CCJ confusion

hannahkaty

Hi,

I have two CCJ's on my credit file, both around 5 years old from when i was an idiot and ran away from debt i racked up.One has been satisfied, unfortunately i've not had the funds to settle my other one.

As i understand it from all the websites i've visited (stepchange.org, multiple credit score websites) a CCJ will 'drop off' a file from the date of the court judgement, whether it's been paid /satisfied or not.
https://www.stepchange.org/debt-info/ccj/how-long-does-a-ccj-last.aspx
https://www.clearscore.com/credit-score/what-do-defaults-ccjs-personal-bankruptcy-mean-for-finances

However, i spoke to a mortgage advisor today, (parents offering to help with a deposit so in very early days of looking if buying is even an option) and received totally contradictory advice on CCJs telling me that CCJ’s do not automatically “drop off” your credit file after "5 years." and that they actually come off your credit file 5 years AFTER you have satisfied them. (The advisor kept saying 5 years, when i mentioned 6 in my initial email to him, another confusion).

So now i'm a bit flummoxed, this isn't what any website i've looked at says, and also is different to everything i've read on here, unless i've missed something? Should i try to pay off my remaining one, and wait for it to drop off in another 6 years or is he incorrect?

[Deleted User]

It will drop after 6 years.

However they can apply again through the court to reinforce it and restart the 6 year clock again.

5 years only applies in Scotland I believe.

hannahkaty

thank you! That is what i thought both with the dropping off and that they could restart the clock. Now i'm questioning the knowledge of the advisor i was recommended....

Re them being able to start the clock again, as i understand it that's fairly unlikely (though not unheard of) as the claimant would need to say why they hadn't chased it in the previous 6 years?

Borealis

Hi Hannah,

My CCJ has been satisfied for two years and there's no point in beating around the bush: these things are miserable and have long-term repercussions (as I'm discovering - I'm in the same situation as you as a first-time buyer with a CCJ, though I've had an offer accepted on a property).

They drop off your credit file after six years, but only if it's been satisfied. You can count out getting a mortgage completely with a still-active CCJ, and you will need to wait a minimum of a year to get one after a CCJ has been satisfied (according to my mortgage adviser two years ago). That may be where the five years rather than six years comes from (i.e. satisfying the CCJ + one year).

Yes, pay off you remaining one. Just do it ASAP. Forget about trying to get a mortgage for now. The sooner you get the CCJ paid off the sooner the six-year credit history drop off countdown begins and lenders consider you financially responsible again. Getting my CCJ paid off was a relief like you wouldn't believe, I can imagine having it dropping off my credit history will feel even better.

Don't go on holiday, don't upgrade your car, don't upgrade your phone, don't spend a single non-essential penny and get a second job if need be - pay off the CCJ. Be religious about your finances - budget down to the penny so you know exactly what you've got to spend each month. Never, ever miss a payment. When checking your credit files, look for any inconsistencies (phone numbers, address history, electoral roll, whatever) and rectify them now. The sooner you do it, the better, so that when you look at buying a house you know that your credit history is as good as it can be.

I'll be frank, even with a two-year satisfied CCJ and a decent deposit saved up (and an otherwise perfect credit history asides from this blip), what you'll be offered mortgage-wise is pretty shoddy. Terrible rates (e.g. 5.5%), long terms (e.g. 30-35 years) and often significant arrangement fees. Do not underestimate how serious these !!!!!!s are. Sort it now.

sourcrates

Your advisors were talking rubbish.

A CCJ stays on your credit file for 6 years, satisfied or not, it is then removed automatically, and drops off your file forever, and cannot come back again, even if no enforcement action has been taken in the previous 6 years, and the creditor gains the approval of the court to enforce further, the CCJ does not return.

Judgement on a debt can only happen once, the limitations act no longer applies once legal action has been taken.

Gary is confusing the Prescription and Limitation (Scotland) Act 1973 with CCJ’s and defaults, for a CCJ it’s on your file for 6 years throughout the United Kingdom.

Quentin

!!! wrote: »

It will drop after 6 years.

However they can apply again through the court to reinforce it and restart the 6 year clock again.

5 years only applies in Scotland I believe.

No

A claimant can apply to "enforce" a ccj ( called a decree in Scotland) at any time during the 6 years.

But after 6 years in either country the ccj/decree drops off the record for ever and no more enforcement action can be taken through the court

(Though at that time although no more court action can follow a debt never "dies"!)

Benight

Quentin wrote: »

...
But after 6 years in either country the ccj/decree drops off the record for ever and no more enforcement action can be taken through the court...

Not sure of what the position is in Scotland, but in England & Wales a CCJ can be enforced at any time, but after 6 years it will need the court's approval

https://www.nationaldebtline.org/EW/factsheets/Pages/time-limits-for-recovering-debts/statute-barred-debt.aspx

(probably wishing for an explanation as to why a delay of 6 years has occurred without any enforcement)

In fact the CAB imply the court's permission is only for use of bailiffs after 6 years
https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-your-debts/check-if-you-have-to-pay-a-debt/

.. But I thought it was for all forms of enforcement after 6 years. (which may be wrong)

Either way, it begs the question why anyone would spend their time effort and most importantly their own money securing a CCJ, and then waiting over 6 years to enforce it despite it not having been paid.
The other thing to remember, as I understand it, is that statutory interest (if part of the judgement) ceases 6 years after the judgement ... and I don't believe that can be reactivated even by the court.
(To clarify, if the CCJ is not settled until 7 years after it was made, it can only attract the maximum 6 years statutory interest from the CCJ date)

Actually this site also says it's only use of bailiffs after 6 years that needs the court approval (and that refers readers to nationaldebtline)
https://debtcamel.co.uk/statute-barred-debt/
whilst other enforcement action presumably can still occur without court approval

Benight

Lots more authority/case law referred to here for those so inclined...

https://uk.practicallaw.thomsonreuters.com/5-505-6193

including

Case law confirms that if a judgment debtor wants to challenge enforcement on the basis of delay, crucial to the success of that argument is the extent of prejudice to the debtor by reason of the delay, and there must be compelling evidence of prejudice

This page similarly asserts that enforcement of an existing judgement is 'execution', and not 'fresh action' and therefore permitted
https://www.kjplaw.co.uk/limitation-on-enforcing-judgment-debts/

Quentin

Benight wrote: »

Actually this site also says it's only use of bailiffs after 6 years that needs the court approval (and that refers readers to nationaldebtline)
https://debtcamel.co.uk/statute-barred-debt/
whilst other enforcement action presumably can still occur without court approval

As posted, a debt never dies, (,you could send the boys round anytime to collect!)

But a ccj does after 6 years

Benight

Quentin wrote: »

As posted, a debt never dies, (,you could send the boys round anytime to collect!)

But a ccj does after 6 years

A CCJ does not die after 6 years, it never dies, but it does fall off the credit file and public registry after 6 years.

Legal enforcement does not include sending the boys round.

Quentin

Of course it doesn't cover sending the boys round

The point being made is that although the ccj does die after 6 years the debtor still owes the money until it's paid!

Despite what you say, after 6 years a ccj is expunged from the records