CCJ & Bailiffs
A CCJ or County Court Judgment is the term for a judgment made against a person for defaulting on a debt. The judgment is passed in a County Court.
Generally, if a CCJ is paid in full within 30 days of the date of the judgment, it will not appear on the credit register. However, should a judgment be settled after that period it will be entered into the public record and it will affect your credit rating.
The Consequences of having a CCJ against you
A CCJ will go on your credit file and will affect your credit rating. It will make it more difficult for you to get a credit card, loan, mortgage or any type of finance in the future. You will incur costs for having a CCJ as you will have to pay the creditor's court costs.
The only benefit to you
The CCJ creditor will stop adding interest to the amount you currently owe them and the court may decide on a payment plan.
If you do not keep up these payments the creditor could call in the bailiffs to seize your assets and you will have a CCJ against your name which will affect future claim for credit.
Who are bailiffs and enforcement officers?
Bailiffs and enforcement officers are authorised to remove and sell your possessions in order to pay the money you owe subject to a CCJ and warrant of execution.
How do they recover the money you owe?
They can seize and sell your goods to cover the amount of a debt and costs you owe.
They may initially contact you by phone/letter to give you the opportunity to pay the debt. If you don't they will visit your home to seize your goods.
If they seize your goods, they may take them straight away or leave them at your home. If they leave the goods with you it is called walking possession. This means that unless you keep up the arrangement to pay, they have the right to return to your home at any time to remove the goods and sell them at public auction. Once they have taken walking possession, you cannot dispose of the goods seized until the warrant is withdrawn.
They will try to obtain the best price for your goods if they are selling them at public auction. This price includes the fee they are entitled to charge, the cost of removing the goods and the cost of selling them.
It is important to remember that auction prices are usually much lower than high street prices.