What is a CCJ?

A County Court Judgment (CCJ) refers to a court order that may be registered against you if you have outstanding debts and your creditor doubts they will receive the money owed without resorting to legal action.

In accordance with the Consumer Credit Act, you must receive adequate notice of a potential CCJ before any action is taken.

Typically, this comes in the form of a letter detailing the steps you can follow to address the issue and clarifying the consequences of inaction.

Upon receiving a CCJ warning letter, you have a 14-day window to respond, indicating whether you plan to pay the specified amount or contest the order. Failing to respond within this period may result in the court imposing a repayment plan that could be unmanageable or even requiring you to repay the entire debt immediately.

At IVA Helpline, we understand the main concerns surrounding CCJs, such as the problems they pose, the pain points they create, and the solutions available.

Will a CCJ appear on my credit file?

Similar to an Individual Voluntary Arrangement (IVA), a County Court Judgment (CCJ) remains on your credit file for six years starting from the date it was granted, regardless of whether it has been partially or fully repaid during this period.

This situation may pose challenges when attempting to secure additional credit, such as loans or mortgages. Furthermore, your CCJ will be recorded in a public register called the Register of Judgments, Orders and Fines for six years. Although this information is readily accessible to the public, it is typically only examined by financial industry professionals, such as banks and lenders, when evaluating your credit application.

If you pay the entire amount specified within one month of receiving a CCJ, it will be removed from your credit file and the Register of Judgments, Orders and Fines.

If this is not the case, it is essential that you reach out to the appropriate credit reference agencies and request an update to your record.

How will an IVA affect my CCJ?

Upon entering an IVA, your existing CCJ will not be dismissed; however, it will be neutralised by the IVA. Additionally, it might be feasible to halt any ongoing CCJs when initiating an IVA, preventing you from acquiring a new CCJ.

Once your IVA is approved, the creditor who issued the CCJ will be barred from contacting you or pursuing further actions to reclaim the outstanding debt, as you will be making payments through the IVA.

If you have concerns about the impact of your IVA on your CCJ, we recommend reaching out to a debt adviser or your Insolvency Practitioner (IP) for personalised debt advice.

Can I get an IVA if I have had a CCJ in the past?

Even with a past CCJ on your record, you are not prevented from pursuing an IVA to assist with repaying your unsecured debt. Be aware, though, that if your credit file still contains the CCJ, your IVA will appear as a separate entry on your credit report, potentially causing additional harm to your credit score.