A county court judgement (CCJ) is a court order that requires an individual or business to pay a debt to a creditor. A CCJ is typically issued when a creditor has tried to recover a debt through other means, such as sending a letter demanding payment or contacting the debtor by phone, and has been unsuccessful.
If a creditor decides to pursue a CCJ, they will need to apply to the county court for a judgement. If the court grants the judgement, it will set out the amount of the debt and the date by which it must be paid. The debtor will be notified of the judgement and will have a certain period of time to pay the debt. If the debt is not paid, the creditor can take further action to enforce the judgement, such as seizing the debtor’s assets or obtaining an order for the debtor’s wages to be garnished.
Details of the debt, and the County Court Judgement, will be given to the Credit Reference Agencies (CRA), who provide the data for credit reports and credit scores.
CCJs are a matter of public record and will have a negative impact on an individual’s credit rating. They will appear on a credit report and can make it more difficult for an individual to obtain credit in the future. It is important to try to resolve any outstanding debts as soon as possible to avoid the possibility of a CCJ being issued against them.
A mortgage applicant with a CCJ registered against them would be classed as “adverse” and their options for borrowing will be more limited. High street mortgage lenders are unlikely to accept applicants who have a CCJ but solutions can be found from specialist bad credit mortgage lenders and banks offering subprime mortgages.
