If you don’t keep to the terms of a CCJ
If you do not keep up the payments specified in the CCJ then the creditor can take action to recover the debt, generally, there are several ways they can do this
If you have assets they think can be sold to pay them they could apply to a private enforcement agency who would send round a bailiff;
♦ As above but they could seek action in the court, then escalate to the high court (the debt must exceed £600 for this situation), in which case you could receive a visit from a high court bailiff;
♦ If you own (or have a mortgage for your home) – apply to the court for a charging order;
♦ If you are working they could ask the court for an Attachment of Earnings Order;
♦ If you are on benefits then they may approach the DWP for a Third Party Deduction Scheme (DWP pay money directly from your benefits) – not all types of debt are allowed by the DWP
Bailiff action
Bailiffs can visit your home or business to collect the money, collect goods to sell to get the money or work out a mutually agreeable repayment plan. There is a charge for sending round a bailiff, which will be added onto the debt itself.
Charging Order
If you own a property (either with a mortgage or outright) the creditor can ask for a Charging Order to be secured against it. This means that a charge would be placed on your property so that when the property is sold the creditor would be paid their money back from the proceeds of the sale. The court allows 8% cumulative interest, whereas the property value may increase at a far lower rate, as such they effectively own more and more of your property as time goes on, in addition, they do not have to accept any short settlement offers on the debt, they simply have no incentive to do so.
Attachment of Earnings Order
An Attachment of Earnings Order asks for the money owed to be deducted by your employer from your wages.
Third-Party Deductions Scheme
As previously stated not all types of debt are allowed by the DWP – for a complete guide please see https://www.gov.uk/government/publications/how-the-deductions-from-benefit-scheme-works-a-handbook-for-creditors/universal-credit-third-party-payments-creditor-and-supplier-handbook#types-of-arrears-recovered-from-benefit
How we can help
Leston’s can provide generic guidance on debt matters, for individual guidance however we would refer you to an approved independent financial advisor who would take the lead in guiding you through the various options. For assistance simply click on the “Create a case” link at the top of this page to initiate a case.
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