How can I remove a CCJ?

A County Court Judgment, often called a CCJ, is a type of court order in the UK. If you owe money and fail to pay it back, a creditor might go to court to get a CCJ against you. This is not just a matter of concern for individuals. Businesses should also be aware of CCJs, as they can affect credit score and borrowing ability. To learn more about a CCJ, read our guide: What is a CCJ?

How can I pay off a CCJ?

Do I have to pay a CCJ in full?

Once you have a CCJ against you, it's essential to take action to settle the debt. Payment options and timeframes can vary depending on your financial situation and the agreement you reach with the creditor. Here are some common payment options:

  • Full payment: Paying the entire amount owed in one go can result in the quickest resolution.
  • Payment plan: If you can't pay the full amount right away, you can set up a payment plan with the creditor. This allows you to pay off the debt in instalments over an agreed-upon period.
  • Reduced settlement: Sometimes, creditors may agree to let you pay less than the full amount of your debt. However, this may appear on your credit file as 'partially satisfied', which could still impact your credit rating.

The terms you agree upon with the creditor typically determine the timeframe for making payments. It's crucial to stick to these terms to avoid further legal action.

How can I get a certificate of satisfaction?

Once you've paid the CCJ in full, you can apply for a Certificate of Satisfaction from the court. This confirms that you have settled the debt. The Registry Trust, which maintains the official record of CCJs, will update the status to 'Satisfied' upon confirmation from the court. To obtain a Certificate of Satisfaction, follow these steps:

  1. Contact the court: Contact the court where the CCJ was issued to request a Certificate of Satisfaction.
  2. Provide proof of payment: You may need to show evidence like bank statements or receipts. This will prove that you have paid the full amount.
  3. Pay any associated fees: There may be a fee associated with obtaining the certificate.

Having a Certificate of Satisfaction is important. It shows that you have resolved the CCJ. This can help improve your credit score over time. Make sure to keep this document in a safe place for future reference.

How can I remove a CCJ?

Can I remove a CCJ if I pay it?

Yes. There are legitimate reasons for seeking the removal or setting aside of a CCJ. While it's not a straightforward process, the following are some grounds upon which you can pursue removal:

  • Mistaken identity: If the CCJ was issued against you by mistake, you can set it aside.
  • Procedural errors: If there were major mistakes in the legal process that led to the CCJ, you can challenge it. This includes issues like improper service of the claim or not following the right procedures.
  • Payment made: If you pay the full amount within one month of the judgment date, you can remove the CCJ from the public record. If you pay after one month, the CCJ will stay on your credit file for six years. It will be marked as 'Satisfied'.

It's important to note that these grounds require substantial evidence and legal procedures to be successful. 

How can I remove a CCJ?

Applying for the removal or setting aside of a CCJ involves a series of steps. Here's an overview of the typical process:

  1. Review your eligibility: Determine if you meet the criteria for seeking removal based on the grounds mentioned earlier.
  2. Gather evidence: Collect all relevant documents and evidence to support your case.
  3. Complete the N244 form: If a CCJ was issued incorrectly, for example, due to a wrong address or procedural errors, you can apply using an N244 form to have it set aside.
  4. Pay the application fee: There may be a fee associated with submitting your application.
  5. Submit your application: Send the completed form, along with any supporting documents and the fee, to the court where the CCJ was issued.
  6. Court review: The court will review your application and may schedule a hearing if necessary.
  7. Attend the hearing: If the court schedules a hearing, prepare to present your case and provide evidence.
  8. Court decision: The court will decide whether to remove or set aside the CCJ. This decision will be based on the evidence and arguments given.
  9. Notification: You will receive a formal notification of the court's decision.

Remember, this process can be complicated. It is a good idea to get legal help when trying to remove or set aside a CCJ.

How can I avoid a CCJ?

How can I avoid getting a CCJ?

Effective debt management is key to avoiding CCJs in the first place. Here are some strategies to help you manage your debt and reduce the risk of facing a CCJ:

  • Budgeting: Create a monthly budget to track your income and expenses using a budget planner. This will help you allocate funds to cover your debts and living expenses.
  • Prioritise payments: Make sure to prioritise payments on essential debts like rent or mortgage, utility bills, and taxes.
  • Communication: If you're struggling to make payments, don't ignore the issue. Contact your creditors and explain your situation. They may be willing to negotiate new payment terms.
  • Debt consolidation: Explore debt consolidation, which combines multiple debts into a single repayment. However, be aware that some consolidation loans may require security, such as your home. To learn more, read our guide on understanding debt consolidation.
  • Credit counselling: Seek advice from credit counselling agencies that can help you develop a debt management plan.

For more information, read our guide on how to manage debt effectively.

Why do I need legal advice for CCJ prevention?

When faced with a CCJ or legal action from a creditor, it may be best to seek legal counsel. Here's why legal advice could be useful:

  • Understanding your rights: A solicitor can help you understand your legal rights and the options available to you.
  • Negotiation: Legal professionals can negotiate with creditors on your behalf to reach a fair settlement or payment plan.
  • Legal representation: In cases where a CCJ has been issued or a court hearing is necessary, having legal representation can significantly improve your chances of a favourable outcome.
  • Avoiding pitfalls: Lawyers can guide you away from common pitfalls and mistakes that may worsen your financial situation.

This guide offers general information and you should not consider it legal advice. If you have a CCJ, get help from a lawyer or free debt advice. You can contact StepChange, Citizens Advice, or National Debtline for support. For more information, visit our payment difficulties page.

Summary

If the court issues a CCJ, it is important to address it quickly and follow the right legal steps. Seek legal counsel or free debt advice if you're unsure about your rights or the best course of action. Additionally, always strive to maintain open communication with creditors to explore mutually beneficial solutions.

Even satisfied CCJs remain on the credit file for six years from the judgment date, regardless of payment. However, a CCJ need not be a permanent setback ultimately. With determination and the right approach, you can work towards resolving the issue and rebuilding your financial stability.

At Central Trust, we can offer loans for people with CCJs. If you're considering a secured loan, speak with a qualified advisor. Contact us free of charge at 0800 980 6273, or complete our enquiry form, and we will return your call at a convenient time.

 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON YOUR HOME, THE LENDER MAY REPOSSESS IT.