What are County Court judgements?
A county court judgement is a type of court order that can be placed against you if you stop making payments and default on any agreement you have.
In Scotland the same process is known a enforcing a debt by diligence.
When are County Court Judgements issued?
Country court judgements are issued after you receive a warning letter or a default notice which will give you 14 days to respond and if you don't then the county court judgement can be filed by the person or company you owe.
Dont ignore the county court judgement
If you receive a county court judgement claim you should seek debt advice immediately. If you do not respond to the letter the county court judgement will be issued against you and you will have to pay the full amount you owe plus any fees.
The county court judgement claim form
The county court claim form will allow you to challenge the claim or accept the claim.It will also let you inform the court that you intend to defend the claim but need more than 14 days. If you accept the claim, the court will allow you to by by installments or in one lump sum. This will be mostly due to what you indicated in your income and expenses document
Enforcement of a County Court Judgement
If you fail to keep up on your agreement then the person or company you owe can ask the court to enforce the debt you owe by bailiff action, a charging order or an a attachment of earnings order.
Bailiffs will add extra charges to the debt and try to collect it. If this doesn't work they can come into your home and seize your goods and sell them to get the debt repaid.You can stop this step by asking the court to suspend the bailiffs warrant.
What is a charging order?
A charging order is when there is a charge placed on any property you own. This means if you don't pay your debt back you can lose your property.
An attachment of earnings order will ask the court to collect the debt directly from your wages.
The effects of a CCJ on your credit score
CCJs(Country Court Judgements) are very bad for your credit score as they stay on your credit file for 6 years and make your score fall incredibly. The only way to remove a CCJ from your credit file is if you pay the debt within 30 days of the county court judgement. You can also ask the court to set the judgement aside if you have reason to believe the borrower did not follow the right process or you never owed them. This will take the judgement off your credit file.