How long do CCJs or bankruptcy remain on my credit file?
Key takeaways
Unaddressed CCJs can severely damage your credit score, affecting future borrowing capabilities
A CCJ remains on your credit file for six years unless the debt is paid in full within a month
An IVA offers more control over assets and sets a repayment plan without freeing you from debts
It’s important to understand the implications of CCJs and bankruptcy on your credit and to take steps to mitigate their impact
What is a CCJ?
A County Court Judgment (CCJ) is a court order issued in England and Wales when a court decides that you owe money to a person or organisation and must repay it.
A CCJ can affect your credit rating and make it harder to take out a credit card or loan, get a bigger overdraft or borrow for a mortgage. Lenders may see the judgment as a sign that you've had difficulty repaying debts, although each lender has its own criteria.
In some cases, you can ask the court to set aside a CCJ. This may be possible if you don't owe the money or didn't receive or respond to the original court claim. You can apply using form N244, but the court will consider the circumstances and decide whether to set the judgment aside.
If you believe a CCJ has been issued incorrectly, act promptly and seek advice about your options.
How do you actually get a CCJ?
A CCJ usually follows a legal claim by someone who believes you owe them money. If you receive a court claim, it's important to respond by the deadline shown on the claim form.
The process generally works as follows:
You receive a claim. A creditor or another organisation starts court proceedings to recover money they say you owe. You'll receive a claim form explaining the amount claimed and how to respond.
You respond to the claim. You can admit that you owe the money, dispute the claim or, where appropriate, offer to pay a different amount or in instalments. Follow the instructions and deadline on your paperwork.
The court decides what happens next. If you don't respond in time, the claimant may ask the court to enter judgment against you. If you dispute the claim, further steps or a hearing may be needed.
In many cases, you have 14 days from service of the claim to respond. Depending on the type of claim and the response you make, you may be able to obtain an additional 14 days. Always check the deadline and instructions on your actual claim form.
If you receive a claim that you don't understand, get advice as soon as possible. Ignoring it could result in a judgment being entered against you. The process is different in Scotland, where a CCJ is not the term used for a Scottish court money judgment.
Can I get a CCJ off my credit file?
Yes, you can get a CCJ removed from your credit file in certain circumstances. If you pay the full amount within one month of the judgment, you can apply for a certificate of cancellation.
If you pay after one month, the CCJ will normally remain on your credit file for six years, but you can have it marked as satisfied.
England and Wales
If you pay the full amount within one month of the judgment, you can apply to have the CCJ removed from the Register of Judgments, Orders and Fines. You'll need to apply to the court for a certificate of cancellation.
If you pay the debt in full after the first month, you can apply for a certificate of satisfaction. This confirms that you've paid the judgment, but it doesn't remove the CCJ from your credit file before the six-year period ends.
You can apply using form N443. The court fee is currently £19. You'll need to provide evidence of payment where available, or explain why you can't provide it.
If you don't pay the full amount within one month, the CCJ will usually remain on the register and your credit file for six years from the judgment date. It should then be removed automatically.
If the judgment was entered incorrectly or you didn't receive the original claim, you may be able to apply to have it set aside. This is different from simply paying the debt, and the court will consider whether the conditions for setting aside the judgment are met.
Scotland
Scotland has a different legal system, so the process for dealing with court judgments differs from England and Wales. A Scottish money judgment is generally called a decree and is dealt with through the Scottish courts.
Satisfied versus unsatisfied CCJs
A satisfied CCJ means you've paid the amount ordered by the court. An unsatisfied CCJ means the full amount remains unpaid.
Having a CCJ marked as satisfied doesn't erase the judgment from your credit history, but it shows lenders that you've settled the debt.
This may be viewed more favourably than an outstanding judgment, although lenders make their own decisions.
How badly does a CCJ affect my credit?
A CCJ can make it harder to obtain credit because lenders may view it as evidence that you've struggled to repay money. It can affect applications for loans, credit cards, mortgages and other financial products.
