LEARN ABOUT THE RISK OF NON-PAYMENT
Legal Action, County Court Judgements, Consequences of a CCJ
If I don't pay my debt, what could happen?
Legal Action
If you continue not to pay, the issuer might take legal action through the County Court. They will issue a County Court Claim Form, giving you the opportunity to respond.
Ignoring the claim could result in a County Court Judgment (CCJ) against you.
What is a County Court Judgment (CCJ)?
A County Court Judgment (CCJ) is a legal decision made by a county court in the United Kingdom against an individual or business that owes money but has failed to repay it. It is often issued after a creditor takes legal action to recover unpaid debts and wins the case in court.
​Potential Consequences of a CCJ
Credit Impact: A CCJ can severely impact your credit score, making it harder to obtain loans, mortgages, or financial products.
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Public Record: The CCJ will be listed on the Register of Judgments, Orders, and Fines for six years.
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Enforcement: If the CCJ is not paid, the issuer may enforce the debt through measures like:
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Bailiff action: Court-appointed bailiffs can visit your home to collect the debt or seize goods.
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Wage garnishment: Your employer may be instructed to deduct payments directly from your salary.
Freezing bank accounts: Funds in your account could be frozen or deducted to satisfy the debt.
What if I receive a County Court Claim Form?
You have several options depending on how you would like to proceed with the County Court
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a. Admit the Claim (You Agree You Owe the Money) Complete the Admission Form (N9A) and send it to the claimant or the court (as instructed).Propose a repayment plan if you can’t pay the full amount at once.
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b. Dispute the Claim (You Don’t Agree You Owe the Money) Fill out the Defence Form (N9B) and return it to the court within 14 days. Provide reasons for disputing the claim and include any evidence. If you need more time, submit the Acknowledgment of Service (AOS) within 14 days, which extends your deadline to 28 days.
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c. Partially Admit the Claim Complete both forms N9A and N9B, admitting part of the amount and disputing the rest.
d. Ignore the Claim (Not Advised) If you ignore the claim, the court will issue a default judgment against you, which can lead to enforcement actions like wage garnishments or bailiff visits.
Need Help finding Advice?
Citizens Advice
Step Change Debt Charity
National Debtline
If you're dealing with a debt collection issue, it's essential to seek help and explore reliable legal advice resources.
Websites like Citizens Advice and StepChange offer free and impartial advice tailored to your situation. They can help you understand your rights, handle communications with debt collectors, and explore potential solutions.
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Utilizing these resources ensures you're informed and prepared to take the right steps in resolving your debt concerns confidently.