Can a CCJ be included in a debt relief order?
A county court judgment (CCJ) can be included in a debt relief order (DRO) in most cases, providing it meets certain criteria.
When can a CCJ be included in a DRO?
For a CCJ to be included in a DRO, the CCJ must be from a non-priority debt. These include:
- store cards
- credit cards
- overdrafts
- water bill arrears
- buy now pay later
- hire purchase agreements for non-essential items, such as a TV
- catalogues
- unsecured loans
In most cases, CCJs are only issued for non-priority debts, so this isn’t likely to be a stumbling block.
If you aren’t sure if your CCJ is for a non-priority debt, you can ask the court that issued your judgment who requested it. You’ll need your case number, which you'll find on your CCJ claim form.
To be able to get a DRO in the first place, you must also meet all the usual DRO criteria. One of the criteria for a DRO states that you can’t owe more than £50,000.
What happens to my CCJ if I get a DRO?
You can’t be taken to court for a CCJ if you get a DRO.
Creditors can’t take further action against you unless your circumstances change and you’re no longer eligible. If your circumstances don’t change after 12 months, your debts are written off and the CCJ will no longer apply.
Both a DRO and CCJ remain on your credit file for six years. It may be difficult to borrow money during this time.
Considering a DRO? Get free debt advice today
Or learn how Money Wellness can help with free debt advice.
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When can’t a CCJ be included in a DRO?
You can’t include a CCJ in a DRO if the debt doesn’t meet the DRO eligibility. You can’t owe more than £50,000.
In addition to this, the CCJ can’t be from a non-qualifying debt. These include:
- criminal fines
- student loans
- TV licence arrears
- social fund loans
- damages for personal injury ordered by the court
- child maintenance service arrears
If you have a CCJ and want to check if you’re eligible for a DRO, get in touch with us and one of our advisers will be happy to help.
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