However, a CCJ doesn't automatically mean you'll be refused every form of credit. Lenders consider your wider financial circumstances, including your income, existing debts, repayment history and their own lending criteria.
A CCJ may also affect rental applications where landlords or letting agents carry out credit checks.
If you don't pay a CCJ, the creditor may take further legal steps to recover the money. Depending on the circumstances and the court's authorisation, this could include applying for enforcement by bailiffs or other enforcement agents.
In qualifying cases, a creditor may also pursue bankruptcy proceedings, but this requires a separate legal process.
If you're struggling to pay, don't ignore the judgment. You may be able to ask the court to vary the payment terms or arrange instalments you can afford.
How can I check if I have a CCJ against me?
You can check whether a CCJ has been registered against you by searching the Register of Judgments, Orders and Fines through TrustOnline, which is operated by Registry Trust.
The service charges a fee for searches. A single search for a person in England and Wales currently costs £6, while a multiple search costs £8. Other search types and jurisdictions may have different fees.
You can also check your credit report through a credit reference agency, although the information available may differ between agencies.
If you discover a CCJ you weren't aware of, check the details carefully. You may be able to identify the judgment and the claimant through the register or by contacting the relevant court.
How can I find out what my CCJ is for?
If you find a CCJ on your credit report but don't recognise it, search the Register of Judgments, Orders and Fines through TrustOnline. The register can provide details that help you identify the judgment, including the court and case information.
You can then contact the relevant court to ask about the case and find out which creditor made the claim. Have any reference numbers from your search available when you contact the court.
If the CCJ relates to a debt you don't recognise, or you believe you didn't receive the original claim, seek advice about whether you can challenge the judgment. Don't assume that paying the amount is your only option if you believe the judgment was issued incorrectly.
How long will a CCJ stay on my credit file?
A CCJ usually stays on your credit file for six years from the date of the judgment, unless you pay the full amount within one month and successfully apply to have it removed.
If you pay the debt after the first month, you can apply for a certificate of satisfaction to show that the judgment has been paid. The record will normally remain on your credit file until the six-year period ends.
Once the CCJ has been removed, you can continue to improve your credit profile by making repayments on time, keeping your credit report accurate and managing any existing borrowing responsibly.
Can I negotiate how I repay a CCJ?
Yes, you may be able to ask the court to change the repayment terms of a CCJ if you can't afford the amount ordered. You should act as soon as possible if the current payments are unaffordable.
If you receive a claim before a judgment is made, you may be able to offer instalments or propose a different amount, depending on the circumstances. If the judgment has already been issued, you can ask the court to vary the payment terms.
You'll generally need to provide information about your income, essential spending, debts and what you can realistically afford to pay. The court will consider your circumstances before deciding whether to change the terms.
Don't simply stop making payments without seeking advice. If you can't afford the repayments, contact the court or a free debt advice service to understand your options.
Is a CCJ a criminal record?
No, a CCJ is a civil judgment, not a criminal conviction. It relates to a dispute about money owed rather than a criminal offence.
However, if you don't comply with a CCJ, the creditor may apply for further enforcement action. Depending on the circumstances, this could include:
Enforcement agents or bailiffs: a creditor may be able to apply for authorised enforcement agents to recover the debt or take control of goods, subject to the relevant legal rules.
Deductions from earnings: in some circumstances, a creditor can apply for an attachment of earnings order, allowing money to be deducted from your wages.
Other court enforcement: creditors may be able to use other legal methods to recover the money, depending on the type of debt and your circumstances.
These measures aren't automatic consequences of every CCJ. The creditor must follow the appropriate legal process, and different enforcement methods have different requirements.
If you're struggling with repayments, free debt advice can help you understand your rights and the options available to you.
Does a CCJ work differently in Scotland?
