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In order to prepare you for the consequences of choosing to ignore an unpaid CCJ after six years, this guide will examine what happens in that scenario.
Use our Debt Solution Finder, provided to you by UK Debt Expert, to examine your options if you live in England and require assistance with a CCJ.
Most unsecured debts in the UK have a six-year statute of limitations, which means that the person or company you owe money to cannot pursue legal action to collect the outstanding balance.
But before this time frame expires, your creditor might begin the process of obtaining a CCJ against you, which would nullify the usual six-year statute of limitations.
The Short Answer:
A County Court Judgment (CCJ) will be removed from your credit file and the public register after six years, regardless of whether you’ve paid it or not. However, this doesn’t mean you’re off the hook. The creditor can still take action against you to recover the debt, even after six years have passed.
The Long Answer:
A CCJ is a serious matter, and ignoring it can have significant consequences. Even though it will eventually disappear from your credit file, the debt doesn’t magically vanish. Here’s what you need to know about what happens if you don’t pay a CCJ after six years:
The Creditor Can Still Take Action:
- Enforcement Action: The creditor can apply to the court for various enforcement actions, such as:
- Bailiffs visiting you to seize goods to cover the debt.
- An attachment of earnings order to take a fixed percentage directly from your wages.
- A third-party debt order to take money from your bank account.
- A charging order to secure the debt against your home.
- Making you bankrupt (if you owe more than £5,000).
- Extension of the CCJ: In some cases, the creditor can apply to the court to extend the CCJ beyond six years. This is usually only granted if the creditor can demonstrate that they have taken reasonable steps to recover the debt within the original six-year timeframe.
Impact on Your Credit Score:
- Negative Impact: Even though the CCJ will be removed from your credit file after six years, the negative impact on your credit score can linger for a longer period. This can make it difficult to obtain credit, such as loans or mortgages, at favorable rates.
Statute Barred Debt:
- Limited Recovery Options: After six years, the debt becomes “statute barred,” which means the creditor can no longer take court action to recover it. However, this doesn’t mean the debt is forgiven. The creditor can still pursue other methods of recovery, such as contacting you directly or selling the debt to a debt collection agency.
Debt Write-Off:
- Potential Solution: If you’re struggling to repay a CCJ debt, you may be able to enter a debt solution, such as a Debt Relief Order (DRO) or an Individual Voluntary Arrangement (IVA). These solutions can write off some or all of your debt, providing you with a fresh start.
The Bottom Line:
Ignoring a CCJ is never a good idea. It can have serious consequences for your finances and credit score. If you’re struggling to repay a CCJ debt, it’s important to seek professional advice to explore your options and find a solution that works for you.
Additional Resources:
- MoneyHelper: https://www.moneyhelper.org.uk/en/everyday-money/debt/dealing-with-debt/county-court-judgments
- Citizens Advice: https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/what-happens-if-you-dont-pay-a-county-court-judgment/
- StepChange: https://www.stepchange.org/debt-info/court-action/county-court-judgments.aspx
Disclaimer:
This information is intended for general guidance only and does not constitute professional financial advice. It is essential to seek advice from a qualified financial advisor before making any decisions about your finances.
Will my CCJ still be visible after six years?
Regardless of whether a CCJ is fully, partially, or never repaid, it will automatically be removed from the debtor’s credit record and the public register after six years.
This implies that lenders won’t be able to view your CCJ when determining whether to grant you credit, and it shouldn’t have any bearing on their choice.
Your credit score should progressively rise after the CCJ is removed, making you a more attractive candidate for credit.
Where will my CCJ be listed?
A judgment against you will appear for six years on both your credit report and the public register known as the Register of Judgments, Orders, and Fines from the Registry Trust.
Although the Register of Judgments, Orders, and Fines is available to the general public for a nominal fee, banks and lenders typically only access it in the course of evaluating applications for various credit products, including mortgages and loans.
This implies that although it may have an impact on your creditworthiness, your friends, family, or coworkers shouldn’t be able to find out from your entry that you have a credit card debt or debt.
The CCJ will be erased from your credit report and the public register if the entire amount owed is paid off within a month, making it appear as though it never happened.
If you acknowledge your debt and it is not too large, this is the best course of action because it will shield your credit score and give you more financial options for the next six years.
Is a Debt Written Off after 6 Years? (Statute Barred Laws)
FAQ
Can a CCJ be chased after 6 years?
Is a CCJ still on your credit report after 6 years?
How long until a CCJ expire?
What happens if you stop paying a CCJ?
What happens if I don’t pay a CCJ after 6 years?
What Happens if I Don’t Pay a CCJ After 6 years? Unlike a simple, contract debt, a CCJ does not have a time limit and it can still be enforced after 6 years. However, creditors make a formal application to get Permission from the Court if they want to use enforcement action.
What happens if I ignore a CCJ?
This can negatively affect your creditworthiness and make it challenging to obtain credit or loans in the future. – If you ignore the CCJ, it will be recorded on your credit report,
Can a CCJ be enforceable after 6 years?
Once a debt has a County Court Judgment attached to it, it can no longer be rendered unenforceable – the debt will have to either be repaid within 30 days (and wiped from the debtor’s credit record) or repaid after 30 days (and listed on their credit file for 6 years). Can a CCJ be enforced after 6 years from the date it was issued?
What if I have no money to pay a CCJ?
If you have no money left over to pay the CCJ, you would probably benefit from some help with your finances. Answer a few quick questions to find out how we can help you. Can I change how much I pay towards a CCJ? In most cases, you can ask the court to reconsider but you must act quickly.