process, there should also be some basis for disputing the debt, such as it being an incorrect amount.
Additionally, it is necessary for you to attend at least one court hearing in order to have the CCJ set aside.
How serious is a County Court Judgement?
You need to understand that receiving County Court Judgement (CCJ) is a serious issue that you need to deal with properly.
Suppose you decide not to repay the debt after receiving a County Court Judgement (CCJ) against you. In that case, your creditor has the option to return to the court and seek authorisation to collect the debt through various methods.
The court can give authorisation to your creditors to recover the debt by using one of the following methods.
How much does a CCJ affect your credit score?
It should be noted that receiving a County Court Judgement (CCJ) can negatively impact your credit score by at least 250 points. A missed bill or a debt payment can damage it by 80 points.
Moreover, defaulting on debt can seriously affect your debt negatively. The impact can rise as high as around 350 points negatively.
Worried about bailiffs?
It is recommended for you to get help from a debt charity like StepChange, who may provide you with an adequate solution to work on this particular issue. The bailiffs will be asked to intervene in your debt issue if you have missed a CCJ payment or if you are simply concerned about bailiffs.
CCJ process in a nutshell
It could be concluded by stating that the County Court Judgement process is packed into three steps:
Lastly, you must remember that the chances of receiving CCJ against you highly depend on how you reply to the CCJ Claim.
Key Points
- Responding to a CCJ claim: You can either admit the debt, present a defence, or request an acknowledgement of service if you require more time for preparation.
- Ramifications for failing to repay a CCJ: Ignoring a CCJ could lead to the court enforcing the debt through methods such as employing bailiffs, garnishing your wages, or obtaining a charging order on your property.
- It’s worth noting that many individuals in the UK might have the legal option to write off a portion of their debt.
- Familiarise yourself with the County Court Judgement (CCJ) process: A CCJ is a legal order compelling someone to settle a debt. It involves stages like a letter of claim, default notice, and CCJ claim pack.
- Reversing a CCJ: You have the option to apply for the CCJ to be set aside if the creditor did not adhere to the proper procedures. But this necessitates a valid reason and the potential need to attend a court hearing.
