The number of people with County Court judgments registered against them for consumer debts rocketed last year in another worrying sign of the UK's over-indebtedness. In total, 843,853 people had CCJs registered against them, up by a third on the previous year and the second year that the figure has risen.

According to the Registry Trust, the organisation that tracks the figures on behalf of the Lord Chancellor's office, lenders are going to the courts at an earlier stage of the process of debt recovery to make sure they have a claim on the borrower's property.

A CCJ is the first step in a legal process that can end with bailiffs at your door, demanding goods to the value of the debt. It is also the first step for a lender to take out a charging order, which converts an unsecured debt into a secured one, enabling it to make a claim against the value of the borrower's property. A CCJ stays on a person's credit record for six years unless they pay the balance within a month of its being issued. Even if the debt is paid within the six years, the CCJ will remain on file, but will be marked as 'satisfied'.

Lenders have seen their bad debt levels soar in recent years as increasing numbers of consumers take advantage of less stringent bankruptcy laws and Individual Voluntary Arrangements. Creditors are seeking judgments as the necessary first step to obtaining charging orders against debtors' properties, thus securing their share in any equity. It is a further warning to homeowners who may have borrowed too heavily on top of rising interest rates and escalating house prices.

Dealing with court actions

It is often the case that you may have county court or bailiff action against you. In fact for nearly one in four of our clients this is the case. At your Home Visit, our Advisor will identify these so that we can prioritise them for urgent action by EuroDebt's legal support team once you instruct us to act on your behalf. Whilst our legal support team cannot represent you in court, we can approach the court on your behalf to try and get your payments reduced (e.g. if you have an existing court order). We can also seek to persuade your creditors to drop court action where this may be pending.

Complete our application form NOW - we will arrange for an Advisor to visit you, help you manage your debts and put you on the road to financial recovery.

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Michael Clarke, This is Money, 2 April 2007
Artilce referenced from http://www.thisismoney.co.uk/credit-and-loans/debt-news/article.html?in_article_id=419016&in_page_id=62