Read Time 5 Minutes, 20 Seconds

Receiving a default notice is not the same as receiving a CCJ. You will receive a default notice if you miss some payments for months in a row or haven’t settled the debt at all in the beginning. But CCJ stands for County Court Judgement. You will surely receive a CCJ if the debts are true and you have already neglected the debt default notice.

Let me explain further…

Charlie Walsh
Last updated on 2 October 2023
Fact Checked

Table of Contents

1. What is a Default Notice?
2. Is a Default the Same as a CCJ?
3. What Should You Do When You Receive a Notice of Default?
4. What Happens When You Get a Default Notice?
5. What is a CCJ?
6. What if I ignore a CCJ?
7. What is Worse a Default or CCJ?
8. What to Do with a CCJ Claim?
9. Defaulting on a CCJ
10. How do I Repair My Credit History After a CCJ?
11. What is the Debt Breathing Space Scheme?
12. CCJ Contact Details
13. Where Can I Find Expert Guidance?
14. Need more help in dealing with your debt?
15. Key Points:


Searching online whether your default debts are the same as receiving a CCJ from the court implies that you have already received a defaulted debt notice. Plus, you are not aware whether it is a CCJ.

Yes, default debts and CCJ-received debts share some similarities. But it’s crucial to understand that receiving a default notice is not the same as receiving a CCJ. However, keep in mind that defaulting on an account could potentially lead to the issuance of a CCJ.

Let’s delve into what you should be aware of regarding defaults on accounts and CCJs. I will elucidate the distinction between a default and a CCJ, as well as outline the steps to take if you receive a default notice or a CCJ claim form.

By reading this article, we hope to give you an in-depth answer to the question of which is more detrimental: a default or a CCJ.

What is a Default Notice?

A Default Notice is a formal communication sent by a lender in the UK when a borrower fails to meet the agreed-upon terms of a credit agreement. It typically occurs when a borrower misses a payment for a couple of months straight. Or doesn’t make the full payment for a repayment instalment.

The creditor’s main purpose of a Default Notice is to inform the debtors that they have breached the terms of the credit that they agreed upon initially. Through this notice, your original creditor will let you know that they will take further action if the issue is not resolved within a specified period (usually 14 days).

These further actions can include,

1. Declaring to settle the entire debt due immediately
2. Or initiating legal proceedings.

Here, the Default Notice serves as a warning to the borrower and gives them an opportunity to rectify the situation before more severe consequences (like a County Court Judgment (CCJ)) come into play.

Is a Default the Same as a CCJ?

A Default and a CCJ are not the same. However, both of these procedures record negative marks on a person’s credit history.

  • Default is a notice sent by the lender as an initial step when a borrower misses payments. It gives them a chance to remedy the situation.
  • On the other hand, a County Court Judgement (CCJ) is a legal judgment issued by a county court against a borrower who has not resolved their debt issues, often following a Default.

A CCJ is a more serious and legally binding step that can result in significant consequences. These consequences can include,

1. A court order to repay the debt,
2. Potential asset seizure,
3. And a lasting negative impact on one’s credit report for six years.

As you can see, a Default Notice is a warning sign. On the other hand, a CCJ represents a legal action taken by a court against a debtor who has failed to address their financial obligations.

What Should You Do When You Receive a Notice of Default?

You should not take this default notice lightly. It is because receiving a Notice of Default in the UK is a significant financial matter that requires immediate attention and responsible action.

Here’s a concise guide on what to do:

Review the Notice:

You can begin by carefully examining the Notice of Default.

Then, you need to understand:

1. The Reasons for receiving the default,
2. The total outstanding amount,
3. And the deadline by which you must address the issue.

In the context of this notice, Your creditors will let you know that they will sort your debt under the default debt category if you keep ignoring the payments. In addition to that, you will be required to make up for missed payments before the due date mentioned in the default notice.

The due date mentioned in the notice will be at least 2 weeks ahead. But most likely, it could be extended to 30 days if you discuss it with your lenders properly. Remember to make sure all the information is accurate.

