What is a County Court Judgment (CCJ)?     

A County Court Judgement is a legal order a creditor issue against a borrower who defaults. He may issue one against the person who shares unreliable payment behaviour. It is a part of the debt collection process. Through this, he requests the court to take action on the creditor’s behalf.

The borrower may receive the notice through a post. The person must respond to the legal notice and attend the court hearing. You must do so within 30 days of notice reception.

The hearing helps the creditor get justice against the pending payments. If found guilty, the court orders the person to clear the payments. He provides deadlines within which one must pay the dues.

How to respond to a CCJ order?

You can respond to a CCJ order by analysing the best possibilities according to your circumstances and dues:

1)   If the claim is right

Analyse the amount mentioned and the total amount that you owe in the credit report. If the amount mentioned is right, send acceptance. List the prospects to clear the dues in detail. For example, mention whether you will pay the part payment or the full. Additionally, inform the payment structure you prefer to pay the dues.

You can clear the payments through offline or online payments. If you need more money, get CCJ loans with no guarantor from a direct lender quickly. It allows you to get a specific sum despite CCJ status. You can get one without a third person with recurring income support.

Alongside payment proof, provide basic details like- income, living costs and other debts. Offer an amount that you can realistically pay. Offer an amount that you can realistically pay. The creditor and the court decide whether it is bearable.

2)   If the claim is wrong

Sometimes, the people you owe the money may ask for the wrong amount. Or you don’t owe the money at all. You can falsify the statements by replying accordingly. You may receive the CCJ in this situation due to:

• The debt is not your
• You don’t have contact for years
• The debt is older than 15 years (in that case, the creditor can’t take legal action)

Thus, you can defend the claim in such situations. You can do so by:

• Retain the “ defence and counterclaim” form

3)  You owe something but are not sure about the amount

You can submit a partial defence if you know you owe something but do not know the actual amount. In this situation, the due amount mentioned may seem wrong to you. In this case, you can act by:

4)  Completing N9A and N9B form

N9A- offer to pay the money you owe as a claimant.

N9B- To dispute all or a claim part. You can use it to make a counterclaim against the claimant.

Defending a claim with an N9B form can be a complicated and long process. You must file it within 14 days of the claim. It requires substantial proof. For example:

• You must provide detailed information to support your take.
• Apply for a meeting with the district judge at the local county court hearing.

However, if the defence rejects your plea, return N9B and pay the dues.

What if you ignore a CCJ notice?

If you choose to ignore a CCJ, it may prove troublesome for you. Here are the consequences you may suffer as a result of the same:

1. The bailiffs may visit your property and take assets amounting to the dues legally.
2. Order your bank to cut a specific amount monthly from income
3. Freeze your and the guarantor’s bank account (if you applied for a loan with one)
4. Charging order or making money by selling the property you own or the investments
5. Some may force you to file a bankruptcy if you owe over £10000 and don’t pay.
6. Suffer a sharp decline in credit score because of default, CCJ, penalties and violating court guidelines.

The best way to avoid this is by negotiating terms with the loan provider. Request him to arrange a specific amount you can comfortably pay to clear the dues. The mutual coordination protects your credit score from declining further and restricts bankruptcy and asset seizure activities.

However, CCJ, penalties, and increasing interest rates on rollovers affect credit scores. It restricts you from qualifying for affordable credit cards and loans. Precisely, it proves the greatest obstacle to the financial journey. Thus, boosting your credit rating is a must.

How to increase your credit score with a CCJ mark?

A credit score is a 3-digit number that credit agencies provide. They analyse payments, income, employment history, debts, and credit history length to decide the score. You get a score from 0-999 according to your financial habits and liabilities. The interest rates and total loan amount you pay depend largely on the credit rating.

According to statistics, “your credit score falls by 250 points if you default on loan repayments.” With a low credit score, you may struggle to spot a favourable credit card, quick loan or even discounts and benefits.

A CCJ stays on your credit report for 6 years. It is regardless of whether or not you repay the debt. However, working on other aspects may boost your credit score:

1.    Pay the CCJ dues within a month

However, it is difficult to remove a CCJ mark, try once. If you clear the dues within a month, you may remove it. It is a bleak possibility as the total repayable amount exceeds the basic monthly income sometimes. Additionally, you can only get the CCJ removed within a month if the judgment is just 30 days old.

2.   Avoid applying for new credit cards

Ensure disciplined financial moves until you clear the dues. Avoid applying for any hefty interest-rate credit cards. It may affect your credit score. Still, if you must purchase a big-ticket item, use personal loans. Apart from helping you fetch better interest, it boosts credit. Yes, you can improve your credit score by paying the dues timely. Regular payments reveal your effort towards loan completion and generate credibility.

3.  Increase your income

Employment journey helps create a dense and reliable credit history. Individuals with high incomes get affordable loans compared to low credit scores. It generates reliability of timely payments and hence improves credit score.

Bottom line

Thus, a County Court Judgment is a legal order against a borrower who defaults. A loan provider files one against the borrower to retrieve the dues. The borrower must reply with a suitable answer and attend court hearings. A CCJ stays for 6 years on the credit report despite clearance. It impacts the credit score. However, notifying the credit agencies helps qualify for credits. The above strategies may help you boost credit despite the CCJ.

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