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Can a CCJ be included in Bankruptcy?
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Can a CCJ be included in Bankruptcy?

Can a CCJ be included in Bankruptcy?

If a CCJ (County Court Judgment) has been issued against you Bankruptcy will overturn it. In addition you will be protected against any further legal action.

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Is a CCJ debt written off in Bankruptcy?

If you go Bankrupt all the unsecured debts that you owe including any CCJs are included. Judgments that have been issued against you for unsecured debts are overturned.

If you have been making monthly payments towards a CCJ you must stop doing this. You are no longer allowed to make direct payments to any of your unsecured creditors. As far as you are concerned the debt is written off.

The Official Receiver (OR) may be able to make additional payments to the creditor. However this could only happen if you have assets which can be sold or you can afford an Income Payment Agreement.

If an attachment of earnings is being deducted from your wages this is also stopped. Your employer will be instructed by the OR to cancel the deduction and pay you as normal.

Does Bankruptcy prevent you from getting more CCJs?

After you are bankrupt you are given legal protection from your unsecured creditors. They cannot take further collection action against you. This means that none of them can apply for a new CCJ against you.

In addition if a creditor has already been granted a CCJ they cannot cannot take any additional legal steps against you. They lose the right to apply for an attachment of earnings or a charging order against any property you own.

However if you are a home owner and a Charging Order has already been issued this cannot be overturned by going bankrupt. A charging order secures the debt against your property.

If a Charging Order has already been issued the debt cannot be included in bankruptcy. The debt still has to be paid in full either by instalments or from the proceeds of the sale of your property.

What happens if a CCJ has already been recorded on your Credit File?

Even though a CCJ is overturned by Bankruptcy the record that it existed still remains on your credit file for 6 years. However there is no reason to be concerned about how this will affect your credit rating.

Bankruptcy itself will negatively affect your credit rating for 6 years. But this will outlast any affect of a CCJ because it will be the last action recorded on your file.

By the time the record of your Bankruptcy comes off your credit file the records of any old CCJs should also have disappeared.

After you are discharged you should check your credit file. Ensure any CCJs are dated no later than the date you went Bankrupt. If they are you can apply for the dates to be changed.

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6 thoughts on “Can a CCJ be included in Bankruptcy?

  1. mark ruby says:

    I had a CCJ issued against me in 2015 and then in 2016 made bankrupt now discharged. I am trying to open a business bank account and the bank manager wants evidence of the CCJ is satisfied. Is there a formal way to prove the ccj is wrapped up in the bankruptcy?

    1. Hi Mark

      You should get a copy of your credit file and find out what the status if this CCJ account is. It should be recorded as satisfied or at least partially satisfied. If not you can contact the original creditor and ask them to change the status.

      Other than this there is not much you can do I am afraid other than to say that if the CCJ was issued the year before you went bankrupt it would have certainly been included in your bankruptcy and so you are no longer liable for it.

      Which bank have you approached regarding getting a business bank account? I have heard that Lloyds are often very helpful in this area. It might be worth trying them if you are unable to make progress with the bank you are currently speaking to.

  2. mark ruby says:

    thank you james,

    I sent the bank manager a copy of the credit report and a link too your website here with the general advice. I doubt the original creditor would engage with the notion of helping me, I have a personal account with llyods so will give them a call in the morning

    1. I hope Lloyds will be able to help Mark. Please keep us up to date with how you get on as I am sure this will be helpful for others.

  3. Graham says:

    I had ccj put on my property for an unsecured loan that got turned into a secured loan, I was declared bankrupt shortly afterwords, the Reciever dealing with my bankruptcy said it was put on my property and would need to be paid if my property was sold, he couldn’t get it in my bankruptcy, that was over 10 years ago.

    The debt has now been sold on to a Solicitors Company and they are demanding payment, can this be right ? I have never been asked to make any payment regarding this loan in the past

    1. Hi Graham

      From what you have said I understand the debt you are referring to was secured against your property with a Charge. As a result it became secured and could not be written off in your bankruptcy. It therefore remains outstanding.

      If the debt has now been sold on to a debt purchaser they may not be aware that a charge has already been issued against your home. You should contact them and let them know. However as far as I aware they are with their rights to demand that you sent up some kind of payment plan to start repaying what you owe.

      I would advise you to do this. It is in your interest to do so. A secured debt will never go away until it is paid. Ultimately any outstanding balance will have to be paid from the equity in your property if and when you sell your home.

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