Understanding CCJs – What You Need to Know

6 May 2025

Ever heard of the term “CCJ” before? It pops up in all sorts of financial conversations, application forms, and even in advertising. But what exactly is it?

A County Court Judgment (or "CCJ") is an official ruling by a county court that states you must pay a certain amount of money to someone else. Once this judgment is issued, it gets added to a searchable public register. From there, it’s likely to have a big impact on your credit rating.

Understanding what a CCJ is and how it affects your finances is key to taking back control and improving your credit health.

What Is a CCJ and Why Is It Important?

A CCJ signals more than just a debt; it acts as a marker of how creditworthy you are. Lenders and financial institutions use it to assess whether they can trust you to repay money. Ignoring a CCJ will only make things harder for you in the long run, so taking action quickly is essential.

Why Addressing Legal Threats Early Is Crucial

Here’s the thing though, CCJs don’t just happen out of thin air! They’re usually the result of a legal action that’s left to escalate. If you’ve received a warning or threat of legal action, it’s your chance to act before it goes further. Taking early legal advice can help you resolve the issue before a CCJ is even on the table, saving you from the potential hit to your finances and credit score. Remember, prevention is always better than cure!

How Does a CCJ Impact Your Finances and Credit?

The effects of a CCJ can linger for years, as it’s listed on the public Register of Judgments, Orders, and Fines for six years. Here’s how it can affect you:

  • Credit Score Woes: A CCJ can bring your credit score crashing down, making borrowing in the future significantly more challenging.
  • Loan Rejections: Lenders view CCJs as major warning signs and may refuse your loan or credit applications entirely.
  • Rental Hassles: Some landlords check credit reports, and a CCJ could impact your ability to secure a rental property.
  • Higher Costs: Even if a lender approves your application, you could face sky-high interest rates as they try to minimise their risk.

Can You Get a CCJ Removed?

Yes, it’s possible! But how you go about it depends on your situation. Here are your options:

  1. Set Aside the CCJ

If you think the CCJ was issued unfairly or by mistake (e.g., court papers sent to the wrong address), you can apply to have it “set aside.” You’ll need to provide evidence to the court showing why the judgment shouldn’t have been made, and if successful, the CCJ will be removed, allowing the debt to be reassessed.

  1. Pay the CCJ
  • If you pay off the CCJ within one month of the judgment date, it will be completely removed from your credit record.
  • If you pay it after the first month, the CCJ will stay on your record for six years but will be marked as “satisfied.” While this isn’t ideal, it’s still seen more favourably by lenders.
  1. Wait for the Time Limit to Expire

After six years, a CCJ gets removed from the public register and your credit record, regardless of whether you’ve paid it or not. However, creditors might still try to enforce the debt even after this period, so this isn’t always a foolproof solution.

Taking Back Control of Your Credit

Dealing with a CCJ can feel overwhelming, but it’s not the end of the world. Taking these steps can help you rebuild your financial health:

  • Regularly Check Your Credit Report to spot any inaccuracies, especially once you’ve dealt with a CCJ.
  • Pay Your Bills on Time to show lenders that you’re reliable. Consistent payments can boost your credit score over time.
  • Use Credit Responsibly, keeping balances low and paying off debts as quickly as possible.
  • Seek Expert Advice when in doubt. Engaging an expert can save you time, money, and unnecessary stress.

Need Help? Talk to an Expert Today

If you’re finding yourself caught up in legal threats or already dealing with a CCJ, don’t go it alone. Speak to a solicitor who can guide you through the process, help you take action, and put you back on track. The sooner you act, the better the outcome!

Legal disclaimer

The matters contained within this article are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such.

Whilst every effort is made to ensure that the information is correct, no warranty, either express or implied, is given as to its’ accuracy, and no liability is accepted for any errors or omissions.

Before acting on any of the information contained herein, expert advice should always be sought.

© Melissa Worth, May 2025

The Dispute Adviser

A legal blog by Melissa Worth
You can also follow and/or contact me on:
Copyright
2025
 © All rights reserved
Design by Rocket Steps
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram