A County Court Judgement (CCJ) is an Order from the Court stating that you owe a debt and that it must be repaid within a particular time. You may be required to pay the whole outstanding debt immediately or by monthly instalments.
If a CCJ has been issued against you this could be to your advantage as it will force the creditor to accept affordable monthly payments towards your debt and may also mean that no further interest can be added. However if you ignore a CCJ claim you may be required to pay an amount that you cannot afford . It will also affect your credit rating and could have significant implications if you are a home owner.
Can interest be added to a CCJ?
Once a CCJ has been issued against you if you are not able to repay the debt immediately you will normally have to repay it based on monthly instalments. Where this is the case it is very important to understand if additional interest can be added and how this will affect the time it will take to repay the debt. Whether or not interest can be added will depend largely on the type of debt you owe. A detailed explanation of which debts will attract additional interest and how it is possible to stop this is given here.
How can I change a CCJ payment?
If a CCJ has been issued against you which requires you to repay a debt in full or based on monthly instalments that you cannot afford you must not just ignore it. If you do so then the person who is owed the money may decide to take further collection action against you. What you will need to do is apply to have the CCJ amended to change the payment terms. Detailed information about how to do this is provided here.
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How do I complete a CCJ Admission form?
If a an application for a CCJ is made against you and you agree that the debt is owed then you will need to complete and return an Admission Form N9A. This form gives you the opportunity to state your financial circumstances and make a monthly repayment offer based on an amount that you can afford. It is extremely important to complete this form correctly or a CCJ could be issued against you based on payment instalments that you cannot afford. A step by step guide on how to complete this document is available here.
How will a CCJ affect me?
Once a CCJ is issued against you it will affect you in different ways depending on your circumstances. One of the key things you need to understand is that your credit rating will be significantly affected. It is also extremely important to be aware of the affects of a CCJ if you are a home owner. All the information about what getting a CCJ will mean for you is available here.
What do I do if I receive a CCJ claim?
If a creditor decides to apply for a CCJ against you, you will receive some documentation in the post which you must complete and return. You will be given the option to simply pay the debt immediately which will prevent the CCJ from being issued. If you are unable to do this then you can apply for a time order which will allow you to repay the debt based on reasonable monthly instalments. You also have the option to disagree with the claim and defend against it. More details about all of these options are available here.
What can I do if I cannot pay my CCJ?
If you have received a CCJ that you are unable to pay then there are a number of options that you can consider. The first is to apply to the Court to be able to pay the debt that you owe based on monthly payments that you can afford. Alternatively you could consider using a debt management solution within which it is possible to include a CCJ debt. Detailed information about these options is available here.