What To Do When Issued A County Court Claim For Money
A county court claim is a claim for money through the legal system, in which one party is able to force a judgment on another through a trial administered by a judge. These claims can be disputed, but if handled incorrectly, can have adverse effects on one’s credit rating.
Your credit report won’t be harmed by putting up a dispute on the county court claim. The only way your credit report will take a hit is by failing to pay in the event a judge declares the claim to be upheld. Feel free to debate the charge and present your case. Best case scenario is that you win the case and don’t have to pay anything at all- while otherwise you should start making immediate plans to pay the debts.
Once presented with an unfavorable outcome, you still won’t have to worry about creditors catching wind of it. You will only have to worry about your credit if you miss a payment plan as outlined by the judge residing over the case. If you do miss a payment, despite paying it later, the county court judgment will go down on your credit report for no less than six years.
In comparison to a bankruptcy, one may draw some solid conclusions that both are about the same in terms of negative reputation. A CCJ may not be removed, just like the bankruptcy filing, and will put borrowers on a path to hopeful recovery. Credit counseling services can reduce the effect that the filing will have in time, but it will take work.
A bankruptcy doesn’t necessarily disallow a mortgage loan, and neither does the county court judgment. It just means that you will have to work harder in order to prove yourself over the next year or so. Often if you have an otherwise perfect credit history, a lender will overlook the CCJ on file and put faith in you as an individual. Of course, this demands that you have had a long line of credit and have maintained it without error.
Having bad credit and obtaining a CCJ mortgage is another story entirely. Bad credit CCJ loans are a niche mortgage that are harder to qualify for. The best thing to do at this point is to improve credit or consult lenders that specialize in bad credit mortgages. Even two years is enough time to raise your credit if you can pay off credit balances monthly and on time.
Closing Comments
Don’t linger on the county court judgment if you have been served with one. Don’t try to contest it any further or refuse to pay, since it will indeed have an impact on your ability to get a loan or even a job in some cases. Pay up and move on- it’s the most you can do.
Learn more about CCJ Mortgage Deals and Re Mortgage CCJs.
Kategorie: General, Home And Family, Reference And Education, Society, Aktualisiert am January 15, 2010 von Super Articles | Log in