When a County Court Judgment, or CCJ, arrives, it changes the tone of things. The situation has moved beyond reminders and into formal legal territory.
At that point, a common question follows. If there’s already a court judgment in place, can an Individual Voluntary Arrangement still deal with debt?
In most cases, yes. A CCJ doesn’t automatically remove IVA’s as an option, and it can usually be included alongside other unsecured debts. The detail matters though, so it helps to understand how the two interact.
Table of contents
- What Is a CCJ and What Does It Mean?
- Can a CCJ Be Included in an IVA?
- Does an IVA Stop CCJ Enforcement?
- What If a CCJ Has Already Been Issued?
- What If Bailiffs or High Court Enforcement Officers Are Involved?
- Will a CCJ Affect My IVA Application?
- Is an IVA the Right Option If You Have a CCJ?
- Speak to PennyPlan About a CCJ and an IVA
What Is a CCJ and What Does It Mean?
A CCJ is issued when a creditor applies to the county court for repayment of a debt and the court agrees that the money is owed. The judgment sets out how the debt should be repaid, either in full or in installments.
It’s a formal step, and it will appear on your credit file for six years unless paid within the first month. That can affect access to future borrowing.
What’s important in the context of an IVA is this: a CCJ does not automatically convert unsecured debt into secured debt. Unless the creditor has taken separate steps to secure it against property, the underlying debt remains unsecured. That distinction is key.
Can a CCJ Be Included in an IVA?
Yes, in most situations, a CCJ can be included in an IVA. An IVA is designed to deal with unsecured debts. Credit cards, personal loans, overdrafts and catalogues accounts often form part of the arrangement. If one of those debts has already resulted in a CCJ, it doesn’t usually change its status.
Once an IVA is approved, the creditor who obtained the CCJ is bound by the IVA in the same way as other unsecured creditors. They receive payments under the terms of the arrangement rather than enforcing the original judgment separately.
Does an IVA Stop CCJ Enforcement?
This is often the real concern. If an IVA is approved, creditors included in it are legally bound by its terms. That generally prevents further enforcement action relating to those debts.
In practical terms, that can mean:
- enforcement action is paused once the IVA takes effect; and
- creditors cannot continue separate recovery action outside the arrangement.
Timing does matter. If enforcement has already progressed to an advanced stage, the position can depend on what has already happened. That’s why advice is particularly useful when a CCJ is active rather than historic.
What If a CCJ Has Already Been Issued?
A CCJ being in place does not prevent you from proposing an IVA. If the IVA is approved, payments are made according to the IVA proposal instead of the installment terms originally set by the court. The judgment itself remains on record, but the debt it relates to is managed within the IVA.
For some people, this is the point at which they look at formal solutions. A CCJ can act as a trigger to review all debts together rather than dealing with each one separately.
What If Bailiffs or High Court Enforcement Officers Are Involved?
Enforcement following a CCJ can escalate. Creditors may apply for warrants of control or, in some cases, transfer the judgment to the High Court for enforcement action.
If an IVA is approved before enforcement is completed, included creditors are normally prevented from continuing action outside the IVA framework.
The exact position depends on the stage reached. Where enforcement is ongoing, the interaction between a CCJ and an IVA can become more technical, which makes early, case-specific advice important.
Will a CCJ Affect My IVA Application?
A CCJ on its own does not stop you entering an IVA. IVA approval depends on your overall financial position. A licensed Insolvency Practitioner reviews your income, assets and total level of unsecured debt before putting a proposal to creditors. Those creditors then vote on whether to accept it.
A CCJ forms part of that wider picture. It isn’t treated as a separate category of debt, but as part of your unsecured liabilities.
Is an IVA the Right Option If You Have a CCJ?
An IVA can be suitable where there are multiple unsecured debts and a stable income to support regular payments. That can include debts that have already progressed to a CCJ.
Suitability always depends on the bigger picture. Total debt level, disposable income and asset position all influence whether an IVA is appropriate or whether another solution may be more practical.
If you’d like a broader explanation of how an IVA works, you can read our guide to Individual Voluntary Arrangements. Looking at the full structure can help put a CCJ into context rather than viewing it in isolation.
Speak to PennyPlan About a CCJ and an IVA
If you have a CCJ and want to understand whether an IVA could include it, PennyPlan can help you look at the full picture.
Our advisers will review your income, debts and circumstances, and explain how a CCJ would be treated within an IVA. You’ll get clear information about your options, so you can decide what works for you.
Get free, confidential and tailored IVA advice to your situation – talk to us today.
