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CCJ Debt

CCJ debt is a financial term that has relevance to people in the UK. The following page describes CCJ debt and thus provides an explanation as to what it is and what CCJs signify.

What Is A CCJ Debt Judgement?

CCJ is an acronym standing for County Court Judgment. This can be considered a blow to an individual’s financial future. A CCJ is not a trial about guilt and innocence, but is actually a legal order from a court to repay your debt (or debts) to lenders or creditors within a fixed period time. Consequently, CCJ and debt are words that are often linked.

If you are able to pay your debts to the creditors on time (usually within a month), you will not be entered in the Country Court’s Registry. However, failure to do so will result to the inclusion of your credit file in the register of the County Court Judgment for a period of six years. If this happens, it can mean that you will become financially paralysed for six years. This can be true in matters like mortgages, student loans, business loans or credit card debt.

Of course, all of us suffer from a financial difficulties from time to time, but many of us avoid having a CCJ, debt and other types of severe financial problems.

CCJ Debt Problems

Credit lending companies and institutions either in public or private sectors have helped millions of people all over the world to obtaina good education, set up businesses and raise and maintain standards of living. However, if it so happens that you are not able to repay your debt, CCJ proceedings may be invoked by your creditor as the payment terms agreed in the formal contract between yourselves has been breached. Your creditor can apply for a claim in the County Court and the County Court will then send you a CCJ debt hearing.

If you incur a CCJ for debt payment breaches the six year period County Court Register inclusion, during which you are not able to apply for any loan or credit, can be a very painful thing, since you will likely be unable to seek credit, loans or any kind of mortgage.When you apply for a mortgage from banks, they usually ask credit reference agencies if you have a CCJ debt judgement. For the six year period, your credit is frozen, thus hindering you from all kinds of venture to which you might aspire.

Clearing A CCJ Debt History

The good news is all credit records exceeding the six year period are destroyed whether they are paid or not. However, it is better to pay all your debts during the six year period so that creditors will not ban you from other lending companies, after which your name may then be removed from the County Court Register.

A CCJ debt judgement is not a criminal offenses: it is just a way for a court to resolve a matters of debt in a fair way.