A civil case can be brought to the County Court in England and Wales or the Sheriff Court in Scotland when a person can't pay his debts. The court can make a decision against the debtor, which is called a judgement (or a decree in Scotland) and stays in effect until the debt is paid.
Even if a person has one or more CCJs on their record, they may still be able to get credit. However, they need to be looked at in the context of the whole application. In this case, the lender might see the person as someone who hasn't been able or ready to meet obligations in the past. This could show whether or not the person plans to do so in the future. This shows how important it is to get rid of a CCJ.
Most CCJs come from court summonses that were not fought. This often happens because the defendant doesn't know what the right thing to do is to solve the problem. So, the court will make a decision by default.
The Central Registry will then tell the credit reference agencies about the CCJ. A creditor can be paid off in full, but the CCJ will still be on file. This is partly because nobody has ever asked for the CCJ to be taken away. Just because the person who got the sentence didn't know it was necessary.
If a CCJ is set aside or reversed (which can happen if an appeal is filed or if the arrears are paid within one month), the entry will be taken off the Register of County Court Judgments by the courts.
To get rid of a CCJ, you need the following information:
#The name of the person who is suing. Most of the time, this will be the creditor.
# Number of the Case. This is always needed, since the court won't even look at an application without a case number.
# The first call to action.
# What the Court is called.
How to Get a CCJ Taken Away
First, you will need to get a copy of your credit file that is up to date. This copy can be requested online or in writing from one of the credit reference agencies, usually Experian or Equifax.
Second, find out everything you can about the CCJ that was made against you. As was already said, this information will come from your credit file.
The next step is to write a letter to the court and ask them to send you everything they know about you and your CCJ.
What should I do if I got a CCJ unfairly or for the wrong reason?
Free of charge, you can ask the County Court for a form called the "N244." Fill out the N244 form to ask the Courts to get rid of a CCJ that is unfair or wrong. This form needs to be filled out with all the information about the CCJ and a reason why the judgement should be thrown out.
Here are some of the most common reasons why a CCJ should be thrown out:
# The notice to pay the debt wasn't given for the full 28 days.
# When the summons and judgement happened, the wrong mailing address was used.
# No one ever got the summons.
# Even though all arrears were paid off in 28 days, the issued CCJ was still on the credit file.
Due to a late summons, the court did not give the person 21 days to answer.
# Someone else used your name to get credit, which led to a CCJ.
# Settling out of court with the plaintiff, which led to all arrears being paid
#You can appeal if you didn't get any notice of the judgement or judgments against you.
# Couldn't go to court because of something else
# A summons was taken out against both you and another person, but only one of you got it.
It's important to remember that having one or two CCJs won't stop you from getting a loan or mortgage. In the world we live in now, lenders have had to change how they lend money to keep up with demand. Because of this, there are a number of specialised ways to get money, such as no credit check loans and CCJ remortgages. You can have up to two recent CCJs and still use these products, but the interest rate you pay will be a little higher than with a standard loan or mortgage.
