what happens if you don't pay a ccj after 6 years

December 2023

What Happens If You Don’t Pay A CCJ After 6 Years In December 2023

Imagine finding an old county court judgement (CCJ) on your credit report. What happens if a CCJ is not paid after six or if you don’t pay a CCJ after six years? 

In this article, we will discuss the repercussions of unpaid CCJs, their impact on your debtor’s credit report below, and the available options for dealing with them.

Topics that you will find covered on this page

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Impact of Unpaid CCJs on Credit Rating

A county court judgement that remains unpaid after six years will continue negatively impacting your credit score. Credit reference agencies have access to the Register of Judgements, Orders and Fines, a public register that contains CCJs.

These credit reference agencies use the information to update your credit reference file, affecting your ability to obtain credit or establish a bank account. Unpaid CCJs can also impact your insurance premiums, as insurance companies may view you as a greater risk.

Statute Barred Debts and Limitation Periods

The Statute of Limitations prohibits debt collection after a specific time limit or period. The typical statute of limitations for a CCJ is six years.

However, the debt does not automatically disappear from your credit report, file, or the debtor’s credit record after that same time limit or period. Instead, it prohibits the creditor from pursuing further legal action without authorisation.

Recognising that the debt still exists and that the creditor may continue to take other steps to seek repayment is crucial.

Dealing with Unpaid CCJs

If you have an unpaid CCJ after six years, you may need help handling the situation. If you believe the court case judgement was made in error or were oblivious to the court hearing, you may submit a “set aside” request.

You may present your case if the court agrees to vacate the verdict. Importantly, this application has a small fee, and you must act promptly.

Alternatively, the debtor may negotiate a payment plan with the creditor. Even if the statute of limitations has expired, you can still arrange to repay the debt.

This may entail consenting to a reduced lump sum payment or making periodic payments over time. Remember that the CCJ will remain on your credit report for six years from the date of the judgement, regardless of whether it has been paid.

How Unpaid CCJs Affect Your Debt Solutions

Unpaid CCJs can also limit your access to debt relief options. For instance, if you have outstanding county court judgements, you may not be eligible for specific debt management plans or individual voluntary arrangements (IVAs).

If you have a history of unpaid CCJs, some creditors may hesitate to offer you additional credit, such as loans or credit cards.

Consequences of Unpaid CCJs on Your Bank Account

A CCJ that is not paid can also affect your bank account. If you do not owe money or pay a CCJ, your creditors may file for a third-party debt order (previously known as a garnishee order).

This enables the creditor to recover funds directly from your bank account, which can be distressing and cause financial hardship.

It is essential to be aware of this potential consequence when dealing with delinquent county court judgments, judgments orders and fines, as it may impact your finances.

Council Tax Arrears and CCJs

Council tax arrears are another issue that can arise from unpaid CCJs. If you still owe the money for due council tax, the local government can take legal and enforcement action to collect the amount of money owed.

This may entail requesting a liability order from the court, which can lead to additional enforcement measures, such as sending bailiffs to your home or deducting money from your wages or benefits.

High Court Enforcement Officers and CCJs

Occasionally, creditors may employ High Court Enforcement Officers (HCEOs) to enforce delinquent CCJs to recover unpaid debts. These officers can seize and sell your property to satisfy your debt. They can also enter your property by force if necessary.

Dealing with HCEOs can be distressing; if you find yourself in this situation, you must know your rights and consult a debt advisor.

How CCJs Affect Your Credit Agreements

Unpaid CCJs can also hurt your credit agreements. Creditors will review your credit history, including county court judgements when you apply for credit.

The inability to enter into new credit agreements, including loans, mortgages, and mobile phone contracts, can be negatively impacted by late payments, default notices, and CCJs. 

Lenders may view you as a high-risk borrower and reject your application or offer you credit with a higher interest rate.

Improving Your Credit Score After a CCJ

Having a CCJ on your credit report is unquestionably detrimental to further credit, but there are ways to enhance your credit score.

For instance, you can concentrate on making on-time payments on your existing credit agreements, demonstrate financial responsibility by staying within your credit limits, and refrain from applying for too much new credit in a brief period.

Over time, these positive actions can assist in offsetting the adverse effects of the CCJ and credit rating, and your credit score may progressively improve. Six years of nonpayment of a CCJ can severely affect your financial health and credit. 

By comprehending the effects of unpaid CCJs on credit rating, bank account, council tax arrears, and debt solutions, you can make informed decisions about how to address them and improve your financial situation.

