The reliance on people taking various kinds of loans has increased exponentially. With many unannounced adversities always lurking around the corner, one often falls into the anguish of meeting many expenses.

The earnings that one earns are not enough as the cost of living is rising day by day with high rates of inflation. 

To meet many financial emergencies and goals, people all over the UK take loans and credits.

Several debt defaults become the norm along with few funds available for personal needs. Incessant inability to repay loans can land up anyone into deep financial quandary like county court judgments.

Some of these may be good debts while some others like payday loans, credit cards fall in the bad debt category. Once all these debt obligations get accumulated, the pressure to their timely servicing becomes heated.

WHAT ARE COUNTY COURT JUDGEMENTS??

County Court Judgements are orders by the courts in the UK region directing a debtor to pay off his dues.

Any creditor after giving a decent time for the repayment of debt has lost patience can approach the court to make the debtor repay. 

Before such an order is passed, a prior creditor notice is given to the borrower to repay, otherwise to face legal action.

Most credit agreements under the Consumer Credit Act require giving a default notice and a time duration of 14 days before any legal action is taken. 

RESPONDING TO CCJs

Once the borrower receives a letter or notice from the Court, taking the expert services of a good debt advisor is excellent. 

It would enable him to maneuver through the whole debt transaction easily and effectively negotiate with the creditors. 

Within 14 days he must reply in:

  • Reply form
  • Income and expenditure form
  • And with the copy of FCA’s default information sheet
  • Give acknowledgment of its receipt 

If the borrower ignores this notice (does not reply), judgment against him will be taken known as a judgment in default.

SOLUTIONS AVAILABLE AGAINST COURT ACTION

File for defense

If the borrower DOES not agree with the amount as stated in the notice 

Or 

Give acknowledgment of service

If more than 14 days are required to prepare the defense. 

Or

Agree with the stated amount

Besides, fill a form on his financial details and circumstances.  

JUDGMENT OF THE COURT

After this receipt, the Court can order for instalment repayment 

Or 

The repayment of the whole amount, on an immediate basis. 

REDETERMINATION OF CCJ ORDER

A scope for review or redetermination is also there.

Wherein the borrower requests the court to consider the whole case again and affirm the amount and manner of repayments.

Considering his affordability and present financial situation. 

DESPITE DEFAULTS

Even after all this, the borrower does not confirm and follow with the terms and conditions of the court order, then:

Bailiff action

In bailiff action, a warrant of execution is issued by the court to the creditor as a permit to access the house of the debtor and take his belongings. 

The warrant of execution gives power to the creditor to take ownership of the personal belongings of the borrower and sell them off.

The intrusion of personal privacy is not violated when the creditors visit the premises of the debtor and sell their valuables for loan repayment.

Charging order

Charging order in CCJ means that the house or any other property of the borrower is collateral.

A charge on the properties of the debtor and sold off for debt repayments.

Attachment order 

Attachment order or attachment of earnings order mandates the loan repayment through salary deduction of the borrower. 

For this, the employer of the borrower is contacted and made arrangements to debit the amount monthly, etc.

STEPS TO AVOID CCJs

If a person wants to avoid any court action on his debt repayment then take the following steps:

  • Appointment of a debt adviser of good repute
  • Undertake negotiations for a better amount and repayment terms by offering various options
  • Explain the lack of affordability in the present conditions 
  • Decide for a realistic and debt repayment arrangement.

British people are really struggling to meet their ends this time. The COVID -19 pandemic has taken a hit on their earn ability.
 
People are losing their jobs, or even some are dropping their profession to start their ventures.
 
After meeting the daily expenses, they are unable to handle any untoward crises like pending taxes, medical costs, and hike in rental payments. 
 
To fulfill such emergency funding needs, these people can make use of loans for unemployed with bad credit and no guarantor.
 
Several online lending companies in the UK are present to understand the bad creditworthiness of jobless people.
 
To fulfill their out of budget monetary needs, they offer to give credit to the unemployed with a severe low credit score.
 
The mandate for a co-signor is also not required, and the scheme to start a venture becomes easy.

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