What is a county court judgment in the UK? Can I stop it?

It's an order the court grants if you owe money to someone and fail to pay the debt. This can significantly impact your credit rating or credit score.

This process can happen when a creditor takes you to county court for a debt, and the court rules that you owe the money. The term usually used is a judgment granted against you.

That’s keeping it simple, as we like to do. However, it’s not always as straightforward as that. There is a process before you get to this stage. Hopefully, you’re at a stage before the CCJ has been granted. For example, you may have only received the claim form or are worried about the prospect of judgment against you.

Whatever your position, you’ve come to the right place. The first thing to understand is that you should not ignore the situation. Instead, you need to understand the process...

It’s important to know that even getting to the stage of court action generally means that one or both parties have been unreasonable, has not been able to resolve the situation, or the party owing the money has not responded or made payments.

For example, to get to the stage of court with unsecured debt means you have not communicated with the creditor and have not been making any payments towards the debt.

Let's break this down so you know what to expect. When you receive the claim form, you will usually see:

• The name and address of the claimant – this is who is taking you to court. Depending on the situation, it could be a person or a business.
• Address for sending documents and payments (if different) – you'll find that this will usually be a solicitor’s details. Claimants generally instruct a solicitor to manage the situation. If this area is blank, it's likely that the claimant has not instructed a solicitor. This may be because the claimant cannot afford a solicitor or wants to push you to contact them/settle the debt. In other cases, they may believe their case is so strong that they don’t require a solicitor to win, even if you decide to appoint one. If the claimant is a solicitor, you would expect this area to be blank.
• Your details as the defendant - these are your details: your name/company name and address. Make sure you check that this is correct. If the name written is not yours or your company's, you should send the court papers back marked as incorrectly sent.
• The particulars of claim – this is the main part of the claim form and will include the reasons the claim has been brought before the court, the timeline, account details if applicable, and the amount being claimed. You should read this area carefully to see if you agree or disagree with what the claimant is claiming. This will help shape your defence if you intend to defend the claim.
• The claim number – this is the reference number for this case. You must include this number when communicating to the court or the claimant about this case.
• Issue date – this is the date that the claim form was issued. You’ll use this as the start date for process timelines. Don’t worry if that sounds confusing, as it will make more sense a little later...
• The court details – If you need to write to or phone the court, these are the details you will need to use. They will detail the court's name, address, and phone number, as well as where the claim has been filed or the court assigned to administer the case.
• How much the claim is, including costs – this is the amount that the claimant expects you to pay to settle the claim.

This is a very important question. The court works on deadlines; if you miss them, it can be complicated to reverse any action or judgment.

Earlier, we mentioned that you need to take note of the ‘issue date’. Here’s why:

You have 14 days from the issue date to provide an initial response. Whatever your response is, you need to make sure it is sent to the court via post or submitted online within this time frame.

If you plan to defend the entire claim and require more time to prepare your defence, you can extend the time to file the defence by submitting the ‘Acknowledgment of Service’ form within 14 days. This will grant you an additional 14 days, giving you a total of 28 days to file your defence.

We’re guessing you want to know what your response options are. Keep reading. We got you...

You may want to admit that you owe the debt (admit the claim), but you need time to pay - you will need to complete and send admission form N9A. Specify how much you intend to pay via instalments or on what date you believe you can settle the debt in full.

There is also an income and expenditure form if you want to complete it. Alternatively, you can complete our budget planner and attach it to your form. Depending on your response, the court may temporarily pause the claim (a “stay”).

You can admit part of the claim – you might believe you owe an amount but not the amount claimed by the claimant. Cases are not always black and white, so you need options and flexibility. In cases like this, you must complete and send form N9A with the amount you believe you owe.

You’ll also need to send the defence and counterclaim form N9B. Remember, if you have completed and sent the acknowledgment of service form, you will have 28 days from the claim issue date to file form N9B. Do note - the remaining amount that you believe you do not owe may still have a CCJ granted against it if you lose the argument.

All making sense so far? Ok, let’s continue...

Let’s say you dispute the claim and want to make a counterclaim. Form N9B is the one for you. You must complete it and file it with the court within 14 days of the issue date or 28 days of the issue date if you have filed an acknowledgment of service.

You can still use this form if you do not want to counterclaim.

If you need that extra 14 days to file a defence, here is the acknowledgment of service form we keep mentioning.

Last but not least is option five: do nothing (we don’t recommend this choice). If you pick this option, you may have judgment entered against you.

So, what happens if you defend the claim?

The court prefers not to have cases brought before them if it can be avoided. A court case is the last resort, so the court offers another option: mediation.

This is usually done via phone by a mediator from the court. It’s often suggested if you defend the claim. The court will speak to both parties to find a resolution without a court hearing. If either party refuses mediation, the court may want to know a good reason why.

You may not think you owe the money, but there may be undeniable proof that you do. Don’t worry, as you may still be able to stop the CCJ during mediation by suggesting things like:

• Agreeing to pay a reduced amount as a settlement
• Agreeing to pay the total amount but at a later date
• Agreeing to a legally binding agreement to pay in monthly instalments over a defined period

You may also have undeniable proof that you do not owe the money. Therefore, the claimant may withdraw the claim as a result of mediation.

If there is no resolution after mediation, both parties will be given a hearing date to argue it out in court.

Don’t stress! If you have received a letter from the court saying you have had judgment granted against you, it’s essential to know a fact that many people do not know. It takes one month for the judgment to be registered on your credit file.

What does that mean for you? If you can pay the full amount off within that time period, it will be as if the case never happened.

Here are some important steps to follow:

• Make sure you make the payment in a way that gives you proof that the payment has been made (i.e. electronic transfer)
• Get a letter or email from the claimant confirming that they have received the payment.
• Contact the court before one month has passed to inform them that the debt is now clear, so the CCJ should not be registered. They may ask for proof and/or confirmation from the claimant.
• This part is optional, as there’s usually a fee attached. Using this form, obtain a Certificate of Cancellation from the court. If you find the CCJ has shown up on your credit file, you can use this as proof to send to any credit reference agency.

If the full payment cannot be made within the one-month window, the CCJ will be recorded on your credit file and the Register of Judgments, Orders and Fines for six years. Even if the full payment is made after this period, the mark will still remain but will be shown as satisfied on your credit report.

The good news is that the mark will be removed from your credit file after six years, regardless of the debt status.

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.