Contact Your Lender:

Now, reach out to your lender as soon as possible. It will demonstrate your commitment towards resolving the situation. Here, you can discuss the reasons behind the default and inquire about potential solutions.

Make sure to talk with them in a way that they get convinced enough about the financial hardships you are currently facing. Surely, the lenders may offer options such as a repayment plan, extended deadlines, or temporary relief to help you get back on track if your story is proven true.

Assess Your Finances:

After contacting your creditors, take a close look at your overall financial situation. Then, create a budget that prioritises essential expenses and allocates funds to clear the default. Remember, Being proactive in managing your finances is crucial to resolving the issue.

Seek Professional Advice:

You are allowed to consider seeking advice from a financial counsellor or debt advisor if you’re unsure about how to navigate the default. They can provide you with expert guidance on debt management and negotiations with creditors.

Comply with Deadlines:

You need to make sure all the deadlines are met on time if you reach an agreement with your lender after receiving a Default notice. It is because your lenders may start taking legal action against you if you fail to comply with the new agreement.

Monitor Your Credit Report:

We strongly advise you to regularly check your credit report to verify the accuracy of the default’s reporting. You can promptly dispute them with the credit reporting agencies if you spot any errors.

Important to keep in mind

Taking these steps promptly and responsibly can help you address a Notice of Default effectively. Additionally, it will minimise the potential impact on your financial stability and credit history.

The notice of default will not be issued if you manage to catch up on the missed payments and cover any additional charges within this period. It’s highly advisable to strive for this outcome.

As you can see, openly communicating with your lender and proactively approaching to resolve the issue are key to finding a favourable resolution. Additionally, you have the right to seek guidance from a debt advisor if facing hardship in dealing with your lenders alone.

What Happens When You Get a Default Notice?

When you receive a Default Notice in the UK, it’s a critical point in your financial relationship with a creditor.

Here’s what typically happens:

1. Receipt of the Default Notice: Here, you’ll receive a formal letter from your creditor. It will indicate that you’re at risk of defaulting on your account. It can happen due to missed payments or breaches of your credit agreement.
2. Warning Period: The Default Notice will specify a timeframe of 14 days to rectify the situation. Sometimes, it can extend up to 30 days. The default notice letter will clearly state the deadline by which you need to catch up on the missed payments and any additional charges.
3. Resolution Opportunity: The notice of default will not be applied if you can make the required payments, including any arrears and fees, within the set timeframe. Achieving this is the best possible outcome, as it helps protect your credit history and financial standing.
4. Credit Impact: Failing to address the default notice within the given period can have adverse consequences. The default debt will be recorded on your credit file. It will negatively affect your credit score. And you may face difficulties in obtaining new credit in the future.
5. Legal Action: In some cases, the creditor may take legal action against you if the default remains unresolved. These legal actions can include getting a County Court Judgment (CCJ) or other legal measures to recover the debt.
6. Debt Advice: It’s crucial to seek advice from a debt advisor if you’re struggling to meet the terms outlined in the Default Notice. They can help you explore options like debt management plans, negotiation with creditors, or other strategies to address your financial difficulties.

Receiving a Default Notice is a pivotal moment. In these situations, responsible action is essential to avoid more severe consequences for your credit and financial stability.

What is a CCJ?

A CCJ stands for County Court Judgment in the UK. It is a legal order issued by a county court. This court order is taken for individuals or businesses that fail to settle a debt that they owe to a creditor. The creditors use this formal legal step to recover debts from their debtors as a last resort.

Here’s how they work:

1. Creditor’s Action: The creditor can take legal action by applying for a CCJ in court. This happens only if a debtor consistently fails to make payments on a debt. This involves providing evidence of the debt and the debtor’s failure to meet their repayment obligations.
2. County Court Judgment Issued: A CCJ is issued against the debtor if the court finds out you really owe the creditor. This judgment confirms the amount owed and makes you legally responsible for the debt.
3. Credit Report Impact: Receiving a CCJ leaves a significant negative mark on the debtor’s (your) credit report and can seriously affect their creditworthiness. It can become challenging to obtain new credit or loans. Plus, it may lead to higher interest rates when credit is available.
4. Repayment and Satisfaction: You need to settle the debt in full within 30 days of receiving the County Court Judgement in order to mark it as “satisfied” on your credit report under CCJ. The CCJ will be updated to show that it’s been satisfied if paid within this timeframe. It is less damaging to their credit score than an unsatisfied CCJ.
5. Long-lasting Effect: A CCJ remains on a person’s credit report for six years. It will last in your credit history even after you have settled the debt. As a result, you may find difficulties securing credit, renting a property, or engaging in certain financial transactions during this period.

