Is a County Court Claim a CCJ? What’s the Difference?

When a County Court gets in touch about a debt you owe, it can be a bit scary. You might be asking, “Does a County Court Claim mean I have a CCJ?” Don’t worry; you’re in the right place to find the answers.

Every month, over 4,600 people visit our website for guidance on court matters and debts. We’re here to guide you through:

• What a County Court Claim is and how it differs from a County Court Judgement (CCJ).
• Steps to take if you receive a County Court Claim or a CCJ.
• How long a County Court Claim and a CCJ last.
• What can happen if you ignore a County Court Claim or a CCJ.

We understand that you might be worried about not being able to pay a debt or scared of further court action. Many of us have been through the same and know how hard it can be. But remember, we’re here to help you deal with this and make things a little easier.

Let’s dive in.

What is the purpose of a form?

The purpose of a county court claim form is to inform you that you’ve been taken to court for a past-due debt and need to respond quickly. Generally, county courts will give you approximately 14 days to look through the claim form and send your response.

If you need time to review the claim document and prepare your response, you can send an “Acknowledgement of service” form to the county court. The court will extend your payment deadline by additional 14 days, within which you will send in your response.

What is the purpose of a CCJ?

Generally, county courts are there to settle non-criminal cases, such as debt disputes between individuals, businesses, or debt collection agencies and their debtors. The court will send a claim form letter to the defendant, giving them a chance to either challenge or admit the claim.

Suppose they admit the claim, the court will hand down a judgement called County Court Judgement (CCJ). The purpose of the judgement is to settle the collection lawsuit and determine when and how the outstanding debt should be paid.

If they deny the claim, they will state their reasons for denying and the court will see if there’s any need for a hearing.

How long does a Claim last?

A county court claim form expires 14 days after it’s been delivered unless you request an extension of the deadline by sending an “Acknowledgement of service” form to the court.

How long does a Judgement last?

Generally, if you get a County Court judgement (CCJ), it will be recorded on your credit file and a public register for six years. Any potential creditor, such as banks, loan companies, and even insurance providers, can see that you have received a CCJ and will often be reluctant to give you credit.

However, if you can pay the debt within one month of getting the CCJ, you can ask to remove the judgement from the register and your credit profile. But if you pay after one month, the judgement will be marked as “satisfied” but not removed from the register.

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Are they the same?

No. A county court claim is not a county court judgement (CCJ). A court claim is a letter that tells you someone has taken you to a county court for an overdue debt, while a county court judgement is the court’s decision on the debt.

When you get a court claim, it doesn’t mean you are legally responsible for the debt or that you must pay the debt. The court allows you to defend the claim if you don’t recognise the debt or for any other reason you may have.

On the other hand, if you get a CCJ, you become legally responsible for the debt and will be ordered to pay it within a stipulated time frame.

Below are some common reasons people defend county court claims:

1. Wrong debt assignment – this is when a debt that doesn’t belong to you is wrongly assigned to you either because you bear the same name as the original owner, due to identity fraud, or any other reasons.

2. Statute-barred debt – this is when a creditor takes too long to take debt enforcement action. Typically, debts become statute-barred after six years, and creditors can’t use legal means to recover them any longer.

3. Wrong debt amount – this is when you admit that you owe the creditor, but you do not agree with the amount they informed the court. Possibly, some payments toward the debt weren’t deducted from the balance, or the creditor has included some strange charges which increased the debt balance. Debtors can defend a county court claim form if they think the claimed debt balance is wrong.

4. Claimant owes defendant – when a claimant takes a defendant to court for unpaid debts while also owing the defendant up to the same amount, the defendant can initiate a counterclaim to dismiss the case. A counterclaim form comes with the court claim pack for debtors to respond with if they fall in this category.

5. Bad goods or services – a creditor who takes their debtor to court over a business transaction where something went wrong on the creditor’s part isn’t entitled to debt repayment. You shouldn’t be responsible for other people’s mistakes, and the court will listen to your defence.

6. Declaration of Bankruptcy – people who have gone bankrupt can defend a court claim by declaring that they’ve gone bankrupt. Most of your debts will be automatically written off, and if a creditor demands debt repayment or even takes you to court, you can have the case dismissed by declaring your bankruptcy. Debts that bankruptcy wouldn’t eliminate are:

· student loans

· social fund loans

· maintenance and child support payments

· magistrates court fines

· court-ordered payments under a confiscation order, e.g., for drug trafficking

· debts you owed due to personal injury or for causing the death of another person

What happens if you ignore a form?

