What could happen after a county court judgment is issued

Posted by George Coburn in Dealing with Debt on 16 January 2017 - George is a Credit Analyst at checkmyfile

Once a court judgment has been issued but the individual still refuses to pay the outstanding debt or come up with an agreement to clear it, the claimant has a number of legal remedies available to them through the court systems.

A county court judgment (CCJ) itself is simply an acknowledgement from the courts that the debt is owed to the claimant. From the debtor’s perspective, the presence of the judgment itself on their credit file will make obtaining even basic credit difficult but from a debt collection view, the claimant can escalate the judgment to help the enforcement of the debt.

The claimant can apply for a Warrant of Control (through County Court) or a Writ of Control (by escalating to the High Court) and these allow the claimant to take control of goods from the debtor. With the risk of losing possession of their belongings, the threat of the removal of goods increases the chance of payment.

Since Writs of Control are issued at a higher level, a High Court Enforcement Office (HCEO) who enforces the writ has greater powers than someone working for the county court and this type of enforcement has been popularised by TV programs like ‘Can’t Pay, We’ll Take It Away’ and ‘The Sheriffs Are Coming’.

Where the debtor owns assets such as a property or shares, the claimant can apply for a charging order against them. The asset then cannot be sold without the claimant being notified and when it does get sold, the claimant gets paid out of the proceeds. If someone continues to refuse to pay the outstanding debt, the claimant can then apply to have the asset sold, which means the person runs the risk of losing their home over it.

If the debtor has an asset belonging to the claimant, for instance a leased car, the claimant can apply through the courts to repossess it. Following this method, a claimant can also state they’d accept a particular asset from the debtor in order to clear the debt.

Although quite a costly method of recovery, in tenancy agreements, if the tenant has stopped paying the landlord, they can apply for a receiver to collect payments on their behalf. Since a third party gets employed to collect, this method results in the claimant receiving less than they would normally because the receiver would take a percentage of what is recovered.

As long as the debtor isn’t self-employed, the claimant can apply for an attachment of earnings order against the individual and this would result in a percentage being deducted each month from their wages by their employer and paid to the claimant. There will be a certain percentage of someone’s income known as protected earnings that is safe from the order, but the threat or embarrassment of letting your employer know of the pending order is often sufficient for the debtor to pay the claimant.

Often considered a last resort, where all else fails, the claimant could either force the debtor into insolvency or they may actively enter one if they cannot pay how much is owed. There are three main types of insolvency in England; Bankruptcy, Individual Voluntary Agreement (IVA) and Debt Relief Orders (DRO).

Each will have its own criteria and some benefit the claimant more than others. For instance, with a bankruptcy, a consumer’s assets will be liquidated and split between their creditors whereas with an IVA, the debtor agrees to pay a percentage owed to creditors. Since the payments are agreed by the debtor, they are usually able to keep their property as not all of their assets are sold.

Check Your Multi-Agency Credit Report

30 Day Free Trial

Does a Debt Management Plan Affect Your Credit Rating?

If you’re feeling increasingly overwhelmed by debt and aren’t sure what steps you can take next, the most important thing to remember is that there is plenty of help available and different solutions designed to get your finances back on the straight and narrow.

Published on 18 Jun 2019 by Kevin Pearce

Full Article

Late Payments & Defaults: What's The Difference?

When a lender checks your Credit Report, one of the most important elements it considers is payment history as reported to the Credit Reference Agencies. On a perfect applicant’s Credit Report, every credit account would be reported with a clean payment history, indicating that they are a low risk to the prospective lender, but in the real world this isn’t always the case.

Published on 23 Apr 2019 by Tom Blandford

Full Article

Do I Owe a Debt If It's Not On My Credit Report?

Information that appears on your Credit Report should (in most cases) follow a fairly predictable lifecycle. But don’t think that if an unpaid debt no longer shows up, you’re no longer responsible for it.

Published on 21 Apr 2019 by Tom Blandford

Full Article

Do I Have a Default? How to Find Out

For lots of lenders, coming across a Default on your Credit Report is a troubling sign. It’s certainly more serious than a missed payment or arrears on your file, which are likely to have less of an impact on your chances of being approved. A Default represents a key moment in the eyes of a lender: it shows that on a previous credit agreement you stopped being a borrower and became a debtor.

Published on 29 Mar 2019 by Jamie Mackenzie Smith

Full Article

Do I Have a CCJ? How To Find Out

If you have a County Court Judgment (CCJ) in your name, it can have a serious impact on your Credit Score and ability to borrow for the entire time it is active, as well as potentially affect the outcome of the checks carried out by prospective employers, landlords and insurers.

Published on 26 Mar 2019 by Jamie Mackenzie Smith

Full Article

How Bankruptcy Affects Your Credit Rating

In terms of negative information that could appear on your Credit Report, evidence of bankruptcy or other forms of insolvency is about as serious as it gets and it’s likely to adversely affect your ability to take out new forms of credit for a considerable amount of time.

Published on 7 Mar 2019 by Tom Magor

Full Article

Insolvency and its effect on your credit score

Contrary to the belief of some, insolvency is not a ‘get out of jail free card’. When you are declared insolvent, the entry remains reported for six years on your Credit File and will continue to pose a significant barrier to your chances of obtaining credit – even after the insolvency is discharged.

Published on 30 Jan 2019 by Tom Blandford

Full Article

Can you go to prison for debt

The short answer is: yes, you can go to prison for debt, but only if you fail to pay your council tax, any magistrates fines, TV license or fees relating to a motoring offense, and even then there are plenty of methods that are usually tried before a prison sentence is carried out.

Published on 22 Aug 2018 by Barry Stamp

Full Article

Northampton Court CCJ – Why is it on my Credit Report?

If you’ve been issued with a CCJ, chances are that it could appear on your Credit Report as having come from Northampton County Court Business Centre (CCBC), even if you or the claimant have no ties with Northampton whatsoever.

Published on 31 Jul 2018 by Jamie Mackenzie Smith

Full Article

What Happens When You Miss a Payment?

Late payments are a reasonably common entry on Credit Reports. They can occur against all kinds of credit agreements: everything from mortgages to store cards and unless you have a Direct Debit set up to make repayments automatically each month, you’re reliant on remembering to physically make your repayments each month. For a lot of people, this is where mistakes happen.

Published on 6 Jul 2018 by Kiah Phillips

Full Article


We are rated number 1 for customer service on