County Court Judgments (CCJ)

If you owe money to a creditor, they may take the matter to court and ask the court to set a judgement in place in order to recover that money. If you have debt problems, and you get to the stage where Court Procedures have been started, then go to your local Citizens Advice Bureau or Local Authority Debt Counselling Service for advice. They are experts at helping you fill in the forms for County Courts, and will reassure you about procedure.

Pros and Cons of County Court Judgments

Pros

• The Court is likely to allow you pay a monthly amount which you can afford. This is why an accurate and realistic statement of your income and essential outgoings is so important.
• The Court will probably stop interest being charged on credit agreements under £5,000. However, if you owe more, the creditor can get the Court to allow them to charge interest.
• The creditors cannot harass you during the period the matter is in the hands of the Courts. If they do, you should report them to the Court.

Cons

• CCJs are recorded on a register and passed to credit agencies. This will make it difficult for you to get credit in the future.
• Court costs will be added to your debt.
• If you don't pay the monthly amount ordered by the Court, further action will be taken. It is essential to keep up the payments ordered by the Court if you possibly can.