Therefore, It’s essential to address CCJs promptly by either paying the debt in full. Or at least you need to arrange a repayment plan with the creditor to minimise their long-term impact on your financial standing.

What if I ignore a CCJ?

Ignoring a County Court Judgment (CCJ) in the UK can have serious consequences for your finances and legal standing.

Here’s what can happen if you choose to disregard a CCJ:

1. Enforcement Actions: Once a CCJ is issued against you, the creditor has various options to enforce it. They can apply for enforcement methods such as a warrant of control. It allows bailiffs to visit your home to seize goods to cover the debt. This can be highly disruptive and distressing.
2. Wage Garnishment: Your creditor can apply for an attachment of an earnings order if you ignore a CCJ. This means a portion of your salary will be deducted directly by your employer and paid to the creditor until the debt is satisfied.
3. Freezing of Assets: In some cases, a creditor can apply for a charging order against your property, essentially putting a legal charge on your home. This can lead to the forced sale of your property to repay the debt.
4. Damaging Credit Impact: Ignoring a CCJ can severely damage your credit score and make it challenging to obtain credit in the future. It will stay on your credit report for six years, and lenders are likely to view you as a higher credit risk.
5. Increased Debt: The longer you ignore a CCJ, the more interest and fees may accrue, increasing the total amount you owe.
6. Bankruptcy: They also have the authority to initiate bankruptcy proceedings against you or claim funds from the sale of your property if you have a debt exceeding £5,000.

As you can see, It’s not a wise idea to ignore a CCJ. There is plenty of time in between these procedures. Thus, use that time to find a reliable solution to your default debt before things get escalate to this extent.

What is Worse a Default or CCJ?

In the UK, both a Default and a CCJ (County Court Judgment) have negative consequences for your financial situation. Still, they represent different stages of debt-related issues, and one is generally more severe than the other.

A Default is an early warning notice sent to you by your original creditors. They will let you know that you’ve missed payments or breached the terms of a credit agreement With this notice. It serves as a notice from your creditor to give you an opportunity to rectify the situation.

A Default won’t be recorded on your credit report if you can catch up on payments within the specified timeframe. However, your payment history might still be affected. Additionally, it can lead to more severe actions like a CCJ if you fail to address the Default.

On the other hand, a CCJ is a legal judgment issued by a county court after a creditor takes legal action against you for failing to repay a debt even after receiving a default notice. A CCJ is a more severe step compared to a Default as it involves court proceedings.

It has a significant and lasting negative impact on your credit report. And this negative effect creates difficulties to,

1. Obtain new loans and credit,
2. Rent a property,
3. Engage in various financial transactions for six years.

Additionally, a CCJ can result in enforcement actions such as,

1. Wage garnishment,
2. Property seizures,
3. Even bankruptcy if the debt remains unpaid.

In summary, while both a Default and a CCJ have adverse effects on your credit and financial situation, a CCJ is generally considered worse because it represents a more advanced stage of debt-related problems. Plus, it can result in more severe legal and financial consequences.

Therefore, It’s essential to address Defaults promptly to avoid the escalation to a CCJ whenever possible.

What to Do with a CCJ Claim?

It’s crucial to take immediate and well-informed action to address the situation effectively when you receive a County Court Judgment (CCJ) claim in the UK.

