County court judgment
In England and Wales (Scotland has its own legal system), county court judgments (CCJs) are legal decisions handed down by county courts. Judgments for monetary sums are entered on the Register of County Court Judgments, which is checked by credit reference agencies to assess the credit-worthiness of individuals.
If the debtor continues to default on a CCJ, the creditor may apply for a charging order, which would secure the debt on a property. Creditors can also apply for an attachment of earnings which would oblige the debtor's employer to deduct monies from their salary and send them to the court. A Third Party Debt order would oblige a third party who holds money belonging to the debtor (for example a bank) to pay the debt. It is also possible to have the court appoint a county court bailiff to collect the debt. A bailiff is an official of the court and has the power to seize goods and sell them at auction to settle a debt.
Once a CCJ has been entered it is recorded by credit reference agencies, impacting negatively on an individual's credit rating and making it very difficult to obtain credit or finance for at least six years except possibly through facilities designed for the sub-prime credit sector. These include things like payday loans.
If regular payments to the court are being made this is recorded on the credit file and goes some way to lessen the negative credit rating impact. Once the full amount owed is repaid the CCJ is marked as 'satisfied' but remains on file. The subject of a CCJ which is satisfied within one calendar month of being recorded can ask the agency to remove the entry altogether.
External links
- County court judgments for debt (GOV.UK, England and Wales)
- How a CCJ affects your credit rating
- CCJ's explained: How to avoid years of inconvenience