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What is a CCJ and how does it affect me?

A County Court Judgment (or CCJ) is a type of court order that can be issued against you if you fail to repay your debts. Usually this happens if you fall behind on payments and the creditor has tried but been unable to contact you to work out a repayment plan. The creditor can apply to the courts for a ruling saying you have to pay the money back.

CCJs are used in England, Wales and Northern Ireland. In Scotland, the equivalent is a Decree. 

Also, the CCJ may order you to pay back all of the money at once.

If you’re formally issued with a CCJ, it will negatively impact your credit score, making it harder to get loans, mortgages, credit cards or even mobile phone contracts. And if you can get credit, it's likely you won't be able to secure the best interest rates.

Is legal action already taking place?

No, we are not taking legal action yet. We’d like to work with you to try and find an affordable solution for you.

If you do continue to ignore us, we will instruct our solicitors to start the process by applying to the court. Before this instance though, we have plenty of solutions that can help you manage your Cabot account.

Manage your account online

What does ‘enforcing a CCJ’ mean?

In the UK, the creditor has several options available. These can include:

1. Issue a Warrant of Control (Using a court bailiff)

A creditor can apply to the court for a bailiff to collect the debt. If the court agrees, it will issue a ‘warrant of control’, and bailiffs can collect money or seize goods from your home to be sold to pay off your debt.

You’ll be given seven days’ notice to give you time to contact your creditor to arrange payment. If your offer is accepted, the warrant will be suspended, but if you miss future payments the creditor can request that the warrant is reissued.

2. An attachment of earnings order

An attachment of earnings order is often sought when a debtor is struggling or refusing to repay a debt they owe.

This is when a court orders that the money you owe is deducted from your wages by your employer and paid directly to your creditor, typically over several months.

The court will send you documents that you must respond to to avoid further legal action.

If the amount deducted from your wages is likely to leave you unable to pay your bills, contact a fee-free debt adviser such as StepChange or PayPlan who can give you advice.

3. A charging order

An alternative to an attachment of earnings order – if you own a property, your creditor can ask for a charging order to be secured against it in order to reclaim a debt.

This means that when you decide to sell your home, your creditor will be entitled to seek payment of the debt from the proceeds of the sale once it has been completed.

However, if a debt is secured against your property, your creditor can still ask you to make payments toward the debt.