The starting point is to answer the question – what is a CCJ?
CCJ is an abbreviation for “County Court Judgment”. For a CCJ to be entered, the creditor (the person or business owed the money) must issue a claim at court, usually asking the court to order the debtor (the person or business who owes the money) to pay the sum claimed. If the claim is undefended, the person bringing the claim can ask the court for judgment to be entered for the sums claimed.
The vast majority of claims started at court are undefended, meaning that the debtor either ignores the court forms or admits the sum as being owed. In either case, the creditor is entitled to ask the court to enter judgment that the debtor owes the sum claimed. If the court is satisfied no defence has been put in opposition of the claim or the claim is admitted, it will make an order. The order will usually state the sum owed, how it has been calculated and when it must be paid by. Most orders specify the sum must be paid straight away and often states “fortwith”.
A CCJ will also be entered if a claim goes to trial and the court orders someone to pay someone some money.
If judgment is entered, the courts update the Registrar Of Judgments who updates the Register of County Court Judgments. Credit reference companies such as Equifax and Experian can see the Register. Lenders rely upon the records of credit reference companies so will see if a CCJ recorded against someone’s credit file. As we explain here, the effect of that can be considerable.
If you are still unclear what is a CCJ, keep reading on.