In the UK it is possible for someone to whom you owe money to take a County Court action against you. In such circumstances a court hearing can be avoided by paying the outstanding amount, otherwise a court hearing will take place which will determine whether or not you owe the money and how you should repay any debt.
Any order issued by the court insisting that you repay a debt is known as a County Court Judgment (CCJ). If instances were you have CCJs from more than one creditor, the court may combine your debts ordering you to pay a single payment each month from which all creditors will be paid. If you circumstances make it impossible to pay the amount agreed it should be possible to change the amount of the payments or postpone repayments until such time as you can afford to pay.
The implications of having a CCJ against your name
CCJs are usually recorded on the Register of County Court Judgments and are not removed for 6 years. The most important negative effect that having a CCJ to your name will make is that it decrease your chances of getting credit. Generally, lenders will look to avoid dealing with individuals who have a bad credit rating, meaning many those with CCJs will have less choice and will have to pay a higher fee when in need of a loan.
Getting a CCJ removed from your register
You may be able to get your CCJ removed form the register if you manage to pay your CCJ within one month of the date of issue or you get the judgment set aside by the court. (The judge withdraws it because it was wrong).
Even if it takes you more than one month to settle the CCJ, you can apply to have your CCJ marked as satisfied which will inform anyone searching the register that you have paid the judgment in full, improving your chances of getting credit.
Getting advice for those with CCJ problems
For help with CCJs or other financial problems get in touch with The Citizens Advice Bureau or The National Debtline.