Here’s what you should do:

1. Don’t Ignore It: Ignoring a CCJ claim won’t make it go away and can lead to more severe consequences. Take the claim seriously and act promptly.
2. Read the Claim Form: Carefully review the CCJ claim form. It will detail the creditor’s allegations, the amount owed, and instructions on how to respond.
3. Seek Legal Advice: Consider consulting a solicitor or a legal advisor if you’re unsure about how to respond. They can provide guidance on your legal options and help you prepare a defence if applicable.
4. Respond Within the Deadline: You typically have 14 days to acknowledge receipt of the claim form, followed by an additional 14 days to submit your defence or make payment arrangements. Failing to meet these deadlines can result in receiving a default judgment against you.
5. Choose Your Response: You need to decide whether you want to dispute the claim, negotiate a settlement, or make arrangements for payment. The appropriate response depends on the specifics of your situation.
6. Complete the Forms: You’ll need to complete the necessary forms provided with the claim pack. Then, submit it to the court if you intend to dispute the claim.
When responding to a CCJ form in the UK,

Try to explain your financial situation with figures. If you could include a budget that demonstrates your income and expenses, it can increase the likelihood of your proposed repayment plan being accepted. Failing to provide this information could lead to the court demanding immediate full payment.

If necessary, attend the court hearing to present your case during the CCJ process. After a judgment, ensure compliance with the court’s terms, whether it involves debt repayment or following court orders.

Regularly monitor your credit report for accurate CCJ reporting. Request it be marked as satisfied in your credit history if you settle the debt within 30 days of receiving the CCJ.

Taking timely action, seeking expert advice, understanding the legal process, and meeting deadlines are crucial steps to protect your finances and minimise the impact on your credit history.

Defaulting on a CCJ

Defaulting on a County Court Judgment (CCJ) in the UK is a serious financial matter with significant consequences. When you default on a CCJ, it means you fail to comply with the court’s judgment and the terms specified within it.

Typically, it happens when it not paying the debt owed or not adhering to any court-ordered actions.

Here’s what happens when you default on a CCJ:

1. Enforcement Actions: Defaulting on a CCJ gives the creditor the right to take further enforcement actions to recover the debt. This can include applying for a warrant of control allowing bailiffs to seize assets or goods to cover the debt.
2. Attachment of Earnings: The creditor can apply for an attachment of earnings order if you’re employed, where a portion of your salary is deducted directly by your employer to repay the debt.
3. Interest and Fees: Defaulting can result in additional interest and fees accumulating on the debt, making it even more challenging to repay.
4. Negative Credit Impact: Defaulting on a CCJ has a severe and long-lasting negative impact on your credit report. As a result, you may find difficulties in getting new loans and credit cards in the future.
5. Possible Bankruptcy: In extreme cases, persistent defaulting on a CCJ may lead to the creditor petitioning for your bankruptcy if the debts are higher than £5,000. It could result in the sale of your assets, including your home.

Therefore, It’s crucial to address a CCJ promptly and responsibly to avoid defaulting. Seeking professional advice, negotiating with creditors, and exploring repayment options are essential steps to manage the situation effectively and protect your financial well-being.

How do I Repair My Credit History After a CCJ?

Repairing your credit history after a County Court Judgment (CCJ) in the UK can be challenging, but it’s not impossible.

Here are steps to help you improve your creditworthiness:

1. Satisfy the CCJ: The first thing you need to do is to pay the CCJ in full within 30 days of the judgement date if you haven’t already done so. This will change the CCJ status on your credit report to “satisfied,” which is less damaging than an unsatisfied CCJ.
2. Check Your Credit Report: Regularly review your credit report to ensure the CCJ information is accurate. If there are errors, dispute them with the credit reporting agencies to have them corrected.
3. Build a Positive Credit History: You need to work on building a positive credit history to offset the negative impact of the CCJ.

  • Consider applying for credit products, such as a credit card or a small personal loan that is designed for individuals with poor credit. Use them responsibly by making timely payments and keeping balances low.
4. Register on the Electoral Roll: Ensure you’re registered on the electoral roll at your current address. This can positively impact your credit score.
5. Demonstrate Responsible Financial Behavior: Consistently meet your financial obligations, including rent, utility bills, and any credit agreements. This demonstrates to lenders that you are responsible with your finances.
6. Budget Wisely: Create a budget to manage your finances effectively. This not only helps you meet your financial commitments but also shows lenders that you are financially responsible.

