Receiving a County Court Judgment (CCJ) can be extremely distressing, particularly if you receive one out of the blue or if you only later find out that one exists.
You may have received a couple of warning letters about a possible claim being issued against you and you chose not to act on these, or perhaps you received nothing at all. It may be that you moved house recently, or changed your company’s registered office address, only to find the CCJ after returning to pick up the post. Perhaps you saw a significant drop in your credit score, only to conduct a quick online search to reveal a hidden CCJ.
Sometimes the first time people become aware of a CCJ is when enforcement action is being taken against them. This could involve bailiffs attending their property, money being deducted from their wages, or charges being made over their property.
It is usually always better to deal with any threat of legal proceedings head on however sometimes people are simply not aware of the potential legal action against them. We frequently see incidences where clients are completely unaware of a claim having been issued against them, only to one day find out that a CCJ has been issued against their name. This has serious consequences for many aspects of their life. A CCJ affects your credit score, your ability to rent property or obtain a mortgage, and you could even be refused a job. These effects can occur regardless of the value of the judgment.
When a claim is issued at court, the claim documents are served on the defendant. The defendant then has 14 days to file a defence, or ‘acknowledge service’ to extend the period of time by which they must reply, by a further 14 days. If the defendant fails to reply within the strict timeframes, judgment can be automatically entered into against them (known as a ‘judgment in default’).
We are regularly instructed by businesses and individuals who find out that a creditor or claimant have obtained a judgment in default against them. If this happens to you, there may be steps you can take to better your position and we can guide you through these.
Most importantly, when a judgment in default is issued against you, you need to act promptly if you wish to have it removed (‘set aside’) from your record. If you do not, you risk the CCJ remaining on your record for 6 years, which can have a significant impact on your ability to gain credit.
To set aside a judgment in default, you must prove to the court that there are good reasons why the judgment should be set aside. Examples may include if the claim documents were sent to the incorrect address, or you filed a defence on time but it was never processed by the court, or perhaps you were away from your office for some time and only later picked up the court documents, but you feel you have a strong prospect of successfully defending the claim, if you had been given an opportunity to do so. Every case is different, and every case has different merits as to why a judgment should be set aside.
We have dealt with several CCJ matters in recent weeks, with CCJs having been issued against our clients for a whole variety of reasons.
When a client instructs us in this type of matter, we will review all of the relevant documents and have a consultation to assess and advise upon their position. We will strategise with the client to endeavour to put them in their strongest possible position, and provide advice on what steps need to be taken next. Usually this would involve writing to the claimant, or the claimant’s solicitors, to set out your case. In some incidences it may be appropriate to offer a settlement to the claimant in return for them agreeing to having the CCJ set aside, or in other cases we may set out the reasons why the CCJ should not have been made at all, and threaten court action if needed.
Our first port of call will be to try and come to a settlement with the other side but if this is not appropriate or successful, we are fully prepared to make an application to the court to have the judgment in default set aside. Given the serious ramifications of having a CCJ on your record for 6 years, this is often worth pursuing.
Whatever the reason why a CCJ has been issued against you or your company, we understand this can be stressful and we are on hand to assist. We have significant experience and success in dealing with these types of matters and finding the best solutions for clients. Please contact us on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.