Navigating the world of debts and legal claims can be tricky, but don’t fret! If you find yourself facing a court claim for outstanding debts, you might end up with a county court judgment (CCJ) or high court judgment.

The key is to stay calm and take it step by step. Don’t ignore that court claim email or letter; respond within the given timeframe to avoid any complications.

A CCJ is a formal declaration by the court stating that you owe the money in question. When the judgment arrives, it will outline the amount owed, payment options (one-time or instalments), due date, and the payee. Here’s the important part: unless you pay the CCJ within a month, it stays on your credit report for a solid 6 years.

If you genuinely owe the money, it’s time to address it head-on. Work on repaying the debt, but if finances are tight, don’t panic. You can discuss payment terms with the court, seeking more manageable arrangements.

Now, the good news is that having a CCJ doesn’t necessarily mean the end of the road for your mortgage dreams. You can still apply for a mortgage but be prepared for potentially higher costs. Lenders understand that life happens and look at each situation individually. Settling the CCJ before applying will put you in a better position.

Even if one applicant has a CCJ and the other has a clean record, you can still apply for a mortgage together. However, being linked to someone with a CCJ might slightly affect your credit score, so be aware of that.

When lenders evaluate your application, they focus on the age of the CCJ, whether it’s been settled, the amount owed, and any other credit-related blips. If you have any of those then there is a higher chance of either being rejected or limited to a higher monthly payment.

If you’ve managed to repay the CCJ, you can request a certificate of satisfaction, which shows lenders you’ve taken responsibility for your debts.

If you would like some guidance on solving credit issues, download our free guide and check you credit report too.