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County Court Judgments (CCJs)

11 February 2008

If you don’t keep up payments to an unsecured creditor, they can ask the County Court to issue a County Court Judgment (CCJ), ordering you to stick to a formalised payment plan.

A CCJ will stay on your credit file for 6 years, making it harder to get credit. However, the court will probably freeze interest on your debt, and the payments will reflect what you can actually afford. If you fall behind on your payments, your creditor can ask the court to take Enforcement Actions against you, such as:

A Warrant of Execution
You’ll be visited by bailiffs, who could ultimately take away your possessions so they can be sold to pay all / some of your debt. Note that:

• Bailiffs can’t take essential domestic items (e.g. the cooker, the fridge), children’s toys, anything you need for work, or anything that isn’t yours.

• If they’ve never been in your home in regard to this debt, bailiffs can’t enter your home without your permission unless you’ve left a door or window unlocked. But once they’ve been in your home, they are legally allowed to force entry on subsequent visits.

You can apply to suspend a warrant of execution and request a new payment plan by completing a form N245 and sending it to the court. There is an administration fee of £35.

An Attachment of Earnings (if you’re in paid employment)
Your creditor will be paid money taken out of your wages before you receive them. You will be given a chance to apply for a suspended order or to set the amount at a level you can afford. If the creditor is unhappy with your offer, the court will decide on a level of repayment that is fair to both sides.

A Charging Order (if you own a home)
This secures the debt against your property. Most creditors apply for a charging order to give them the security of knowing that if your house is sold their debt will be given priority and paid from the sale proceeds. However, if you do not keep up payments the creditor can ask the court for an order forcing the sale of your home. It is possible to defend or apply to suspend an Order for Sale – anyone in this position should seek specialist advice.

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