First, we should know what exactly is the CCJ, it is a County Court Judgement. This is a court order that can be registered against someone who fails to pay the debt. It can mainly be seen in England, Wales, and Northern Ireland.
CCJ will directly deal with the debtor. And, CCJ can help you to recover the money. If the debtor ignores the CCJ then it can affect the credit rating negatively. So, the debtor is advised to respond and pay the debt.
The CCJ is mainly used for two main purposes – First, collect the debt from the target, and second is to make contact between individuals or companies. Though all types of debt are not covered by CCJ, like council tax debt subject to different court processes. So, let’s get to know how long is a CCJ enforceable.
How to get a CCJ to collect the money from the debtor?
This is mainly for the moneylender if the debtor is unable to make the payment. The one who owed money can take court action. You have to ask the court to collect payment from the debtor in order to get CCJ on that person. You can get CCJ on someone whether the debtor is an individual or a business owner.
Further, you can say that it is a process to take someone to a small claim court. Before the CCJ starts the process you need to pay them a certain amount. You can also make the claim online if it is a fixed amount.
There can be a situation where you have to attain a court hearing if the debtor denies the responses. And, if even after judgment the debtor is not paying back then you can ask the court to collect the money by enforcement agents.
After everything is sorted and after receiving the money, the first thing that you need to do is to inform the court. Either by updating your claim or online or through the paperwork. But, how long is a CCJ enforceable?
What you can do if you receive a CCJ Claim Letter?
First, the creditor will send you a warning letter or maybe a default notice, all of a sudden they can take CCJ. According to the consumer act, the creditor needs to send a default notice before taking any action at least 14 days before.
In this notice, the time period, when you will have CCJ against you, will be mentioned. All the details about how you will respond and what action will be taken if you don’t pay the debt, everything will be mentioned. You can also talk to the free debt advice service if you receive a CCJ. And, if you are struggling with the money then you can talk to them and take advice to sort out the problem.
How will the debtor reply to the claim?
When the debtor receives the letter he has only 14 days to reply to that claim. So, the debtor is advised not to ignore the claim. You have to fill the reply form, where all the details about your income and expenditure have to be mentioned. This form will be presented in court and will show how much you have to pay.
You can also take other ways like you can file a defense if you disagree with the amount the creditor has mentioned. You can also take advice from a debt adviser and you have to prepare for this defense within these 14 days.
What will be the judgment of the court?
There are two ways the court can issue the judgment:
- Installment can also be a way to pay the debt
- The debtor need to pay the debt
If the debtor has admitted the claim and is ready to pay the monthly payment, then you have received the judgment by installment. But, the court will set the monthly repayment rate as you have provided in the form. As already mentioned, it is very important to respond to the claim.
If you don’t then the court will not take your circumstances into account. They will enter the judgment against you and this is called judgment in default. But, if the debt is more than you can afford, then you can ask the court to look into the matter again.
How long is a CCJ enforceable?
The CCJ normally lasts for six years from the day of judgment. It will remain on record, but if the debtor pays it within one month it will be removed. But, if somehow the payment is not made within that one month, then the CCJ will remain active for six years on the debtor’s credit record. It will have a great impact on the credit rating of the debtor.
The debtor will find it harder to borrow money either for getting a mortgage or anything else, unless and until the six years time period is over. The record won’t be removed even after paying the debt within the given time period, but the debt is satisfied and will be amended in the record. So, how long is a CCJ enforceable? The CCJ can be pursued by the collector or else it remains active during a six years period.
Time limit on CCJ
If you have managed to get a CCJ either on a person or business who is the debtor, it will be for six years not more than that. The creditor doesn’t have unlimited time to collect the debt. Within these six years, you have to try and collect the money from the debtor.
According to the limitation act the creditor can take CCJ for six years from the date of judgment. If you need more time then you need to ask for the permission of the court to continue further. In another case, if you want to collect the money that is over six years old, then you need to take the permission of the court to pursue the enforcement action.
How can you remove the CCJ from the record?
The CCJ can be removed from all the records, from the register of order, judgment, and fine, if and only if the debtor pays the full debt within the first month. A CCJ cannot be removed unless and until the full debt is paid within the specified time. And, also the court should be informed that the CCJ is effective.
Under certain circumstances, the debtor can also appeal to the court to set aside the CCJ. This can be done only if the debtor has a good enough reason – Like, if the address was wrong, so the claim was not sent to the right one or the details in the CCJ is incorrect, etc.
But, the debtor has to pay the court fee and also has to attain the hearing to give a proper explanation. If the court finds that the reason of the debtor is enough, then the debt will not be enforceable and the CCJ will be removed.
This entire process will take 3-4 weeks. But, if the court finds that the reason is not sufficient enough then the CCJ will remain on file for 6 years. And, the court will order the debtor to make full payment.
Different Rules that the CCJ follows
Still curious how long is a CCJ enforceable? If even after receiving the CCJ you don’t keep to the terms, then the creditor can ask the court to enforce the debt. There are three main ways this can be done:
The creditor can take bailiff action
The creditor if wants can apply for the bailiff to the county court to collect the debt from the debtor. It can also issue a warrant of execution, but the court has to grant permission for this. This grant gives the power to the bailiff to visit the home or business and to collect the money or even to seize goods against the debt.
You can also request the court not to seize your goods and let you pay back the money, but at an affordable rate. You can also take help from a free advisor about this matter.
The second is charging order
If you have a property the creditor can ask for a charging order. In this case, the debt will have to mortgage the property. So, it is very important to pay the debt. If the debt is not paid on time then the debtor can lose his property. You can also take advice from a different debt adviser.
An attachment of the earnings order
In this case, the attachment of earnings order is the process where the creditor will ask to deduct the money from the debtor’s wages. This can create problems for the debtor. As already mentioned, you can always take help from debt advice if you face any difficulties.
So, this was all about CCJ and how long it is enforceable. All the details from starting to end, everything is given. It will be very helpful for you to get to know more about CCJ. if you are a debtor, then this information will help you a lot.
Make sure you repay the debt on time to the creditor. If you don’t, then it can hamper your lifestyle. Also, you are advised not to ignore CCJ. It won’t be a good option for you. You must reply to the claim, and if you are facing any problem regarding the claim you can go to court. If you want more information on how long is a CCJ enforceable, then you can continue your research.