Debt resulting in County Court Judgements
Your debt will result in a County Court Judgement if you fall behind severely with your monthly repayments. If you seek debt advice early enough, you will be able to avoid matters reaching this stage.
Hiding your bills away in a drawer is not the answer. You will find that ignorance isn’t always bliss as creditors will refer your account to court to retrive any outstanding debt, resulting in long term damage to your credit file.
Expect one month’s notice to settle the debt in full and stop the CCJ from being issued. If you allow this time to elapse, a CCJ will be awarded and made available for other creditors to see. This information will remain on your credit file for the next six years, even if you make regular contributions at a later date. It will also be recorded on the Register of Judgements.
Alternatively, if you do manage to find a debt solutions to pay off the entire balance in full, a mark of ‘satisfied’ will remain against this entry for the remaining six years, thus making creditors aware of your reputation to repay debt.
A CCJ is one of the most crippling penalties that you can have on your credit file and you will find it virtually impossible to obtain credit for the duration of this penalty. If a creditor should take a chance on you, it is likely that any loan offers will come with high interest charges.
A CCJ requires immediate action so you will need to work out a payment plan which will be acceptable by your creditor. Do not let matters reach this stage. Debt management companies are there to prevent you getting those nasty little black marks on your credit rating and to make your file more credit worthy in the future.
Debt Advice News posted on 31/05/2007 07:02:55
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