UK Credit Problems - CCJ

A CCJ or County Court Judgement is the term for a judgement made against a person or company for defaulting on debt. The judgement is passed in a County Court.

Genarally if a CCJ is paid in full within 30 days of the date of the judgement it will not appear on the credit register, however should a judgement be settled after that period it will be entered into the public record and it will affect your credit rating.

Who are likely to apply for CCJ's:

Creditors - This can be companies who provide you services like electricity, gas, water, internet connection through to retail outlets that have allowed you products on credit.
Lenders - This will be companies that have actually lent you money and credit card companies.
Local Authorities - Landlords, being in Arrears or Defaulting on rent repayments or not paying council tax bills.

The consequences of having a CCJ against you:

This CCJ will go on your credit file and will affect your credit rating. It will make it more difficult for you to get a credit card, loan, mortgage or any type of finance in the future. You will also incur costs for having a CCJ as you have to pay the creditors court costs.

The only benefit to you:

Your creditors will stop adding interest to the amount you currently owe them and the court will decide on a repayment plan. So long as you keep up the payments that the court decide on you should have no more problems with your creditors.

However, remember - If you don’t keep up these payments the creditor could call in the bailiffs and you will have a CCJ against your name which will adversely affect future claims for credit.