Is a default a CCJ? Notices, credit records and court judgments

Are you worried about a bailiff knocking at your door or your belongings being taken away because of a default notice? You might be asking, “Is a default a CCJ?” Don’t fret; you’re at the right place.

In this article, we’ll cover:

• What a default notice is and how it differs from a County Court Judgement (CCJ).
• Tips on what to do when you get a default notice.
• The consequences of a default and a CCJ, and which one is worse.
• How to deal with a CCJ claim and what happens if you ignore it.

Lastly, we’ll guide you on how to repair your credit history after a CCJ and where to get professional advice.

A default notice, a credit-file default and a County Court judgment are different. Check which document or record you are dealing with before deciding how to respond.

What is a Default Notice?

A Consumer Credit Act default notice warns of a breach and, where required, gives time to remedy it before specified enforcement steps. A credit-file default is a separate record of an account breakdown, normally retained for six years from its default date. The notice itself is not a CCJ and is not automatically a six-year credit-file entry.

What Happens When You Get One?

Read what the notice requires and by when. If you cannot remedy the breach, explain your budget and seek an affordable arrangement or debt advice. A demand for the whole balance depends on the agreement and compliance with the applicable legal steps.

It is worth gathering all your financial information in a monthly budget tracker, such as the one I have freely available for download. Use this tracker to help you work out how much you can afford to pay to your creditor. You can even use it to show how you came to the amount you propose to support you in your bid to repay the amount in affordable instalments.

Depending on the agreement, the breach and the required notices, further action may include:

Pass the debt over to debt collectors

Take court action to recover the debt with a CCJ

Take court action to recover the debt to reclaim goods if the debt relates to a hire purchase (such as a car).

What Should You Do When You Receive It?

For a default notice under section 88 of the Consumer Credit Act, the specified remedy date must normally allow at least 14 days after service. There is no universal maximum of 30 days. Check the notice and seek advice if it appears defective.

Remedying the breach within a valid notice period can prevent the specified enforcement consequences for that breach. It does not guarantee removal of all missed-payment history or decide whether an independently reportable credit-file default is accurate.

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Which Is Worse?

A CCJ is a court judgment ordering payment, whereas a default notice is a creditor’s statutory notice and a credit-file default is a reporting entry. Both an accurately reported default and a registered CCJ can affect credit, but their dates and removal rules differ. A CCJ paid in full within one calendar month can be removed from the register.

Respond through the correct route: discuss or dispute a default notice with the creditor, but follow the court procedure and deadline for a claim or judgment. Contacting the creditor alone does not answer a court claim.

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Consequences of Failing to Pay

You default on a CCJ If you fail to keep up with the agreed repayments as set out by the court. If this happens your creditor can

Apply for the appropriate warrant or other authority to use bailiffs. Goods, entry and exemption rules still apply; a judgment does not authorise unrestricted seizure. See related guidance.

Apply to have the money taken directly from your wages with an attachment of earnings  

Seek a charging order over an eligible property interest or asset. An order for sale is a separate procedure; a charging order does not itself force a sale. See related guidance.

In England and Wales, a creditor’s bankruptcy petition generally requires at least £5,000 of qualifying debt and the relevant insolvency conditions and procedure. It is not an automatic consequence of missing one judgment payment. Seek urgent advice about a statutory demand or petition.