What happens if a CCJ is still unpaid after six years? The CCJ will be removed from the Register and your credit file after six years. During these six years, the creditor and the court can take further action you. It's very risky to wait for a CCJ to 'drop off' your credit file.
Once a creditor has a county court judgment (CCJ) for a debt, the Limitation Act does not put any time limits on how long they have to enforce that judgment. If your CCJ is more than six years old, and the creditor wants to use enforcement action, they must first get permission of the court.
If your entry on the Register is changed, the credit reference agencies will be told that you've paid your debt. The CCJ will still stay on your credit report until the 6 years is up but your record will show that you've paid the debt. You might find it easier to get credit when your record has been changed.
If you ignore the letter or notice, the court will still issue the judgment but they won't be able to take your circumstances into account. They could, for example, order you to pay back the debt all in one go when it would be impossible for you to do so.
After six years, your CCJ will be removed from your credit report, so lenders won't be able to see it when they're deciding whether or not to lend you money. When the CCJ is removed, your credit score should go up too – making you an all-round stronger applicant for future finance.
Enforcing a CCJ
Once sealed, a writ of control is applied for at the High Court or local District Registry. It is this writ that gives us our powers. The whole process normally takes less than a week, but can take up to 28 days, as we are dependent upon the speed of service from the issuing court.
For most debts, the time limit is 6 years since you last wrote to them or made a payment. The time limit is longer for mortgage debts. If your home is repossessed and you still owe money on your mortgage, the time limit is 6 years for the interest on the mortgage and 12 years on the main amount.
If you pay the CCJ in full within a month of the judgment, you can apply to have the CCJ removed from the public register and from your credit file. To do this, you need to apply for a 'certificate of cancellation' from the County Court hearing centre which issued the judgment, providing them with proof of payment.
If the person tries to take out further credit, every lender will be able to see the CCJ. However, the CCJ expires after six years, and it will be removed from a credit file and the public registry, even if it was not paid off.
Can a bailiff force entry? The answer to this depends on the type of debt they are collecting, and whether they have visited before. If they are collecting an unpaid CCJ and this is their first visit, they cannot force entry.
Time restrictions on CCJs
According to the Limitation Act, a creditor can only pursue an outstanding County Court Judgement for six years from the date of the judgement. Beyond that time period, you would need to ask for permission from the court to continue.
Your credit score should increase considerably once your CCJ is removed from your credit record. However, it is hard to be specific as credit scores are always dependent on a number of factors. On average, our clients' scores increase by 200 points.
A warrant of control gives court enforcement agents the authority to take goods from the defendant's home or business. Enforcement agents will try to either: collect the money you are owed. take goods to sell at auction.
A CCJ will lose you about 250 points. (For many CCJs, there will already be a debt with a default on your record, in this case a CCJ then increases the harm to your credit record, but not by as much as 250 points.)
You aren't off the hook for unpaid credit card debt after 7 years. If you are still within your state's statute of limitations, you may want to work with debt collectors to settle the debt rather than risk being sued.
In most states, the debt itself does not expire or disappear until you pay it. Under the Fair Credit Reporting Act, debts can appear on your credit report generally for seven years and in a few cases, longer than that.
In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.
If the bailiff cannot get payment, get into your house or seize any goods from outside your house they may refer your debt back to your creditor. Your creditor may then take court action, make you bankrupt, or in extreme cases, file for imprisonment.
If you keep ignoring letters and calls by debt collection agencies, your creditors have every right to sue you in a court of law. If a judgement is passed against you in court, then the debt collection agency may receive the right to seize your possessions or your wages in order to pay for the debt.
Always keep in mind that if the debt is not legally yours, a bailiff has virtually no power. They cannot force entry into your home or use a locksmith to get your front door open.
When does a CCJ become statute barred? It never does. But if the creditor hasn't taken any enforcement action in six years, they will need to apply to the court for permission if they want to enforce the debt by using bailiffs. This is unusual but if it happens to you, contact National Debtline.
CCJ stands for County Court Judgement and is more serious than a default. It means that your lenders have gone further down the legal route to try and get their money back.
Are debts really written off after six years? After six years have passed, your debt may be declared statute barred - this means that the debt still very much exists but a CCJ cannot be issued to retrieve the amount owed and the lender cannot go through the courts to chase you for the debt.
Bailiffs are only allowed to try to come into your home between 6am and 9pm. You shouldn't let a bailiff into your home - it's always best to try to sort out your debt by keeping them outside and speaking through the door or over the phone.
How long does it take to get a bailiff warrant for possession? The average timeframe to get a warrant of possession is around ten weeks.