Anyone who has found themselves in the situation of having a CCJ lodged against them will know just how frightening and stressful the whole experience can be. The following will help to explain the process of how a CCJ is obtained and what it means to have one in your name. We offer loans for people with bad credit even if you have a ccj, arrears or defaults.
What is a CCJ?
CCJ’s, or County Court Judgements, are official sanctions that have been taken out against an individual who has been unable to pay off a debt or has maybe not kept to a loan agreement repayment schedule. Companies or individuals, known as creditors, who are owed money may make an application to the Court for a CCJ if a person has fallen behind on repayments on a loan or have not fully paid for any goods or services that they have been provided. The creditor has to lodge papers known as a claim with the Court, detailing how much they are owed from the individual or ‘defendant’. The Court will then send a number of papers and forms to the defendant, who must fill them in as soon as possible and return them to the Court within 14 days. [wdgpo_plusone]
What papers are sent to the defendant?
1. Claim Form: this will state who owes the money, how much is owed and details of the debt.
2. Admission form: this should be filled out by the defendant if they are not going to contest or argue against the claim.
3. Defence and Counterclaim Form: This should be completed by the defendant if there is a dispute or they do not agree with the claim made against them.
4. Acknowledgement of Service: this should only be used if extra time is needed to deal with the claim.
5. A booklet to explain the process is also included for information.
What happens after an Admission or Defence form has been returned?
The Court will look carefully at the forms submitted and will take all the information into consideration so it is very important that all the defendant’s financial details are as accurate as possible. The Court will then pass judgement and issue a CCJ that will detail how the debt should be paid off, unless it accepts a counterclaim or defence. The Court will make sure that the defendant will be able to manage the repayments and will only accept a realistic payment plan. It is also important to keep the Court informed if it is becoming difficult to keep to the agreement because it can always be reviewed. It is essential to stick to the agreement made by the Court otherwise the defendant risks further action being taken such as bailiffs being called to seize any valuable possessions.
What does a CCJ do to my credit rating?
CCJ’s must stay on a register for 6 years unless the debt is paid off within a month of the judgement. If the debt is paid off within the 6 years, it is marked as being ‘satisfied’. If the debt has not been paid off by the end of 6 years, it is marked as ‘unsatisfied’. This is where many people run into difficulties because even if a CCJ is ‘satisfied’, it still shows up and can scare new lenders off. We can redress this balance by helping you to rebuild your credit rating and we can offer loans ranging from £100 – £25,000. Just fill in the online form or phone us and we will be pleased to help.
Please note, these procedures apply in England and Wales. A similar system exists through the Sheriff Courts in Scotland.
