CCJs & Defaults

It's easy to fall behind on your payments, and this may result in a CCJ or a Default being placed against your name.

The CCJ process -

1. If you do not pay a bill, a loan, an invoice etc
2. You receive a formal demand for payment from the creditor
3. If you ignore the demand...
4. The creditor sends you a ‘Claim Form’ (previously a Summons) demanding payment within 14 days or your defence in writing (following court rules)
5. If you ignore the Claim Form...
6. The creditor asks the court to enter a Default Judgment (the CCJ)
7. The court would then send you the CCJ giving you 28 days to pay
8. And if you ignore the CCJ...
9. When the 28 days expire, the CCJ will be on your record for 6 years

In addition, a large number of County Court Judgements (CCJ's) are the result of undefended summonses. This is usually because the defendant is unaware of the response needed and does nothing, so the court enters a 'Judgement by Default'.
The Central Registry then passes the judgements to the credit agencies.

You cannot set aside a CCJ that you knew about, or did not pay, but can pay now. This will affect your credit history, but it is not the end of the world as it's still possible to get finance. Advantage Loans can source loans for people with CCJs against them.

Further action to recover the debt once a CCJ has been registered can be taken against you. This can include attachment of earnings and bailiffs, who in some circumstances have the right to enter your premises and seize goods to the value of the debt.