How Long After Default Can I Get A CCJ (And Why)?

Exact Answer: Six Years

The banking sector is one of the fastest-growing sectors all over the world. Government, as well as private banks, have been set up in different parts of the world. Banks have a lot of significance, and one of the primary significance is that they can help people by giving them loans. People trust banks and store money in banks.

CCJ is an abbreviation of Country Court Judgement and can only be issued in England and Wales. It is only after a person takes a loan that their creditor can apply for a CCJ. Banks or creditors do proper checking before giving a person any loan. But there arises a few cases where the debtor is declared bankrupt and cannot pay the creditor in any kind.

How Long After Default Can I Get A CCJ?

Country Court Judgement or CCJ can be issued after six years in case of an extended debt. In case a CCJ receives, the debtor has only about two weeks to respond. Ignoring the claim will only make the matter worse. By worse, it means that the court might order to pay the debt within a brief period with an unimaginable interest rate. Before the CCJ, the creditor has to send a warning to the debtor about the debt owed.

The time frame in which a person receives a CCJ is critical. The individual can challenge the court to prove them wrong, pay the total amount or a partial amount. But it is to be remembered that an individual can remove the CCJ from their credit profile if they pay back the owed money within thirty days. If they cannot pay back within thirty days, it can reflect on their credit profile for six years.

Events In Case Of CCJTime Duration
If the debt is not paidSix years
If the debt is paidLess than six years

The time duration to get a default is six years, whether you pay the debt or not. If you have paid the debt, it won’t be reflected in the CCJ for the time after it is paid. If the debt is not paid, it will be reflected for six years, and after that, when a new CCJ will be issued, it will not be added.

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Why Does It Take That Long After Default To Get A CCJ?

It is not always the case for a person to wait to get credit after getting a CCJ. As mentioned above, A person paying his or her debt on time will be eligible to get another credit or wait for six years. The person who receives the CCJ has a period of fourteen days in their hand to reply. In this case, not replying might become a burden later when paying the debt. The reply mainly includes how much money the person has with them that can be used to pay off the debt.

Issuing a CCJ is not an easy process. It takes time to happen. It is difficult for a person to pay back the money they owed in just a short period. If it a long debt, then it becomes near to impossible. To ease the matter, the debtor gets a time of six years. In that six years, the creditor cannot issue a Country Court Judgement against the debtor. Sometimes, a person may file for a defense against the CCJ if they disagree with it.

It takes that long after default to get a CCJ because of the paperwork involved. The CCJ can only be issued after the court has checked up all the documents and decided that the debtor owes money. The CCJ can be avoided if the debtor pays the money before it is issued. Even if a CCJ is received, paying straight up solves the matter.

Conclusion

Overall, it can be concluded that abiding by the law is the most and foremost thing for a person. He or she can be a creditor or a debtor, or an average person. Rules and regulations are the same for every person. When a creditor has issued a CCJ, and the debtor is ignorant about it, he or she can take legal action.

A person can get a CCJ after six years, not depending on whether the debt is paid. Charging Order and attach of earnings order is among the other actions which the creditor can apply to the court against the debtor. All these situations can be avoided if the debts are paid in time without any delay.

References

  1. https://en.cnki.com.cn/Article_en/CJFDTotal-JYXK200503028.htm
  2. https://www.tandfonline.com/doi/abs/10.1080/09718923.2006.11892547

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