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The Initial Paperwork

CCJ’s are not instant actions, anyone applying for one against you must follow a number of steps according to the law. If a creditor starts proceedings towards obtaining a CCJ against you, first you will receive Claim Forms’ from the Court in the post. If you’re able to repay the debt in full there and then, this ends the proceedings.

You can see the amount to pay as Claim Forms always include how much money the creditor claims you owe. On the envelope it comes in, look for the postmark – it’s essential to complete and return the forms within 16 days of it.

In the envelope, you should find an admission form to provide a frank disclosure of your income versus your spending. Here you also make an offer of regular repayments at a level you are likely to be able to manage on an ongoing basis. You can get free, confidential advice from our team to help you perhaps formulate a realistic proposal. The form is returned to the creditor, not the court - the correct address should be on the form.

If You Believe You Have An Acceptable Defence

If you want to mount a defence, you will need to use the 'Acknowledgement of Service' ('defence form') and send it directly to the Court. You are advised to obtain independent expert debt help to support you through this process.

What Happens Next?

If you haven’t returned the form on time, a default Judgement is automatically issued against you. You are ordered to repay all the debt as an immediate lump sum. If you can’t pay, you have to apply to the court to pay in monthly amounts.

In every instance where the court is satisfied you owe the money, a repayment order of some type is created. This may be the one you proposed or one from the court. If you return the form but make no repayment offer, the court will impose one – either a lump sum or monthly instalments. Repayments are made to the creditor or their authorised agent.

If you cannot afford the repayment amounts, write to the county court within 14 days of the CJJ being passed. You’ll need your case number, a document explaining your income and spending and personal budget and rationale for your difficulties in meeting the order. You may be provided with a hearing to attend at court. In some cases with total debts of less than £5k, an ‘Administration Order’ is made, combining combine multiple debt payments into one single monthly payment.

Once CCJ’s are In Force

They are recorded in the Register of County Court Judgements, and will be available for creditors to view as they feature on your credit file. This will adversely affect any new credit applications. It is however, possible to avoid entry on the Register if you can pay the full amount within one month of the Judgement.

If you believe you have a credible reason to disagree with a CCJ, you can request the court ‘set it aside’ – meaning the process begins all over again, right back to completing the Claim Forms. The entry comes off the Register pending the new Judgement. There must be a sensible, serious reason for your submission – you could otherwise be accused of wasting court time, which can incur a fine or even a custodial sentence. It is therefore recommended to obtain professional advice before attempting this action.

If You’re Unable to Pay

Quite simply, you must take steps to begin to manage the situation. If you choose not to, the creditor can request the court takes further action, for which you will then owe the associated costs as well as the original debt. You can submit form N245 requesting the court amend your repayment amounts, or form N244 requesting the court suspend them until such time as you’re able to pay. Click here for the HM Court Service’s online forms service.

If you have received a CCJ Claim Form, or need any other aspect of debt advice, contact our expert team, for free, professional advice whatever your circumstances. Using our services through each step of the process of County Court Judgements can provide you with support and sound advice.