What Happens If You Don’t Pay a CCJ After 6 Years?

A County Court Judgment (CCJ) is a court order issued against you if you fail to repay money you owe CCJs can have serious financial consequences if left unpaid, even after the 6-year mark This article will explain what happens if you don’t pay a CCJ for over 6 years.

What is a CCJ?

A County Court Judgment, commonly known as a CCJ, is an order made by the County Court stating that you owe money to an individual or organisation

CCJs are issued if you fail to respond to correspondence from creditors about missed payments or don’t stick to a repayment plan. If you don’t repay the money or successfully defend the claim, the court will rule against you and formally demand payment by issuing a CCJ.

Once a CCJ has been issued it will be added to the Register of Judgments Orders and Fines, as well as your credit file for 6 years. This can make it difficult to access credit like loans, credit cards, and mortgages.

Why Would I Not Pay a CCJ?

There are a few reasons why someone may not pay off a CCJ:

• You Cannot Afford Repayments – Your financial situation changes and you can no longer afford the repayment plan. This could be due to unemployment, illness, or other reasons.

• You Dispute Owing The Money – You believe the claim made against you is unfair or inaccurate. However, you failed to successfully defend yourself in court.

• You Ignore The CCJ – Some people hope the CCJ will eventually expire and disappear. However, as we’ll explore, this is risky.

• You’re Unable To Pay – Certain individuals like the unemployed, bankrupt or those with minimal disposable income may be simply unable to repay CCJ debt.

What Happens After 6 Years If I Don’t Pay?

Many people assume that CCJ debts expire and become unenforceable after 6 years. This is untrue.

Although a CCJ will be removed from your credit file and the public register after 6 years, it can still be enforced and collected on.

Here’s what creditors and courts can do if you don’t repay CCJ debt after 6 years:

• Apply For Permission To Enforce – The creditor must make a formal application to the court for permission to enforce recovery of the CCJ debt.

• Further Court Action – If permission is granted, your creditor can take further legal action against you. This can include bailiffs seizing assets, attachment of earnings orders and bankruptcy petitions.

• Interest & Fees Accumulate – Any interest and fees attached to the CCJ debt will continue growing during the 6+ years it remains unpaid. This significantly increases how much you end up repaying.

• Long-term Credit Damage – Even after 6 years, the CCJ can be recalled by creditors and have an impact on your future credit applications.

• Statute Barred Debts Don’t Apply – CCJ debts don’t become ‘statute barred’ like regular unsecured debts. Your creditor retains the legal right to pursue you for repayment.

As you can see, failing to repay a CCJ – even after an extended period – comes with risks and should be avoided if possible.

Can I Remove a CCJ After 6 Years Without Paying?

Unfortunately, there is no way to simply remove a CCJ after 6 years without repaying the amount owed.

As we explored above, courts can grant creditors permission to continue enforcing collection of CCJ debts older than 6 years.

However, there are a couple of circumstances where you may get a CCJ overturned or revoked after 6 years:

• You Later Prove The Debt Was Invalid – If you can provide evidence you didn’t owe the money, you can apply to overturn the CCJ.

• You Didn’t Receive Notice of The CCJ – If it can be proven you weren’t properly notified of the claim or judgement, it may potentially be revoked.

• You Pay The Full Amount Owed – Paying the total balance due can allow you to apply for a Certificate of Satisfaction. This removes the CCJ from your credit file and public register.

Outside of these specific situations, there is no way to simply clear a CCJ after 6 years without repaying what you owe.

How Else Could a CCJ Impact Me After 6 Years?

As well as your credit being damaged, being pursued by bailiffs and facing legal action, an unpaid CCJ can impact your finances in other ways even after it surpasses the 6-year mark.

• Loan/Mortgage Applications – Lenders can still access records of CCJs older than 6 years and may deny you credit.

• Employment Opportunities – Some employers require credit checks during recruitment, which may show historic CCJs.

• Renting A Home – Landlords often check tenants’ credit files and CCJ history before approving tenancy.

• Bank Accounts – Banks sometimes decline account applications if they uncover past CCJs, defaults or court judgements.

• Interest/Charges Accumulate – Additional fees, interest, penalties and charges can grow for years if left unpaid.

• Court Appearances – You may be summoned to explain your non-payment in court even after the 6-year period.

What Are My Options for Repaying a CCJ?

If you want to repay your CCJ debt, there are a few potential options:

• Agree A Payment Plan – Contact the creditor to negotiate realistic instalment payments you can afford. Get any agreement formalised through the courts.

• Use Savings – If possible, repay part or all of the CCJ from your existing savings. This minimises interest and enforcement action.

• Borrow Money – Consider borrowing from family or taking out a consolidation loan to repay your CCJ debt in full.

• Remortgage – You may be able to release equity and use it to pay off the balance of the CCJ.

• Sell Assets – Selling valuable items like cars, jewellery or a second property can provide funds to cover a CCJ debt.

• Debt Management Plan – Debt management companies can negotiate reduced payments and allow you to repay CCJs gradually.

• Insolvency – Entering a form of insolvency like an IVA or bankruptcy may involve writing off some CCJ debts you cannot pay.

Getting professional debt advice is recommended to help you thoroughly explore suitable CCJ repayment solutions.

Could I Face Court or Bailiff Action?

Unfortunately, yes. If you fail to repay your CCJ or default on any agreed payment arrangement, your creditor can take legal action against you.

• Liability/Enforcement Order – This officially demands you attend court and explain why you haven’t paid.

• Bailiff Visits – Bailiffs may be sent to your home or business to seize possessions to cover the value of your CCJ debt.

• Attachment of Earnings – An order can be obtained to have CCJ payments automatically deducted from your wages.

• Freezing Injunction – Prevents you withdrawing money from bank accounts until the CCJ debt is repaid.

• Charging Order – Your creditor places a charge on your property or assets, entitling them to payment if sold.

• Bankruptcy Petition – Inability to repay CCJs and other debts may result in you being made bankrupt.

Responding swiftly to any court claim forms or communication about bailiff visits is advised to avoid further escalation.

Can I Avoid Getting a CCJ?

The best way to avoid getting a CCJ is to not fall behind on any loan or credit repayments in the first place.

But if you do begin struggling with debt, act quickly to avoid court action:

• Communicate with creditors early if you’re unable to make payments.

• Respond to any default notices within the required period.

• Agree reduced payment plans if you can’t afford full contractual amounts.

• Seek professional debt advice about the best solution for your situation.

• If you receive a Letter Before Claim, act immediately to resolve the dispute.

• Formally defend a Claim Form within 14 days to avoid a CCJ by default.

• Attend any court hearing dates to argue against judgement.

Essentially, engaging with creditors and courts at every stage can help avoid receipt of a CCJ.

• CCJs remain enforceable and can still legally be collected after the 6-year mark.

• Avoid assuming a CCJ will disappear after 6 years – pay if you’re able to.

• Non-payment after 6 years risks bailiffs, attachment of earnings orders and bankruptcy.

• Repaying the full amount owed is the only way to remove a CCJ after 6 years.

• Entering insolvency could potentially write off some unaffordable CCJ debts.

• Communicating with creditors and responding promptly to any court action is key to avoiding a CCJ.

Seeking professional debt help as early as possible gives you the best chance of tackling CCJs and avoiding escalating enforcement action.