If you have a CCJ, your creditor has a few options open to them to enforce payment. The most common include applying for payment direct from your wages or securing the debt against your property.

Included in this article:

• What is an attachment of earnings
• Securing a CCJ debt with a Charging Order
• How to reduce your CCJ payments
• Never ignore a CCJ

Want help on dealing with a CCJ? Give us a call (0800 077 6180) or complete the form below to speak to one of our experts.

What is an attachment of earnings

A CCJ (County Court Judgment) is an order from the court stating that you must pay a debt which you owe.

If you refuse to, cannot or simply don’t pay the Judgment a creditor can take further action against you.

A key option open to them is applying to the court for an attachment of earnings. If this is granted, your employer has no choice but to deduct the ordered payment from your wages. This money is paid directly to your creditor.

This can be very serious as you will have less money each month. Budgeting for normal living expenses will therefore be harder.

The only way to change or stop the payment is by making a special application to the court. Alternatively, you will need to consider using a formal debt management solution such as an IVA or bankruptcy.

An IVA can overturn an attachment of earnings. It will enable you to reduce all your debt payments to manageable and sustainable amount.

Securing a CCJ debt with a Charging Order

If you are a home owner and have a CCJ, the creditor can apply to the court to secure the debt against your property using a charging order. A debt which has been secured in this way cannot be included in an IVA or even bankruptcy. You should be aware of the rules on the application for charging orders.

Once a charging order is granted, the debt will remain secured against your property until it is either paid in full or your house is sold. However interest cannot be added to a charging order unless the debt is unregulated (ie not regulated by the consumer credit act).

A creditor cannot force you to sell your property just because they have a charging order. However when you sell, their debt would be paid before you receive any remaining equity.

How to reduce your CCJ payments

If you are finding the monthly payments to the CCJ unaffordable you can apply to have them reduced or even suspended for a period of time.

Maintaining the payments ordered by the court is very important as it reduces the enforcement options open to the creditor. If you keep up the payments, a creditor will not be able to ask the court to send bailiffs to your home or set up an attachment of earnings.

To reduce or suspend your payments you can apply to the court using an N245 Form. You will need to include details on the form of your income and expenditure. Importantly, you will disclose any other debts you have, so that a realistic monthly payment can be agreed.

A CCJ can be included in an IVA. This would reduce your monthly payments and may also result in some of the debt being written off.

Never ignore a CCJ

Before a CCJ is issued against you, you will always receive notice from your creditor’s solicitor. It is extremely important to respond to this by explaining your financial situation and making an offer of reduced monthly payments.

If a CCJ is then issued against you it is vital that you do not ignore it. Doing nothing could open yourself up for further legal action. This could include money being taken directly from your wages or the debt being secured against your property if you own one.

Are you struggling to pay a CCJ? Give us a call (0800 077 6180) or complete the form below. The advice is free and confidential.