How Long After A Debt Can A CCJ Be Issued (And Why)?

Exact Answer: 6 Years

In the 21st century, if any sector has had a boom in business, it is the banking sector. Banks are being set almost at every place which is creating a lot of jobs for unemployed people. Private and government, both types of banks are being set up. The interest rates may be different, by more or less each bank has the same kind of policies.

Banks have a lot of good things about them and loaning to fulfill a dream is one of them. But loaning can create difficult situations. If the debtor does not pay the money, then the creditor can file for a Country Court Judgement or CCJ after taking permission from the court. CCJ can be issued after 6 years in case of a long debt.

How Long After A Debt Can A CCJ Be Issued?

TypeTime
Small Debt< 6 Years
Long Debt6 Years

Country Court Judgement or CCJ can be issued after 6 years in case of a long 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 very short period with an unimaginable interest rate.

The CCJ can only be issued in England or Wales and no other places. In these types of situations, it is very important to seek help from a legal advisor. The legal advisor will always suggest answering the CCJ first as it might ease up the situation. The debtor lists up his or her possessions in form of Income and Expenditure format, to let the court know at the moment how much he can pay.

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Before the CCJ, the creditor has to send a warning to the debtor about the debt owed. The CCJ can only be issued after the court has checked up all the documents and decided that the debtor indeed 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.

The 6 years’ time is very crucial. If a debtor tries to get another debt, in the middle of debt, it will be nearly impossible for him or her to get that. The public register will hold the debtor’s name if he fails to pay the money owed. Generally, debt is kept secret from the public but if a second debt is taken while the first one is still not paid, then if the creditor asks for the file of the debtor, it will be shown to them.

Why Does It Take So Long To Issue A CCJ After A Long 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 he or she 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 6 years. In that 6 years, the creditor cannot issue a Country Court Judgement against the debtor.

In the case of joint debtors, both parties will receive a CCJ and are subjected to pay fifty percent each. If one of them pays before the 6 years, then he or will not receive any CCJ but the other person will receive the CCJ issued against him or her. There are cases where the debtor is not able to pay anything even after CCJ. In that kind of case, the tangible assets and any kind of money that he or she has in their home or office will be used to pay back the debt.

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Conclusion

CCJ is not a necessary process. It acts as a warning to debtors by their creditors who have failed to pay back the money they owed. If the debtors pay the money before the designated time, then the situation in which a CCJ is issued does not arrive. As mentioned above, seeking a legal advisor is the best option that a debtor can take in these situations.

Everyone faces problems in their life. It is not how difficult the problem is, but to what extent a person is willing to go to overcome the problem. CCJ is just like any other kind of problem if the right measures are taken against it.

References

  1. https://www.tandfonline.com/doi/pdf/10.1080/00221546.2003.11780854
  2. https://www.tandfonline.com/doi/abs/10.1080/09718923.2006.11892547