Repairing your credit history after a CCJ takes time and effort. But you can gradually rebuild your creditworthiness and improve your financial prospects by following these steps and consistently demonstrating responsible financial behaviour.

Seek Professional Advice:

Consider seeking advice from a credit counsellor or debt advisor if your financial situation is complex. They can provide tailored guidance on improving your creditworthiness.

Be Patient:

Time is a significant factor in credit repair. As the CCJ ages, its impact on your credit score diminishes. It will be removed from your credit report after six years.

What is the Debt Breathing Space Scheme?

The Debt Breathing Space Scheme is a legal initiative in the UK designed to provide individuals in serious debt with a period of relief from creditor actions and interest charges. It allows them to better manage their financial difficulties. This was officially started on May 4, 2021.

Here’s how it works:

1. Breathing Space Period: Eligible individuals can apply for a Debt Breathing Space with the assistance of a debt advisor.

  • This grants them a 60-day period during which creditors are not allowed to pursue debt collection actions.
2. Debt Advice Requirement: To access this scheme, individuals must work with an authorised debt advisor who will assess their financial situation.

  • They can assist you in applying for the Breathing Space and help create a debt repayment plan.
3. Applicable Debts: The scheme covers most types of unsecured debts, including credit card debt, personal loans, medical bills, and utility arrears.

  • However, it does not apply to secured debts like mortgages or court-ordered payments, such as child support.
4. Financial Stability: During the Breathing Space period, individuals are encouraged to seek advice and take steps to improve their financial stability. It offers them a temporary respite to manage their debts more effectively.
5. Protection from Creditor Actions: Creditors are legally required to cease contact and collection efforts during this period. They cannot take legal action or add interest or charges to the included debts.

  • It includes giving a break for legal proceedings, enforcement actions, and interest charges on most debts.
6. Reassessing Eligibility: The debt advisor may revoke the Breathing Space if the individual’s financial situation changes and they no longer meet the criteria.
Is it possible for a person who has a mental health crisis to apply for a breathing space?

A mental health crisis breathing space is accessible to individuals undergoing treatment for mental health crises. Its duration aligns with the duration of their treatment and extends an additional 30 days beyond the treatment period.

As you can see, the Debt Breathing Space Scheme aims to provide individuals facing financial hardship with an opportunity to regain control of their finances without the pressure of ongoing creditor actions. It offers a lifeline for those struggling with unmanageable debt, allowing them to work toward a more stable financial future.

CCJ Contact Details

You can use the contact method below to get in touch with the UK government officials related to CCJ for debt queries.

Website: https://www.gov.uk/county-court-judgments-ccj-for-debt

Where Can I Find Expert Guidance?

In the UK, there are numerous charity debt organisations that provide free debt counselling, financial guidance, and legal assistance concerning debt-related matters. Their knowledgeable advisors can guide you through available choices and help identify the most suitable solution for your situation.

Consider contacting the following organisations for assistance:

1. StepChange
2. National Debtline
3. Citizens Advice
4. Debt Advice Foundation.

Need more help in dealing with your debt?

There are a number of Other debt solutions available in the UK that you could use to write off some of your debt. But keep in mind that choosing the right solution will aid you in writing off some of your debt, while choosing the wrong one will worsen your debt situation.

Here, the key is to determine what debt solution suits your personal financial situation in the best way possible.

Fill out the online form by clicking here to get started.

  • Several UK residents might have the legal option to write off some of their debt.
  • Defaults and CCJs are interconnected but distinct. A default happens when payment is missed, and a CCJ (County Court Judgement) is a court order for unsettled debt.
  • A CCJ carries greater consequences compared to receiving a default notice. And it can become the cause to implement additional legal measures, such as bailiff involvement or wage garnishment.
  • You should aim to rectify missed payments or consult a debt advisor for guidance upon receiving a default notice.
  • Avoid neglecting the CCJ claim form in the event of receiving it. Instead, respond by detailing your financial situation and presenting a proposed repayment plan.

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