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County Court Judgments

Debt can be defined as a sum of money taken by the borrower from the lender. It is a two-party process that includes borrowing and lending. The person who borrows the loan is called the borrower and the person who gives the loan is called the lender. Debt is commonly used by large corporations or individual to make large purchases that are not affordable under normal circumstances. While the lending process takes place, the borrower is placed under a debt agreement by the lending party to make the transaction legal. The agreement also includes a payment plan that gives the lending party the right to collect the given amount of money over a mutually agreed period of time which most of the times includes added interest.

Usually, the debt taken by individuals includes personal loan, car loans and mortgage loans. These loans are the most basic and common form of loans any individual borrows through the course of his life. To ensure that the loan is repaid to the lender, a loan agreement is signed between the loan providing service and the borrower. In Wales and England, County Courts hand down legal judgments that are called County Court Judgements. Judgments related to loans and other monetary matters are assessed under the Register of Judgments, Order and Fines. This allows them to check upon the individuals credit and make judgement in accordance to the credit worthiness.

The alleged debtor is given fourteen days to decide upon what he or she needs to do while they are sent postal notification of an awaiting court case. The responding actions can be listed into four main categories; going to court for a hearing, paying the sum of money, admitting to have borrowed a smaller amount or deny borrowing at all. Every response has its own consequences but if one fails to respond to the legal notice sent by the court a decision against the debtor is made by the court.

If a faulty debtor is unable to pay the loan or make payment in response to the court decision the creditor is then given a right for multiple decisions. The creditor can apply for a charging order against the debtor. As a result, the court through legal means would seize property of the debtor to compensate the creditor. Through attachments of earning the creditor can apply for an amount of money deducted from the debtor’s salary. This is done by obliging the debtor’s employer to pay a fixed amount of money each month to the court so that it can be reimbursed to the creditor. The creditor can also opt for third party debt order. A third-party debt order means that the creditor would use a third party that holds any sorts of assets or belonging of the debtor to pay the debt against the asset or belonging. Lastly, the creditor can also use County Court Bailiff to get his money back. This process involves a court official that is responsible for seizing up any or every possession of the debtor to compensate against the loan of the creditor. The seized possession is taken away and sold at auction. The money collected is then used to settle or repay the loan.

A county court judgment remains for six years on the record, if the amount claimed is not paid within thirty days. There is no way to remove the record expect for paying the amount that the debtor owes. And late payment dose not completely remove the record but only puts a satisfied remark next to the CCJ on the credit file. Yet there are some exceptions. If a wrongful county court judgement is issued or the postal notification is not received by the debtor due to change in address or any other valid reason the judgment is discarded.If the debtor is guilty for not paying up the loan, the entire process is repeated and a new county court judgement is issued under the updated credentials. Otherwise, the individual is free to operate in whatever financial way he or she pleases.

When someone receives a postal judgment, it includes details that are; the amount of money the individual owes, methods of payment available (full or instalments), who to pay and deadline for making payment or payments if on instalment basis.

It is advisable that if you owe money, you should try your best to repay the amount as county court judgment can negatively affect your credit score and credit file. Records of any individual can be checked in the checking register by paying a small amount of fee. Whenever a person applies for finance or credit, it is a common practice for creditors to check for any ambiguities in the Checking of Registers records. If there is a case against you, it makes extremely difficult to have any sorts of finance. A judgment makes it extremely difficult for you to obtain any kinds of loan especially those that involve high risks such as mortgage. The impact of county court judgement is only reduced if regular payments are made to the court as it depicts that you made a mistake however now you are acting responsibly. The record for a county court judgement that is resolved within thirty days is automatically cleared from both the file and the checking registers record.

If you find it difficult for making timely payments or payments at all it is better to contact to a debt adviser or mortgage advisor. This is where our company, Independent Mortgage Brokers, comes in. The adviser is helpful as he can navigate you through the legal process of dealing with such situations. Adding on, they also help you in getting flexibility in payments from the creditor by filling legal notices.Lastly, you can always clear any loan through saving if you have any but keep in mind that have some extra cash all the times in case of emergencies.

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Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of our Independent Mortgage Brokers to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisers working for or with Independent Mortgage Brokers are fully qualified to provide mortgage advice and authorised and regulated by the Financial Conduct Authority. All our independent Mortgage Brokers will offer advice specific to you and your needs and circumstances. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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