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Managing CCJ's
If talks with your creditors have broken down and missed payments have occurred on loans or credit agreements the creditor may issue a County Court Judgment (CCJ). If this is the case the courts will have decided how much you should pay each month and missing payments arranged through the courts could lead to further charges and action being taken against you and further bad credit being listed on your credit file.
You can alter the payments by applying to the courts if you discover the new payments are not affordable. We have listed below a brief guide to CCJ's and what you can do to help yourself.
County Court Claim - what's it for?
Someone you owe money to (a 'creditor') can take a County Court action against you to claim the money. If you pay the amount outstanding, you can avoid a hearing or judgment. If not, there'll be a simple court hearing in private. You can attend if you wish, or just send the information the court asks for by post.
The court doesn't find anyone 'guilty' or 'innocent'. It looks at the facts and decides whether you owe any money, and if so, how you should repay it.
The court will send you a 'Claim Form', showing how much the creditor says you owe them, and the details of the claim (though these details can be sent separately up to 14 days later). This form gives you the opportunity to explain your situation to the court.
Please note:
Under Scottish law claims are dealt differently - by the Sheriff Court
Replying to a Claim Form
You'll receive an Admission Form with the Claim Form, asking you about your income and outgoings. On the form you can make an offer to repay the debt (or a lower amount if you think you owe less than the creditor claims).
If you don't make an offer and the court decides against you, it may say you must pay either the full amount in one payment or by monthly installments.
You have 16 days from the date of the postmark to send the form back to the court. Or you can submit an 'Acknowledgement of Service' or a 'Defence Form', depending on how you want to proceed - follow the link below to find out more about these forms.
County Court Judgment - (CCJ)
After the court hearing, the court may issue an order saying you must repay the debt. This order is called a CCJ and will either be for the amount agreed between you and your creditor or, if you can't agree, a payment set by the court.
If you have judgments from more than one creditor, the court can combine your debts and make an 'administration order' - saying you must make a single payment every month to be shared by all your creditors.
I have a CCJ who do I pay?
You pay the creditor who made the claim against you, or their solicitor or representative who will accept your payments on their behalf.
paying my judgment - what do I do? (PDF -opens new window)
What to do if you can't pay the CCJ
If you pay nothing, or don't keep up with the payments, the creditor can ask the court to take steps to make you pay, in which case you may have to pay more costs. If you genuinely can't pay, even in stages, you can ask the court to:
- change the amount of the regular payments
- suspend the order until you can afford to pay
Information about what to do if you can't pay (PDF - opens new window)
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