What exactly is a CCJ, why is it granted and how do you react to it? If you or your company receives one, it is a threat that needs to be handled quickly and decisively because failure to do so can have serious consequences. So, if you find it difficult to repay it, you should immediately seek the help of a professional to manage personal and business debt.
What exactly is a CCJ and how long does it stay on your credit report? In this comprehensive tutorial, we will address these questions as well as others.
What is a Country Court Judgment? And what is its process?
A county court judgment is a court order asking a debtor to pay a creditor the money they owe. Unless you pay the full amount in one month, the CCJ is entered in the Register of Judgments, Orders and Fines (Register) for six years. Paying off debt early can make it easier to get credit or a loan, avoid being rejected for credit altogether, or avoid paying high interest rates.
Before submitting an application for CCJ, the creditor must send the debtor a letter (also known as a default notice or pre-action letter) informing them that legal action may be taken if the unpaid balance is not returned to the minimum. 14 days.
When the creditor has filed a suit in the county court the following shall be served on the debtor:
- Claim Form: This outlines the amount of debt being claimed along with any applicable interest.
- A response package, which includes an acknowledgment of service form, an admission form (to identify that payment is due), and a defence form (to dispute a claim) (i.e. to confirm receipt).
Within 14 days of receiving these forms, a response is required; otherwise, a default judgement (CCJ) will be rendered.
How to respond to a Country Court Judgment?
The following are the primary options for contesting a county court judgement:
- Pay the claim completely (including any interest and fees)
- Ask to pay the claim in instalments; if the creditor refuses, the court will need to make a decision.
- contest the assertion or the debt
In the absence of a challenge to the claim, a CCJ will be entered in the Register.
What is a Bailiff?
A bailiff, also known as an “enforcement agent,” is a person authorised by law to act on behalf of the court to collect unpaid debts, seize property, or evict a tenant. Four different types of bailiffs exist:
- Personal Bailiff
These bailiffs may work for themselves, for a private company or for another organisation. Council tax back taxes and unpaid parking tickets are usually collected from local governments. Also, they chase money owed to HMRC.
- Bailiff for the County Court
To collect unpaid County Court Judgments (CCJ), these bailiffs are employed directly by the County Court and are subject to strict rules. To get Bailiff advice in the UK go for Bailiff Help Now.
When do you indulge in bailiff advice?
The next stage is often to issue instructions to High Court Enforcement Officers (HCEO), who are employed by private licensed businesses, or county court bailiffs who are employed directly by the court. They can visit a debtor’s residence or place of business to collect a debt, or seize assets armed with a warrant or writ of control.
While bailiffs and HCEOs may be successful, there are many reasons why they may not be able to collect a debt. There is no way to find any assets that can be sold and the debtor can simply choose not to pay. It can be especially challenging to find specific people. Businesses can use a variety of strategies, such as having multiple companies to trade and retain assets to avoid being held liable for debt. If you want bailiff help in the UK contact Bailiff Help Now.
A county court judgement, or CCJ, is a court order requiring payment of a debt. If you don’t pay it off within a month, it will be visible to the public and remain on your credit report for six years. If it is not paid, there may be serious legal consequences.