Wondering about the implications of having a CCJ and how it could affect your family members? This article answers the question: How will a CCJ affect me?
Will my partner’s CCJ affect me?
The CCJ against your partner should not affect you. If you have a mortgage to pay off, you should be able to pay this off in full. However the creditor who has the CCJ will still have a charge on the property, this means they will be interested in your partner’s share of the property which could affect you as a household.
Will a relative’s CCJ affect my credit rating?
The debt will only affect you if you are financially associated, for example, if you have joint bills or credit accounts. A copy of your credit report will show any financial associates and you can request that they disassociate your names (see below section) if it shows that you are linked. A CCJ is linked to the individual rather than the property so if the debt collection agency updates their system to show that your relative no longer lives with you this will remove any record of the CCJ at your address. Overall your credit rating should not be affected as long as you are not seen to be financially associated through joint debts.
How does a CCJ affect my property?
The CCJ would not automatically affect a property but if no payment arrangement is put in place the creditor can take further action which could lead to the property being affected. If your debts are secured against your property, then creditors will be able to get all of their money back on the sale of the property. For more information, please read our article on debt against property.
Having a CCJ would not disqualify you from being able to sign your property over to someone else. However, you should seek legal advice before doing so. If you were to go bankrupt in the near future the Official Receiver (OR) would look at all the assets you had disposed of over the past 5 years, and if they had been disposed of in this time period, then the OR potentially would use their power to overturn the transaction.
Does a CCJ affect an address?
A CCJ is linked to the individual rather than the property so if the debt collection agency updates their system to show that the person in debt no longer lives with you, this will remove any record of the CCJ at your address. Therefore a CCJ for someone else should not affect your address.
How does a CCJ affect a lodger?
A CCJ is against a person and not against a property and as such should not have any impact your lodger and vice versa. The only way it will impact them is if they are financially linked. If your lodger has a CCJ, this cannot be secured against your property, as the lodger is not the legal owner of that property. Your credit rating should also not be affected by the lodgers CCJ’s.
Can a CCJ affect my employment?
CCJ will show up when a credit search is performed and some employers and professional memberships may require a credit check to be performed before offering employment or membership. So there is potential that for some people a CCJ will cause a great deal of difficulty. If the debt is repaid then it will become historic information and over a period of time will have less potential for impact. However, if the debt is due and remains unpaid there is always a risk that they will continue to chase for the debt and may use other types of court enforcement.
If you are currently employed your employer may be ordered to deduct sums of money from your wages at a certain rate (by means of an Attachment of Earnings). This may be shown on your payslip. Therefore your current employer may be notified about your situation. Please note, if you have received a CCJ claim form or documents these are not documents intended for your employer and should come to you personally.
What if my circumstances change?
If the company or creditor you owe CCJ payments to changes their name/account you will need to send a letter to them asking for the details of their new account. This way you can forward the required payments to them without fail.