CCJs explained (UK)

What is a CCJ?

A CCJ is a type of court order in England, Wales and Northern Ireland that states you must repay a debt. It confirms that a creditor has taken legal action and the court has decided you owe the money. In Scotland, a similar process is called a decree.

Having a CCJ can seriously affect your credit file and may make it harder to obtain credit in the future. It will also appear on a public register unless you pay it within a set time.

How CCJs are issued

The process usually follows these steps:

1. Letter of claim: Your creditor sends a letter outlining the debt and giving you time to respond.
2. Claim form: If you don’t come to an arrangement, the creditor may issue a claim via the County Court. You’ll receive a form asking for your response.
3. Court decision: If you admit the debt or don’t respond, the court will decide how much you owe and what you should pay each month.
4. CCJ issued: Once the order is made, you must pay as instructed. If you pay within 30 days, the judgment will not appear on the public register.

Effects of a CCJ

Receiving a CCJ can have significant implications:

• Your credit file will show the judgment for six years, affecting your ability to borrow.
• If you don’t keep to the payment terms, creditors could use further enforcement methods, such as bailiffs, attachment of earnings or charging orders.
• You may find it harder to get a mortgage, tenancy or even some jobs while the CCJ is active.
• The judgment will be recorded on the Register of Judgments, Orders and Fines, unless you pay the full amount within 30 days.

Options after receiving a CCJ

If you receive a CCJ claim, respond within the deadline. You can:

• Pay in full within 30 days: The judgment will be removed from the public register.
• Offer a repayment plan: Fill in the admission form with your financial details to propose affordable payments.
• Dispute the claim: If you think you don’t owe the debt or the amount is wrong, you can defend the claim, but be sure to seek legal advice.
• Apply to set aside: In limited circumstances you can ask the court to cancel the CCJ, for example if the claim form did not reach you. You usually need a good reason and may have to pay a fee.

If you’re struggling to pay or unsure about your options, contact a free debt advice charity or solicitor for guidance.

Sources

• GOV.UK – County Court judgments for debt
• StepChange – CCJs explained
• Citizens Advice – County Court judgments