If you have managed to enforce on a person or business that owes you money, you may wonder how much time you have to get your money. According to the Limitation Act, a creditor can only pursue an outstanding County Court Judgement for six years from the date of the judgement without having to ask for permission from the court.
If you want to recover money for a judgement that it is over six years old, you will need to ask the court for permission in order to be able to pursue enforcement action.
What can a CCJ be used for?
A County Court Judgement (CCJ) can be used by creditors against individuals or businesses who fail to pay money they owe. CCJ’s are used for:
- Consumer debt targets: including loans, credit cards, overdrafts, catalogues etcetera.
- Contracts between individuals and/or companies: For example, you can issue a plumber for defective work, or the plumber can sue you if you haven’t paid his bill.
Not all types of debt are covered by CCJ’s. For example, council tax debts are not subject to this kind of enforcement, but to a different court process, namely a liability order.
How long does a CCJ last?
A CCJ remains on record for six years and it is removed, if paid, within a month. The details of a CCJ may remain on the register for the full six years unless the amount is paid in its entirety within the first month, or the judgement is set aside. If it is not paid within a month, a CCJ will remain on the credit file for six years, and it will affect credit rating, making it harder to borrow money.
Where do you need to go to get a CCJ?
If you are owed money, and you haven’t been able to obtain payment from the debtor, considering taking court action is the next step. In order to get the CCJ on someone, you need to ask the court to collect payment from the person or business who owes you money. You can apply to County Court for this purpose whether you are owed by a business or an individual. This process is known as taking someone to a small claims court. You will need to pay a fee to start the process.
If you are claiming a fixed amount of money, you can make your claim online. You may have to go to a court hearing if the person who owes you money denies that fact and you disagree with their response. If your debtor doesn’t pay after you are awarded a judgement, you can ask the court to collect the money via further steps such as using bailiffs or enforcement agents. If you get paid, you must inform the court by updating your claim online or contacting the court if you used a paper claim form.