Getting a County Court judgment (CCJ) will certainly affect your credit report and credit rating and make it tougher to obtain credit facility….
However the impacts do not last for life, and if you can afford to pay the CCJ off immediately you might have the ability to get it removed from your credit report.
Exactly how will a CCJ affect my credit report file?
Most of the times, your credit report will already be impacted by any missed payments or default notices issued by your creditors before the CCJ registered in your name.
Your CCJ will be added to a public data source called the Register of Judgments, Orders and fines. The register is operated by a firm called ‘Registry Trust ‘and all courts send them information of all new CCJs.
Your CCJ will stay on the register for six years from the day of the judgment, even if you pay it off. During this time, anyone can check the public register to find out if you have an outstanding CCJ, for a small fee.
Your CCJ will certainly also show up on your credit report (Public records section) for 6 years from the date of the judgment. Your credit report is not noticeable to the public, but if you attempt to secure additionally credit facility, loan providers will have the ability to see that you have a CCJ.
After 6 years, information of the CCJ will certainly be eliminated from the public register as well as from your credit report data, even if you have actually not yet paid all of it off.
Having a CCJ on your credit report will make it a lot harder to secure more credit. Nevertheless, if you are dealing with personal debt, one of the most crucial thing is that you get suitable debt advice to handle your debt problems. Once you are back in control, your credit scores data can be repaired.
Get debt assistance –Call us on 0203 318 0990 for suitable debt advice and CCJ help
Can I remove a CCJ from my credit report file?
If you pay the CCJ completely within a month of the judgment, you may submit an application to relevant court to remove your CCJ from the public register as well as from your credit report data.
To do this, you require looking for a ‘Certificate of Cancellation’ from the County Court hearing centre, which issued the judgment, providing them with evidence of repayment. You do this utilizing court form N443 Application for a certificate of complete satisfaction/ termination (PDF). There is a court fee to do this, yet if you are n state benefits, you might be able to get this completely free. You can examine to see if you are qualified and apply for help with the court costs online.
When the court has evidence, you have actually paid the CCJ within a month they will contact the Registry Trust to remove the judgment from the public register.
If you pay off the CCJ after a month of the judgement date, you cannot remove it from the register, so it will show up there for six years. During this moment, if you do pay it off, you can relate to the court for a ‘certification of satisfaction’ utilizing the very same process as above.
This will not remove your CCJ from the public register yet it will show anyone that inspects the register that it has been repaid or ‘completely satisfied’. This could make it less complicated to make an application for credit prior to the CCJ drops off your credit score documents, six years from the day of the initial court judgment.
What happens if you cannot pay your CCJ?
If you returned your court forms (Admission) on time, and the creditor or court concurred that the amount you were offering was reasonable, the CCJ might be paid off with the same amount you used as an affordable payment. This will typically be month-to-month instalments.
As long as you pay the appropriate total up to your CCJ in a timely manner, the claimant may not enforce debt liability repayment aggressively. If you are a homeowner, they can apply for a charging order to protect the debt against your residential or commercial property.
If you do not manage, your CCJ the claimant can begin taking more enforcement action.
If you really did not return the forms in time, or you have been asked to pay greater than you can afford you have two options:
- Apply to payment amount you can afford on monthly basis
- Apply to have CCJ Cancelled or ‘Set aside’ if it ought to not have occurred
These options are discussed in more detail in the areas listed below.
Option 1: Apply to payment amount you can afford on monthly basis
If you did not return your admission form on time, or if the financial institution/claimant and court really did not agree with the amount you offered to pay, you might obtain a CCJ, which you cannot manage to pay.
This could be established with month-to-month instalments you cannot pay for, or it might inform you to pay the entire amount immediately. The term ‘forthwith’ is used to define this on the CCJ judgment letter.
For the most part, you can ask the court to reconsider yet you need to act swiftly.
There are two options to ask the court to re-assess the repayment:
This process permits that you ask the court to evaluate the repayment you were told to make towards the CCJ and change them if they are not affordable. This is cost-free to apply, however is just offered if the following problems are fulfilled:
- The CCJ was a ‘judgment after determination’– this will be specified on the judgment letter. This implies you returned your documentation as per schedule; the claimant rejected your offer as well as the court decided or ‘determination’ regarding the rate of payment.
- Your application for redetermination is received by the court no later than16 days from the Day of Judgment on the CCJ judgment letter.
You make an application for redetermination by contacting the court as well as enclosing a copy of your budget plan revealing the quantity you can pay. We have an example letter you can use to do this.
If you are original, a Court officer decided CCJ repayment, when you apply for redetermination a District Judge will examine your form and decide what the rate of payment must be, generally without a hearing.
Yet if a District Judge (County Court Judge) chose the original CCJ repayment, you will be asked to attend your local County Court hearing centre for a hearing to decide the new rate of payment plan.
If original CCJ payments were made a decision by a District Judge at a hearing, you will not be able to get a free redetermination application. This does not happen commonly because most CCJs are made a decision by court officers with no hearing.
This procedure asks the court to change the repayment instalments if they are too high or unaffordable by defendant.
You can request variation any time if your financial circumstances change, yet there is a court fee payable for such application. If you are on a low income, you may be able to get this very free using the form EX160.
To look for variation in your monthly payment, you need to fill in court form N245. This is similar to the N9A admission form.
N245 – Application for suspension of a warrant and/or variation of an order.
You send the completed N245 form to the court with an appropriate fee, or with proof that you are exempt from court fee, use form EX160.
The court will send out the N245 form to the claimant to inspect if they agree with the new instalments. If the claimant does not agree, the court will certainly make a decision for a reasonable payment. Normally this will be done without a hearing.
The court will than write to you with details of the new instalment. There is no guarantee the CCJ instalments will be set at amount you chose to offer.
To avoid the risk of your creditor/claimant beginning further enforcement action, if you’re applying to differ the CCJ you’ll require to maintain paying the instalments agreed in the initial CCJ judgment letter until the court contacts you with details of the new repayment. This can take a couple of weeks.
Received a CCJ and need help and support?
Call our team on 0203 318 0990 for a confidential and no obligation appointment
Option 2: Apply to have CCJ Cancelled or ‘Set aside’ if it ought to not have occurred
You might be able to obtain a CCJ cancelled if it needs to never have actually taken place in the first place. This is referred as ‘Set aside’.
If a CCJ is set aside, it puts you back in the position you remained in promptly before the judgment occurred. This indicates you will obtain a chance to put forward a defence against the CCJ if you missed your chance to do this when the forms were first sent out.
Setting aside a CCJ is typically feasible if every one of the following conditions are satisfied:
- You were not aware about the CCJ, for instance the claim forms were sent out to an address where you longer lives.
- You have a genuine defence against the CCJ, for instance you had already paid it off.
- You act quickly as soon as you find out about the CCJ.
There is a ₤ 255 court cost to set aside a CCJ (March 2019), and you will require to attend a hearing. If you are on a low revenue, you may be able to get this free of charge using the EX160A form, which can also be completed online. We suggest you call us first if you are considering this option.
If you do not have an excellent argument to show why the CCJ should never have occurred, putting on set it apart is not likely to work. We advise getting further advice before you apply to set aside a CCJ.
Are you struggling to pay a CCJ?
If you are finding it tough to pay your CCJ or you are not exactly sure how much to offer towards repayment, we can assist.
Call us on 0203 318 0990 for debt advice and CCJ help in preparing your case or dealing with repayment under suitable debt plan ,in case if there are other creditors chasing you for repayment .