Having a County Court Judgement or CCJ released against you will have a serious impact on your credit ranking. This signifies that you have actually had severe difficulties repaying a loan or other form of credit, to the extent where your financial institution requires to take court action against you to attempt and recapture the debt.
If you get involved in financial obligations and can not come up with a repayment agreement, your creditor may decide that going after a CCJ is the only alternative. You will first become aware of it is when you get a ‘Claim Form’ through the mail. This is sent out by the county court. This document will set out the particulars of the claim, including who the creditor is and just how much they say you owe them.
If you were not aware of the personal financial obligation, for example if you moved away and lost contact with the lending institution, then paying back the full financial obligation now will stop procedures going any further. If you can’t eliminate the financial obligation, then you must submit an ‘Admissions Form’ which will also have been sent to you.
What is the admissions form?
The Admissions Form asks for details about your income and expenses, which the court will consider when hearing your case. The Admissions Form must be handed back within a certain amount of days from the postmark. If you intend to contest or safeguard the claim then you can apply to have the hearing delayed an additional 14 days in order to prepare your defense.
As soon as you’ve executed these actions and returned them to the court, there will be an easy hearing executed in private. You don’t have to show up at the hearing so long as you’ve entirely completed the required forms, or unless you wish to challenge elements of the claim.
At the hearing, the court will objectively go over the claim and the details you’ve provided. They will then decide about the amount of cash (if any) you owe, and how it should be paid back. It’s important to keep in mind that no one is being found ‘guilty’ or ‘innocent’ here. The court is simply seeking to fairly deal with a civil monetary dispute.
What happens next?
If the choice promotes the claim against you, then the court order or CCJ is provided. Even at this stage you can stop the damage to your credit record. You will have one month from the date of the court hearing to settle up the debt in full to stop the CCJ being put on record.
After a month, the CCJ will be entered upon to the Register of County Court Judgements. From there it will make its way onto your credit files held by the various credit reference agencies.
The existence of several CCJs on your credit file will effectively shut off most kinds of finance to you. This is because a number of loan providers will be really reluctant to offer credit to individuals in these situations. When, however, you’ve eliminated the debt, then the judgement will be marked as ‘complete’. This will not eliminate it from your record. It will be a lot less damaging to your credit value than an uncleared CCJ.
What to look out for
You may be lured by businesses promising to get rid of it and clean up your ranking if you have a CCJ on your file. This is only possible in a few cases. Sometimes, the CCJ is entered upon to your record by mistake, although you cleared the debt within the one month time frame. If this has happened then you can have it removed from your records.
The only other ways to have a CCJ removed is to show that there was something wrong with the method which the judgement was awarded. If, for instance, you didn’t receive the initial Claim Form, and you were uninformed of the proceedings, then you didn’t have the chance to defend yourself therefore the judgement is void.
In these situations, you can use to the court to ‘set aside’ the judgement and it will be eliminated from your file. The entire procedure would then begin once more with a new claim and hearing. Any effort to get a ‘set aside’ without an affordable argument could be viewed as wasting the court’s time. This is in addition to all the legal fees that the process would involve.