If you ignore a court claim form, the court assumes you agree to the allegations and will proceed with its judgement. Some people think ignoring a court claim means the court won’t address the case or the claimant will forget about it, but that’s not true.

Ignoring a claim form doesn’t stop court action; it will only make you face a harsh decision, as the court will tend to rule in favour of the claimant. The judge will hand down a default CCJ, which means that you will be ordered to pay the debt as claimed by the creditor.

What happens if you ignore a CCJ?

If you ignore a CCJ, you will likely face further enforcement action, which the court puts in place to recover debts. The court will help the claimant collect their money using any of the following means:

1. Arrestment of Earnings

Whether you earn daily, weekly, or monthly, the court can arrest your earnings to pay off your debts. This is applicable if you’re employed and not a serving member of the armed forces. Your employer will receive an Earnings Arrestment instructing them to subtract a calculated amount from your wages or salary.

If you’re self-employed or an armed forces member, the court will have to look at other means to collect the debt.

2. Arrestment of Bank Account

Money can be taken from your bank account to settle debt arrears if you have failed to comply with the court’s judgement. The court will send a “schedule of arrestment” to your bank, instructing them to freeze up to the debt amount and inform you of this action.

The money will be released to your creditor with your permission after 14 weeks from the date of the “schedule of arrestment”.

3. Seizure of possessions

With a seizure order, county court bailiffs will come to your home or business premises and remove your valuables. Usually, county court bailiffs will send you a notice before visiting, especially if it’s their first visit. The county court bailiff letter will state the purpose of the visit, and they’d offer you different payment options before finally getting a seizure order.

If your creditor is using High Court Bailiffs, you may not get a prior warning as these enforcement agents have more legal powers than magistrate court bailiffs. They can break into your property to evacuate your possessions or even arrest you if there’s a warrant for your arrest.

What should you do if you get a claim?

You should respond to the claim within the deadline or ask for an extension. Failing to respond will cause you to suffer a default judgement that doesn’t consider your personal or financial situation.

You can respond by either agreeing to the claim or disagreeing. You will be ordered to pay the debt if you agree to it. But you must defend the claim in a court hearing if you disagree.

What should you do if you get a CCJ?

If you get a CCJ because you genuinely owe someone, it’s better to comply with the judgement and send in your payment offer than ignore and face enforcement action. You can either:

· Pay the debt at once, or

· Ask to pay in instalments

You will submit your offer of instalments as well as some personal and financial details, such as:

· your income

· living costs

· other debts (if you owe other people too)

The judge will determine if your offer is acceptable with this information, and you will commence repayment immediately. If the offer is not accepted, you might have to prove to the court why it is the best you can do or negotiate a different payment plan.

Differences summarised

County Court Claim Form	County Court Judgement (CCJ)
It’s a letter sent to inform a debtor that a court action has been initiated against them for an outstanding debt.	It’s a judgement passed by the county court after a claim form letter has been delivered.
It expires after 14 days (unless you request an extension)	It expires after six years (unless you pay the debt within one month after the order).
You are not yet legally responsible for the debt and can challenge or defend the claim.	You become legally responsible for the debt after a CCJ.
It doesn’t affect your credit history	It affects your credit history

Conclusion

A county court claim form is different from a county court judgement (CCJ) in many ways. Knowing which one you’ve received and how to handle the situation is vital to avoid facing enforcement action.

Is CCJ a criminal conviction?

No. A CCJ isn’t a criminal conviction; you can not go to jail for getting one. However, it can badly hurt your credit score and make it difficult to get credit or insurance.

Can you cancel it?

If you don’t owe the money or weren’t aware you have a CCJ, you can ask the court to cancel or set aside the judgement. This usually comes at a fee and can be a tedious process; that’s why responding to a CCJ when you have one is important.

How do I know if I have one?

It’s possible to have a CCJ and be unaware for a long time because they are delivered through the post. In fact, some people do not realise they have a CCJ until they’re applying for something that requires their credit profile, such as a mortgage, loan, or insurance.

To know if you have a CCJ, you should check your credit report from time to time and not wait until the need arises. You can also find out by checking the Registry Trust for details of judgements against you.