CCJs, CCJs, CCJs Whatever Next!

CCJs normally relate to unpaid debts. Credit cards, personal loans, mortgages, car loans and other types of retail finance.

The CCJs are backed up by debt collectors and bailiffs and the threat that those named will have personal possessions seized and auctioned off to cover outstanding bills.

Recent figures - published by the Registry Trust - come as bankruptcies hit their highest level since 1960 and personal debt reaches £1.3 trillion.

The amount of registered CCJs have almost doubled in three years. The figure for the first quarter of 2004 was 124,842, while it hit almost 250,000 during the same period for this year.

The Registry Trust implied the finance sector appeared to be getting tough with customers who failed to make repayments. 'Lenders are increasingly using the court route to deal with unsecured debts,' he said. He suggested the increase in CCJs represented an attack on those who refuse to pay, rather than those who cannot afford to pay.

The next step from getting a CCJ can mean bailiffs are called in by the bank to collect the debt. Finance companies can also seek CCj orders against a debtor's property. This puts families at risk of having to hand over a large portion of the proceeds whenever their home is sold.

Those who get a CCJ against their name will get a black mark against their credit rating, making it difficult and expensive to get credit cards, loans or mortgages in future.

One reason for the increase in CCJs is thought to be that banks are taking court action earlier than they have done in the past. This is because there has been an explosion in the numbers going bankrupt or opting for an Individual Voluntary Arrangement, which is one step short of bankruptcy.