When a creditor receives a County Court Judgment (CCJ) against you, it can enforce the debt in various ways. This may include a Warrant of Control, which allows a bailiff to enter your property and look for goods, or an Attachment of Earnings which can take money directly from your wages. You can ask the court to review the CCJ if you think it is not right, but only if you act quickly and seek advice.
It’s important to make repayments as soon as possible to struggling to pay self-assessment avoid a CCJ being registered on your credit file. The longer it stays on there, the more difficult it will be to get new credit in future. Keeping up with your payments on time also demonstrates that you are a responsible borrower and can manage your debts.
If you have been struggling to pay a CCJ, it’s essential that you contact your creditors and arrange a repayment plan as quickly as possible. If you don’t contact them, or if you miss a payment, the creditor can apply to the court for enforcement action against you. This can include a warrant of control, which allows the creditor to visit your home or workplace and remove goods. It can also include a garnishment order, which allows the creditor to take money directly from your wages. The creditor has to pay a fee to the court to use these methods of enforcement, and they can add these costs to your debt.
However, if you are in financial difficulty and cannot afford the repayments that have been agreed with your creditor, you should seek debt advice straight away. It is usually possible to ask the court to ‘vary’ the CCJ and look at your circumstances again, and set a different payment amount if appropriate.
This article relates to England and Wales. If you live in Scotland, you will need to seek advice that is specific to your situation.
If you cannot afford the payments that have been ordered by the court, you should apply to reduce them as soon as possible. Keeping up to date with these repayments will stop the creditor from using most kinds of enforcement, including sending in bailiffs or taking money from your wages. However, if repayment simply isn’t feasible, it may be helpful to seek insolvency advice such as a Company Voluntary Arrangement or Debt Management Plan. This will protect your business whilst you try to turn things around and find a sustainable way of repaying your debts. You can read more about these types of insolvency procedures here.