What happens to an unpaid CCJ after 6 years? - Carrington Dean (2024)

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In the UK, most unsecured debts have a limitation period of six years, meaning your creditor (the individual or business you owe money to) can no longer take legal action against you to recover the money owed.

However, your creditor may start the process of obtaining a CCJ against you before this time period has passed, rendering the standard six-year limitation period void.

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What is a CCJ?

A County Court Judgment (CCJ) is a type of court order a creditor may issue against you if you fail to keep up with agreed payments on a debt.

For credit agreements regulated by the Consumer Credit Act (1974), you must receive a default notice giving you a chance to make up the missed payments at least 14 days before action is taken.

Put simply, receiving a CCJ means the court has agreed you owe the debt and must repay the total amount in a single payment or in regular instalments.

Being informed that your creditor has taken legal action against you for an unpaid debt can be daunting, but responding to the initial claim quickly and effectively can help you resolve the problem or negotiate an alternative repayment plan that works for both parties.

County Court Judgments can be issued for a wide range of debts, but can’t be used to collect Council Tax arrears.

Instead, outstanding Council Tax debts are usually collected through a Liability Order, which is another type of court order that gives local councils the right to recover money directly though your wages or benefits.

How long does a CCJ last?

CCJs will remain on a debtor’s credit report from each of the main credit reference agencies (Experian, TransUnion and Equifax) for a total of six years from the date it was issued.

The only way to have a CCJ removed from your credit file is to repay the full amount owed within one month.

Where will my CCJ be listed?

When you receive a CCJ, it will be listed on your credit file and a public register known as the Register of Judgments, Orders and Fines from the Registry Trust for six years.

The Register of Judgments, Orders and Fines is publicly accessible for a small fee, but is usually only viewed by banks and lenders when reviewing applications for different types credit, such as loans and mortgages.

This means that, while it can affect your ability to secure credit, your friends, family, or colleagues shouldn’t be able to stumble upon your entry and find out you’re in debt or have a CCJ.

If you repay the full amount owed within one month, it will be removed from both your credit file and the public register, and it will be as if the CCJ never existed.

This is the best option if you admit to owing the money and the debt is relatively small, as it will prevent it from having a negative impact on your credit score and limiting your financial options for another six years.

How will a CCJ affect my credit score?

Having a CCJ on your credit file will significantly lower your credit rating, having a knock-on affect on your ability to access further credit for six years.

This can make it difficult, if not impossible, to secure a loan, mortgage, phone contract, and even a bank account during this time.

Even if you are approved for credit during this time, you will likely be subject to higher interest rates to balance the risk to the lender of you potentially missing payments or defaulting on your agreement.

Though not always the case, some employers and landlords may also check a debtor’s credit history before agreeing to hire someone or lease a property, and having a CCJ can negatively influence their decision.

The good news is, the impact of a CCJ on your credit score will gradually decrease over time. This means your credit rating is likely to improve as your CCJ ages and you repay the amount owed.

By following the terms outlined in your CCJ and avoiding missed payments, you can prove to lenders that you are capable of repaying your debts and are a responsible borrower.

Will my CCJ still be visible after six years?

After six years have passed, a CCJ will automatically be removed from a debtor’s credit record and the public register regardless of whether it’s been repaid in full, partially, or not at all.

This means lenders won’t be able to see your CCJ when deciding whether to approve you for credit and it shouldn’t affect their decision.

Once the CCJ has been removed, your credit score should also gradually improve, making you a stronger candidate for credit.

What happens if I ignore a CCJ for six years?

When you receive a CCJ, it can be tempting to just ignore and hope it goes away. However, while this might seem like a good idea at the time, it can cause further damage to your finances and credit score than if you were to just repay it.

For example, if you fail to make the agreed payments on a CCJ, your creditor may apply for a third party debt order, which gives them the power to freeze and take money directly from your bank account.

Unlike most unsecured debts that have a limitation period of six years, a CCJ also doesn’t have limitation period and can be chased for longer than six years.

During this time, your creditor can also take further legal action against you to force you to repay the total amount owed.

However, to enforce a CCJ after six years, creditors must make a formal application and get permission from the court.

Can a CCJ be enforced six years after it was issued?

Under the Limitation Act (1980), a CCJ can only be enforced within six years of it being issued.

After this time, your creditor can no longer pursue you for statute barred debt unless they are granted permission from the court to extend the CCJ.

A CCJ may be extended if it is on the verge of expiring and no payments have been made towards the debt.

However, for this to happen, your creditor must present a strong case for why the money wasn’t recovered within the time limit.