Impact of Unpaid CCJs on Credit Rating

Understanding Statute-Barred Debts in Different Regions

Depending on your location, the time limit and the laws governing statute of limitation period and-barred debts may vary. Northern Ireland, for instance, has its regulations regarding time limits and execution of county court judgements.

To comprehend your rights and responsibilities regarding unpaid CCJs and the statute of limitation period of limitations, it is essential to familiarise yourself with the local laws in your area.

Setting Up a Payment Plan for Your CCJ

If you decide to pay the debt associated with your CCJ, it is essential to devise a suitable payment schedule. Communicate with your creditor to negotiate an appropriate repayment plan based on your financial circumstances.

If you have a low income or other debts to manage, explain your situation to the creditor and request a more manageable payment schedule. 

You can prevent further legal action and alleviate some of the tension associated with unpaid debts by proactively addressing the CCJ.

How CCJs Affect Your Credit Record

Even after complete payment, a CCJ will remain on your credit report for six years from the date of judgement. During this time, the CCJ can hurt negatively impact your credit score, making it difficult to obtain additional credit or engage in new credit agreements.

However, after six years, the CCJ will be removed from your credit file, and your credit score may increase if you’ve maintained responsible financial behaviour.

"A county court judgement that remains unpaid after six years will continue negatively impacting your credit score."

The Role of Debt Collectors in CCJ Enforcement

In certain instances, creditors may employ debt collectors to recover delinquent payments. These debt collectors may contact you directly, adding to your tension levels.

When coping with debt collectors regarding your CCJ, it is essential to know your rights and, if necessary, consult a debt advisor. They can help you determine the best course of action to recover money and how to communicate with debt collectors effectively.

Formally Decided CCJs and Their Effect on Your Credit

A formally decided CCJ is one in which the court has rendered a verdict after reviewing the evidence and hearing both parties’ arguments.

This form of CCJ can significantly impact your credit score, as it indicates that the court has determined you owe the money and have not made arrangements to repay it.

It is imperative to respond promptly to a formally decided CCJ, either by reimbursing the money or obtaining legal counsel to contest the judgement if you believe it was made in error.

Differences Between County Court Judgments and CCJs

In the United Kingdom, county court judgements (CCJs) are court orders that require a delinquent to repay money owed to a creditor.

County court judgment decisions and court decisions CCJs are frequently used interchangeably to refer to the same type of legal proceeding.

When a creditor believes you owe money, they can petition the county court for a judgement; if the court grants the request, a county court judgment CCJ is issued against you. This judgement requires you to repay money for the debt entirely or through a payment plan.

CCJs and Your Ability to Borrow Money

A CCJ stay on your credit report can hurt your ability to acquire money and obtain additional credit. Due to a visit to your credit file and a history of delayed payments and outstanding debts, lenders and other financial institutions may view you as a high-risk borrower.

This may result in increased interest rates or even denial of credit. To increase your chances of obtaining credit in the future, it is essential to address any CCJs stay on your credit record and strive to improve your credit history.

How Limitation Acts Impact Debt Collection

The Limitation Act limits the time creditors must file court actions to recover debts. In England and Wales, the statute of limitations for most debts is six years, while it is five years in Scotland.

The limitation period by law of rules commences on the date of the debtor’s last payment or written acknowledgement of the debt. Once the statute of limitations has expired, the creditor can no longer legally pursue debt collection through court action.

This does not, however, indicate that the debt has been eliminated; it still exists and can be pursued through other means.

Consumer Credit Act and Default Notices

The Consumer Credit Act regulates credit agreements and requires creditors to provide a default notice before taking specific actions, such as terminating a credit agreement or requiring complete debt repayment.

Notices of default allow debtors to rectify the situation, typically by making late payments or negotiating with the creditor. If the debtor does not comply with the default notice because of default, the creditor may take further action or file a lawsuit to recover the debt.

Effect of Outstanding Council Tax Debts on CCJs

Unresolved council tax arrears can be judgment orders, and fines result in CCJs. Unpaid council tax debts may result in further enforcement action through court action, such as a county court issuing a liability order.

A liability order authorises the council to take additional measures to collect unpaid council tax, such as garnishing wages or benefits or instructing enforcement agents to confiscate the debtor’s property.

When outstanding council tax debts or arrears are paid promptly, a CCJ cannot be issued, and further enforcement actions are avoided.

Dealing with Insurance Companies and CCJs

If a CCJ has been filed against you, it may also negatively affect your ability to obtain insurance or result in higher premiums. Due to their financial history, insurance companies may view individuals with CCJs as posing a greater risk.

