If you don’t pay certain debts, your creditor could threaten to take you to court and could get a county court judgement against you. Find out what this could mean to you and how you may be able to deal with it. 

What is a county court judgement (CCJ)?

A county court judgement to recover money is a court order that states what you must pay towards an individual debt. The order can specify how much and when the money should be paid, and if it can be paid in instalments. County court judgements are often used as a way of recovering non-priority debts. 

You can defend a claim made by your creditor if you don’t agree with it or only agree with part of it. If you agree you are liable for the debt, you can make an offer to pay at an affordable rate. You must complete a ‘statement of means’ form, which will provide the court with information about your financial circumstances and allow it to decide on an affordable rate of repayment. You must make sure that you respond to the court within the deadlines set, otherwise you risk the court ordering that you pay the full sum immediately. 

If a judgement is made and you don’t pay the amount required within a month, details will be made publicly available on a court register for six years – credit reference agencies are likely to note this and it could affect your credit rating. 

What happens if you miss payments?

If the court orders you to make regular payments to your lender, it is the lender’s responsibility to collect them. Make sure you keep receipts and a record of all the payments you make. If you don’t make payments as agreed – if monthly payments are specified – they must be paid monthly - the lender can ask the court to take further action to pay your debt and court fees. 

Options include applying for: 

• a warrant of execution – to allow court bailiffs to take and sell certain belongs
• an attachment of earnings order – allowing deductions from your wages, statutory sick pay or occupational pension (but not benefits)
• a charging order – allowing a charge against your share of a property and for interest to be charged at a rate set by the Government
• a third party debt order – this instructs someone who owes you money (for example, a bank holding your savings account) to pay it to your lender instead.

What if your circumstances change?

You can apply to the court to change the terms of your county court judgement if your circumstances change, for example if you can no longer afford the payments or if the original decision was made without the court being aware of some crucial information. 

How do you avoid a creditor applying for a CCJ?

You can always try to negotiate with a creditor who is threatening to take you to court, particularly if you make an offer of repayment that you can afford and keep to.

A debt adviser can help you work out an affordable budget you can stick to and you may find a budgeting tool useful for helping you work out where you are. 

If your creditor does apply for a CCJ, find help on how to respond from Direct Gov and National Debtline.

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