CCJs in England and Wales
If you get a letter telling you someone is making a County Court Claim saying you owe them money, don't be alarmed. The Court will decide whether you have a debt to pay - and if so, how you should repay it.
Someone you owe money to (a 'creditor') can take a County Court action against you to claim the money. If you pay the amount you can avoid a hearing or judgment. If not, there'll be a simple court hearing in private. You can attend if you wish, or just send the information the court asks for by post.
The court doesn't find anyone 'guilty' or 'innocent', it looks at the facts and decides whether you owe any money, and if so, how you should repay it. After the hearing, the court may issue an order saying you must repay the debt. This order is called a CCJ and will either be for the amount agreed between you and your creditor or, if you can't agree, a payment set by the court.
If you have judgments from more than one creditor, the court may combine your debts and make an 'administration order' - saying you must make a single payment every month to be shared by all your creditors.
Unless you pay the full amount of the judgment within one month, your CCJ will be recorded on the Register of County Court Judgments for six years. Organisations such as banks, building societies and loan companies use the registered information to help decide whether to give you credit or loans, like a mortgage.
Debt Consolidation Explained contains general information only. We strongly advise you to seek qualified professional advice before taking any action.