When applying for insurance to obtain accurate quotes and avoid future complications, be truthful about your debtor’s credit history and any extant CCJs.

Dealing with Unpaid CCJs

Understanding County Court Judgments

In the United Kingdom, a county court judgement (CCJ) is a court order requiring a delinquent to repay a debt to a creditor. The date of review is the day the court issues the order.

The local county court processes the CCJ, and if the debtor fails to respond or cannot reach an agreement with the creditor, the court may rule in favour of the creditor. 

This county court judgment order enforces the debtor’s obligation to repay the delinquent balance in full or via a payment plan.

How CCJs Affect Your Financial Life

A CCJ can have significant financial repercussions. It may hurt your credit score, making it challenging to obtain additional credit, establish a bank account, or even rent a home.

A CCJ remains on your credit report for six years, affecting your ability to borrow money, obtain insurance, and secure employment in specific industries. Once the CCJ is paid, it will be marked as “satisfied” on your credit report, but the record will remain for six years.

Statute Barred Debts and Limitation Period

A statute-barred debt is one for which the statute of limitations has expired, preventing the creditor from pursuing legal action to recover the debt. In England and Wales, the statute of limitations for most debts is six years, while it is five years in Scotland.

However, if the debtor acknowledges or pays the deficit during this period, the statute of limitations barred debt begins again. A statute-barred obligation still exists even in a bank account, but the creditor’s ability to collect through the courts is limited.

Missed Payments and Their Consequences

Debtors who miss payments can face severe consequences. Not only can they result in CCJs, but they can also harm your credit report and influence your relationships with creditors.

If you have delayed payments on your credit report, you must take immediate action and get back on track with your repayments. 

If you are struggling to meet your financial obligations, consider consulting a debt advisor or investigating debt relief options to help you regain financial control.

The Role of Insurance Companies in CCJs

A CCJ may impact your relationship with your insurance company or providers. Due to your financial history, some insurers may view you as a higher risk, deny you coverage, or charge you a higher premium.

When applying for insurance, it is essential to disclose any CCJs to avoid potential problems and ensure accurate estimates. Remember that resolving your financial issues and improving your credit score can positively affect your insurance options.

Dealing with Court Cases and Enforcement

If a debtor fails to respond to a CCJ claim or does not repay the money directly, the creditor may pursue additional measures to recover the debt.

This action may involve using enforcement agents with authority to seize and sell the debtor’s assets or a third-party debt order that blocks the debtor’s or even a bank account until the debt is paid.

In extreme circumstances, the court may authorise enforcement agents to enter a debtor’s property to seize products forcibly. To avoid such outcomes, it is essential to promptly respond to any CCJ claims and maintain open communication with your creditors.

Meet the author

Jane Parkinson

Jane Parkinson

Jane is one of our primary content writers and specialises in elder care. She has a degree in English language and literature from Manchester University and has been writing and reviewing products for a number of years.

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Frequently Asked Questions

What is a County Court Judgment (CCJ)?

A County Court Judgement (CCJ) is a court order issued by a county court in the United Kingdom requiring a delinquent to repay a creditor. The date of judgement signifies the judgment date and the start of the court’s enforcement of the repayment obligation. If a debtor fails to repay the debt, the creditor may take additional measures to recover the money owed, such as employing enforcement agents or blocking the debtor’s bank account.

How does a CCJ affect my credit?

The Register of Judgements, Orders, and Fines, a public database, records CCJs, which hurt your credit report. The CCJ remains recorded on the public register in your credit file for six years, making it challenging to obtain additional credit, establish a bank account, or even rent a home. This can also affect your relationship with insurance companies, who may view you as a higher risk and charge you higher premiums or deny coverage.

Can a CCJ be removed before six years?

A CCJ can only be removed from recorded on the register or stay on your complete credit file or report before the six years if it was entered in error, paid within one month of the date of judgement, or if you successfully petition to set it aside. For a CCJ to be vacated, you must have a valid reason, such as not receiving the court documents or having a good defence that was not considered. In this instance, you must submit a reply form and ask the court to remove the CCJ from being recorded on the register.

Is not paying a CCJ a criminal offence?

Failing to pay a CCJ is not a criminal offence in the UK. Suppose you need to comply with the court’s order. In that case, the creditor may take additional measures to collect the debt, such as hiring an enforcement agent to confiscate and sell your assets or requesting court permission to enter your home forcibly. To avoid these consequences, promptly resolving any CCJs you owe money to and communicating with your creditors is essential.

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