When you are dealing with debt you are sometimes forced to deal with your creditors in a manner you would rather avoid.  That manner would be a Magistrate's Court Judgement or CCJ.  CCJs are not something to be alarmed by and by appearing in court you could actually have a verdict that comes back in your favour, meaning that you may not have to actually pay the debt.  It could also mean that the courts will determine a repayment plan that works for everyone involved. 

When a creditor has a CCJ filed against you, they are taking you to Magistrate's Court to get the money you owe them.  If you pay the outstanding debt prior to the hearing, you can avoid the hearing or a judgement.  If you cannot pay the outstanding bill, you will be asked to speak with the court representative in private.  It is better that you attend the hearing in person, but if for some reason you can't, you can mail in the information the court is requesting.  The hearing does not determine whether or not someone is guilty or innocent.  They simply look at the facts to see if you owe the money and how you should repay it. 

The information you need to return to the court is a 'claim form' that states how much the creditor shows you owe them and other information that pertains to their claim.  On this form you have the chance to explain your financial situation to the court.  An Admission Form is included with the claim form and this is where you fill information on your income and how much money you have outgoing to your other bills.  You can make an offer to repay the debt or pay a lower amount if you feel that you owe the creditor less than their claim.  It is better to make an offer because if the court rules against you, you will have to pay the debt back in full or via monthly payments. 

Once the hearing is over, you will receive an order stating that you must repay the debt if the court rules the case that way.  The order - or CCJ - outlines the amount that is agreed between you and the creditor or what is set by the court.  If you have more than one judgement against you, the court could combine them all and issue an 'administration order' which is a single manageable payment you pay to the courts who in turn split it up between all of your creditors.  Normally you send the payments to the creditor who requested the CCJ unless an administration order is made.  Then you pay the courts. 

If you do not pay the CCJ, the creditor can ask the court to take action against you and force you to pay the CCJ.  It is important that you contact the courts if you genuinely cannot pay the CCJ so they can change the amount of the regular payments or suspend the CCJ until you can afford to pay it.  A CCJ will stay on your credit record for six years unless you pay the debt off completely within one month of the court order.