A County Court Judgment (CCJ) is a public record of debt that can significantly impact your financial and professional life. Once issued, it becomes immediately visible to credit agencies, potential creditors, employers, and landlords.
Fortunately, it’s not common for most employers to run credit checks against prospective employees. The majority of job seekers won’t face scrutiny of their credit history during the hiring process.
However, it may require explanation and could influence an employer’s decision, especially in competitive hiring situations.
If you’re pursuing a career in the financial services sector, you may also encounter additional vetting. Many roles in this industry require a ‘fit and proper’ test[1]Trusted Source – GOV.UK – The fit and proper test, which often includes a credit check. This is particularly relevant for:
Banking and investment positions
Insurance roles
Financial advisory services
The rationale behind these checks in the financial sector is to ensure that individuals handling sensitive financial information or making key financial decisions demonstrate personal financial responsibility.
Other Sensitive Roles: Some positions outside finance may also involve credit checks, typically those involving:
High-level security clearance
Significant financial responsibility within a company
If you’re concerned about how a CCJ might affect your job prospects, particularly in finance or related fields, it’s advisable to seek legal advice. There may be options to address the CCJ or prepare appropriate explanations for potential employers.
CCJs Stay on Public Record
All CCJs are recorded on the Register of Orders Judgments and Fines. They stay on your credit file or record for six years from the date of judgment. If you are able to pay the debt within a month, the judgment is removed from the register and it’s as if it had never been entered.
However, if you fail to pay within a month, the judgment will be marked as satisfied but will remain on the public register for six years. This is why it is crucial to respond quickly to a CCJ, as anyone can access the register for a small fee to find out whether you have a CCJ.
If the debt is left unpaid, the judgment is marked as unsatisfied and will only drop off your credit file after six years.
What is the Process for Setting Aside a CCJ?
This process will remove the CCJ from the register and your credit file. In short, your prospective employer won’t be able to find out about it, and it won’t affect your job prospects.
In certain cases, you can apply to have a CCJ set aside when it’s a “default judgment”. These types of judgments are handed down in specific situations, for instance, when the defendant fails to defend the creditor’s claim or even to acknowledge it.
In a similar vein, you can apply to have the judgment set aside if you didn’t attend the hearing, but there must be a good reason for the absence. For instance, the claim form may have been sent to the wrong address, so you didn’t receive it or have the opportunity to pay the debt within a month.
If you can demonstrate to the Court that you can defend the claim successfully, then you can try to have the CCJ set aside. To begin the process, you will need to use application form N244, which must be supported by a witness statement along with a draft defence. You will also need to attend the hearing.
If you are successful and the judgment is set aside, it will be removed from the register immediately as if it had never been entered. When exercising its discretion to set aside a CCJ, the Court always considers whether you made the application promptly. For that reason alone, it’s crucial to act quickly once you know that a CCJ has been registered against you and not bury your head in the hands so that you have the best chance of having the CCJ set aside.
If you’ve received a CCJ for your business and would like more information about the process and what you can do to have the judgment set aside, please call 0800 074 6757 or email info@companydebt.com for free and confidential advice from one of our professional advisers.
References
The primary sources for this article are listed below, including the relevant laws and Acts which provide their legal basis.
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