County Court Judgements or CCJs are the result of any legal decision that has been handed down from a County Court, concerning a debt that is owed.
If payment is not forthcoming, a company that is owed money has the right to take the case to court. The court will then determine whether or not the debt is owed.
If the court decides that the debt must be repaid, then the party that owes the money will receive a County Court Judgement informing them that the original debt plus interest and charges is payable.
County Courts Judgements are registered with the county court system one month after the judgment has been issued, unless the debt is paid in full during that time. The County Court Judgement will also appear on credit records for six years. When applying for credit in the future, a County Court Judgement is likely to stand against you, as this information is available to lenders.
If the judgement is not paid the creditor can have recourse to a bailiff execution order and use this remedy to distrain over company assets to the value of the debt. Alternatively the creditor could instigate winding-up proceedings.
The best solution for dealing with CCJs is to avoid them completely therefore it is important to deal with pressing creditors and legal demands proactively.
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