Legal Orders for Unpaid Debts
A County Court Judgment (CCJ) or Decree in Scotland is a legal order issued by a court against a person who fails to repay a debt.
The Credit Impact
CCJs can have a severe impact on your credit score and make it difficult to obtain credit in the future.
Typically, CCJs remain on your credit report for six years, which can hinder your ability to access loans, credit cards, and other financial products.
Resolving CCJs promptly is crucial to minimise their impact on your creditworthiness.
Resolving a CCJ: Options, Actions, and Rebuilding Credit
Options for resolving a CCJ include paying off the debt in full, negotiating a settlement with the creditor, or disputing the judgement if you believe it was issued in error.
Paying off the debt in full can help satisfy the CCJ, and the court will update the records accordingly.
Negotiating a settlement with the creditor may involve agreeing on a reduced amount or a payment plan to satisfy the debt.
If you believe the CCJ was issued in error, you can request to have it set aside or apply for a Certificate of Cancellation.
Taking immediate action to address the CCJ is essential to avoid further legal consequences, such as bailiffs or enforcement proceedings.
Resolving the CCJ and demonstrating responsible financial behaviour going forward can help rebuild your credit and improve your credit score over time.