County court judgment (CCJ)

Definition

A county court judgment (CCJ) is a legal ruling issued by a county court against an individual or business that has failed to repay money owed to a creditor.

What is a county court judgment?

CCJs are typically obtained when a creditor takes legal action against a debtor for non-payment of debts, such as unpaid loans, credit card bills, or outstanding invoices.

To obtain a CCJ, a creditor must file a claim against the debtor in a county court, providing evidence of the debt owed and the debtor’s failure to repay. The court reviews the claim and issues a judgment if it finds in favour of the creditor. Debtors have the opportunity to respond to the claim and defend themselves in court before a judgment is made.

If the debtor fails to comply with the terms of the CCJ and repay the debt by the specified deadline, the creditor can take further legal action to enforce the judgment. Enforcement options may include obtaining a warrant to seize assets, garnishing wages, or placing a charge on the debtor’s property.

A CCJ on a debtor’s credit record can have negative consequences, affecting their ability to obtain credit, loans, mortgages, or other financial products in the future. CCJs remain on the register for six years, even if the debt is repaid.

Example of county court judgment

John borrowed £5,000 from a bank to start a small business. Despite initial success, John’s business struggled, and he was unable to repay the loan. After several attempts to contact John for payment, the bank decides to take legal action against him.

The bank files a claim against John in the county court, seeking repayment of the outstanding debt plus interest and court fees. The court reviews the evidence presented by the bank and issues a county court judgment (CCJ) against John for the full amount owed.

The CCJ specifies that John must repay the £5,000 debt to the bank within 30 days of the judgment. If John fails to comply with the terms of the CCJ and repay the debt by the specified deadline, the bank may take further legal action to enforce the judgment.