What is a CCJ and what happens if you get one?

A CCJ is a civil court order, not a criminal matter. It means a court has decided you owe the money, which gives the creditor legal ways to collect it if you do not pay. This guide covers England and Wales. Scotland and Northern Ireland have separate court systems, covered briefly at the end.

How does someone end up with a CCJ?

A CCJ is the end of a process that usually takes months, and there are chances to stop it at each step.

1. Letter of Claim. Before going to court, a business must send you a Letter of Claim with a reply form. You have 30 days from the date on the letter to reply. If you say you are getting debt advice, the creditor should not start court action for at least 30 days after it receives your reply.
2. Court claim. The creditor issues a claim, often through the Money Claim Online service. You must respond by the date given, and you can admit the debt, dispute it, or do both for different parts. See what to do if you receive a Money Claim Online claim form.
3. Judgment. The court makes a judgment if you do not respond in time (a default judgment), if you admit you owe the money, or if the creditor wins at a hearing.
4. Enforcement. If you do not pay as the judgment orders, the creditor can ask the court to make you pay.

A default judgment can be made without any hearing once the time to respond has passed. Responding, even just to admit the debt and offer what you can afford, keeps you involved in setting the payments.

What does a CCJ order you to pay?

The judgment sets out how much you owe, who to pay, how to pay (in one go or by instalments) and the deadline. If it does not give a different date or set instalments, you must pay within 14 days of the date of the judgment.

How the instalments are set depends on how the judgment was made:

• If you admitted the claim and asked for time to pay, the judgment follows any payment plan you agreed with the creditor. If the creditor did not accept your offer, the court decides the rate using your statement of income, spending, assets and debts. For amounts up to £50,000 a court officer can decide without a hearing, and either you or the creditor can ask a judge to look at it again within 14 days.
• If the judgment was made in default, because you did not respond, the judgment is entered at the creditor’s request without the court hearing from you, so the payment terms have not taken your budget into account. You can still ask the court to change them afterwards (see below).

What happens if you do not pay?

If you miss payments, or do not pay by the date in the judgment, the creditor can go back to court to enforce it. GOV.UK lists these options:

Each of these needs a separate application to the court. A creditor with a judgment of £600 or more can also transfer it to the High Court, where High Court enforcement officers collect it and charge higher fees, unless the judgment is on a regulated consumer credit agreement. A creditor needs the court’s permission to send bailiffs if the judgment is 6 years old or more, and cannot enforce at all while you are in Breathing Space.

How does a CCJ affect you?

The judgment is entered on the Register of Judgments, Orders and Fines, which anyone can search, and the credit reference agencies copy it onto your credit file. It stays for 6 years from the judgment date unless you pay in full within one calendar month, in which case it is removed. If you pay later, it is marked “satisfied” but stays for the full 6 years. Our guide to satisfied and cancelled CCJs explains how to get the register updated once you have paid.

While it shows, many lenders will turn you down or offer higher rates, and it can affect anything that involves a credit check, such as some tenancies and phone contracts. For the detail of the 6-year rule and what happens to the debt afterwards, see how long a CCJ lasts. If you are not sure whether you have a judgment, you can check the register.

What if you cannot afford the payments?

Act before enforcement starts.

• Before judgment, you can admit the claim and offer instalments. The court looks at your income and spending, not just what the creditor wants.
• After judgment, you can ask the court to lower the instalments on form N245. The fee is £16, and the court decides the new amount.
• If you have several debts, a formal solution may deal with the judgment alongside the rest. A CCJ debt can usually be included in an IVA, a debt relief order or bankruptcy, and a Breathing Space pauses enforcement while it lasts. If your total debts are under £5,000, owed to at least 2 creditors, and you have a CCJ, you can ask the county court for an administration order, which means one monthly payment to the court.

Each option has costs, conditions and long-term effects. The debt solutions comparison sets them side by side, and free, impartial advice is available from MoneyHelper, StepChange, Citizens Advice and National Debtline: see where to get free debt advice.

Can a CCJ be removed?

Only in limited cases: if you pay in full within one calendar month of the judgment, if the court sets the judgment aside (for example because the claim went to an old address, or you did not owe the money), or if the register entry is simply wrong. Paying after the first month does not remove it. See how to remove or set aside a CCJ for the grounds, forms and fees.

What about Scotland and Northern Ireland?

They have separate court systems. Scotland does not have CCJs: a creditor gets a decree from the sheriff court, and enforcement, called diligence, is carried out by sheriff officers. Northern Ireland has its own courts and enforcement rules. Judgments and decrees from both are recorded on registers kept by Registry Trust, so they can also appear on your credit file. Get advice from a service that covers where you live.

What to do next

1. If you have a Letter of Claim or a claim form, reply by the deadline. Ignoring a claim can lead straight to a judgment.
2. If you already have a judgment, check its date, the amount and the payment terms, and pay the creditor as ordered if you can.
3. If you cannot keep up, get free debt advice before the creditor enforces, and ask about form N245 or a debt solution.
4. For other court papers and letters, see our debt problems hub.