Yes. Scotland has a different legal system, and the equivalent of a CCJ is generally known as a decree. Money judgments are issued through the Scottish courts, including sheriff courts.
As with a CCJ in England and Wales, a decree can affect your credit file and make it harder to obtain credit. Scottish decrees can generally remain on your credit file for six years from the date of judgment, whether or not the debt has been paid.
If you're dealing with a decree, seek guidance specific to Scotland because the procedures and terminology differ from those in England and Wales.
Does bankruptcy come off your credit file?
Yes, bankruptcy is normally removed from your credit file six years after the date of the bankruptcy order. This is generally the case even if you're discharged from bankruptcy earlier.
In England and Wales, most people are automatically discharged from bankruptcy after 12 months, although this can take longer if they don't cooperate with the official receiver or trustee.
Discharge means that the bankruptcy restrictions usually end and you're released from most of the debts covered by the bankruptcy. However, the trustee may continue dealing with assets that formed part of the bankruptcy estate, and some payment arrangements can continue after discharge.
Your credit file won't necessarily update automatically when you're discharged. Check your credit report and contact the relevant credit reference agency if the information needs correcting.
Can I clear bankruptcy off my credit file?
You generally can't remove an accurate bankruptcy entry from your credit file before the six-year period has ended. However, you can take steps to make sure your records are accurate and begin rebuilding your credit profile.
Once you've been discharged, check your credit reports to make sure the information is correct. If your bankruptcy status hasn't been updated, contact the relevant credit reference agency and provide supporting evidence if requested.
You can also work on rebuilding your credit by registering on the electoral roll, paying bills and existing credit commitments on time, and checking your reports for errors.
If you're able to borrow, you may find that fewer products are available or that interest rates are higher. Lenders have different criteria, so compare your options carefully and make sure any borrowing is affordable.
Will bankruptcy wipe out my CCJs?
Bankruptcy can deal with many debts that existed before the bankruptcy order, including qualifying debts covered by CCJs. However, this doesn't mean that every debt is automatically written off, and some types of debt are excluded from bankruptcy.
A CCJ that's covered by bankruptcy may still remain on your credit file for the original six-year period. Bankruptcy itself can also stay on your credit file for six years from the date of the bankruptcy order.
If you have both a CCJ and bankruptcy on your record, check your credit reports to make sure the information is accurate. If you're unsure whether a particular debt is covered by bankruptcy, speak to a qualified debt adviser.
Is an IVA better than bankruptcy?
An Individual Voluntary Arrangement (IVA) may be a suitable alternative to bankruptcy for some people, but the right option depends on your financial circumstances.
An IVA is a formal agreement with your creditors to repay an agreed amount over a set period. It can provide a clear repayment plan based on what you can afford, but it doesn't automatically write off every debt or guarantee that you can keep all your assets.
Bankruptcy is a separate legal process that can involve assets being used to repay creditors. The consequences for your home, possessions, income and future borrowing can vary depending on your circumstances.
Both options can affect your credit file and future borrowing. Before deciding, seek free, independent debt advice so you can compare the available solutions and understand the consequences.
Where can I get free debt advice?
If you're struggling to repay a CCJ or other debts, you don't have to work through your options alone. Several organisations offer free, confidential debt advice to help you understand your situation and decide what to do next.
StepChange Debt Charity: call 0800 138 1111 for free debt advice. Its online service is also available at StepChange.
National Debtline: call 0808 808 4000 for free debt advice in England and Wales, or visit National Debtline.
Citizens Advice: call the relevant service for your nation or use its online advice service. In England, call 0800 144 8848; in Wales, call 0800 702 2020; in Scotland, call 0800 028 1456. You can find more information at Citizens Advice.
PayPlan: call 0800 316 1833 or visit PayPlan for free debt advice.
Opening hours vary, so check each organisation's website before calling. If you're in Scotland or Northern Ireland, make sure you receive advice that applies to the debt solutions and legal processes available where you live.
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