A very large number of British residents are current finding themselves in financial difficulties. Often people have become “zombie debtors”, where they only have enough income to pay the interest on their debts, and therefore have no prospect of repaying the principal. Others make the mistake of borrowing more money, and get deeper into debt. If debtors default on payments they may be taken to court by the lender. These actions occur in the county courts, and the judgments handed down are referred to as County Court Judgments (CCJs). Failure to comply with CCJs in the UK can have severe consequences, and they should normally be treated as a high priority for payment.

Charitable and special interest groups working in the field of consumer debt have been reporting large increases in the number of people with significant levels of debt. Many people are now classed as “zombie debtors” – they only have enough spare income to repay interest on their debts, and therefore have no realistic prospect of ever becoming free from debt.

There are many different kinds of personal debt, and some types are more important than others. Money which is owed on credit and store cards, or has been borrowed from banks as personal loans, is usually unsecured. This contrasts to a secured debt, such as a mortgage.

Money owed as arrears of rent, or arrears on gas and electricity bills, are unsecured debts, but they must be treated very seriously as they could lead to eviction, or to having the gas or electricity disconnected. Similarly any fine from a court must be treated very seriously, as people can be imprisoned for failing to pay.

If a debtor is unable or unwilling to make repayments on a debt, then the creditor will take various steps to enforce payment. These will normally include sending letters asking for payment, sending a default notice, and possibly using a collection agency.

Action in the county court is usually a last resort for the lender, but it will happen if the borrower does not make any arrangements to pay. When a CCJ is obtained the court will specify a monthly installment which must be paid.

In the event of continued failure to pay, the court may issue a charging order, or an attachment of earnings order, or a warrant which can lead to a bailiff visit. In view of the seriousness of the situation, payment of a CCJ should normally be treated as a priority debt.

If you are facing a CCJ action, or are already the subject of one, it is obviously a very worrying situation. Organizations such as Citizens Advice can help out, investigating longer term debt solutions such as IVAs or DMPs. Creditors often will prefer to work with people in financial difficulties, if they make genuine attempts to repay as much as they can afford, rather than taking legal action in the county court.