Receiving a court letter for unpaid debt can be worrying – especially if you’re unsure what it means or what you’re expected to do. If you’ve been sent a CCJ letter in the UK or another official notice, it’s important to act quickly. Ignoring a debt letter from court can make things worse, but the good news is that you still have options.
This guide explains what court action for debt involves, what steps to take, and how to respond confidently, even if you’re struggling to pay.
Why have I received a court letter for unpaid debt?
When a creditor (like a credit card company, loan provider or utility supplier) hasn’t been able to recover the money you owe, they might take legal action as a last resort. This begins with a formal court process known as a County Court Claim.
The letter you’ve received is likely a Claim Form or Letter Before Action. It doesn’t mean you’ve already lost the case but it does mean the creditor is asking the court to make a legal decision about your debt.
If you ignore the letter or miss the deadline to respond, the court may issue a County Court Judgment (CCJ) against you by default. This can impact your credit record and give creditors more power to collect the debt.
What is a County Court Judgment (CCJ)?
A CCJ letter UK is a formal notice that the court has ruled you owe a debt. It sets out how much you must pay, when to pay it, and who you must pay it to.
You might receive a CCJ if:
- You don’t respond to a Claim Form in time
- You admit you owe the debt but don’t offer to pay
- The court agrees with the creditor after reviewing both sides.
Once a CCJ is issued, it stays on your credit file for six years unless you pay it off in full within one month.
Having a CCJ can make it harder to get credit, rent a property, or pass background checks, which is why it’s crucial to respond early.
Court action for debt: a step-by-step timeline
Here’s how the process typically unfolds:
- Default or missed payments
You fall behind on repayments, and the creditor issues warning letters or default notices. - Letter Before Action
A final notice from the creditor, warning that they intend to take legal action if you don’t pay or make arrangements. - Court Claim Form
The creditor applies to the court. You’ll receive a claim pack containing:
- The claim details
- A response pack with forms to complete
- A deadline for responding (usually 14 days)
- Your response
When you receive a court claim, you have several ways to respond. One option is to pay the debt in full if you agree you owe it and have the means to clear the balance straight away.
If you accept that you owe the money but can’t pay the full amount immediately, you can admit the debt and propose a repayment plan that fits your budget. Alternatively, if you believe the claim is incorrect, you have the right to dispute it and present evidence to support your case. - Court decision
If you respond and propose a payment plan, the court may set instalments. If you ignore the letter, a CCJ is issued automatically. - Enforcement
If you don’t follow the court’s decision, the creditor could take further action, like sending bailiffs or applying to take money directly from your wages.
What to do when you receive a debt letter from court
Don’t panic – but do act quickly. Here’s what to do if a court letter for unpaid debt lands on your doorstep:
1. Read the letter carefully
When you receive the letter, you should check the following:
- Who the creditor is
- The amount they say you owe
- The deadline to respond (usually within 14 days)
- Any instructions or forms you need to complete.
2. Confirm the debt
Make sure the debt is genuine. If you don’t recognise it, or you think it’s been settled or wrongly calculated, you can ask for more information. You can submit a “proving the debt” request if needed.
3. Decide how to respond
There are usually three options:
- Pay in full if you agree with the debt and can afford it
- Admit the debt but offer a repayment plan if you can’t afford full payment
- Dispute the debt if you believe it’s incorrect or unfair.
Use the response pack that came with the court letter to submit your reply. Keep a copy of everything you send.
4. Seek advice if you’re unsure
If you’re not sure what to do, or you’re worried about what you can afford, it’s a good idea to get expert help. You can contact a qualified adviser at MoneyPlus for tailored guidance.
Can I stop a CCJ from being issued?
Yes – if you respond in time, you may be able to avoid a CCJ or negotiate a manageable payment plan. The court may accept monthly repayments based on what you can reasonably afford.
If you pay the full amount within one month of the CCJ being issued, it won’t appear on your credit record. After one month, it stays there for six years, even if you later pay it off.
If you believe the court made a mistake. For example, if you never received the original claim, you can apply to have the CCJ “set aside”. This can stop enforcement, but it involves a fee and a court hearing.
What happens if I ignore a court letter for unpaid debt?
If you don’t respond, the court will usually issue a CCJ automatically. Once this happens, the creditor can ask the court to enforce the debt.
This could lead to:
- Bailiff action (also known as enforcement agents)
- Attachment of earnings (money taken directly from your wages)
- Charging order (if you own a property).
These can all be avoided if you act early and agree on a plan that works for you.
What if I can’t afford to pay the debt?
If the amount you owe is more than you can realistically repay, you might need a formal debt solution. Options include:
- A Debt Management Plan (DMP) – for making affordable payments on unsecured debts
- An Individual Voluntary Arrangement (IVA) – a legally binding plan that can write off some debt
- A Debt Relief Order (DRO) or bankruptcy, depending on your situation
How long does a CCJ last in the UK?
A County Court Judgment stays on your credit report for six years from the date it’s issued – unless you pay it in full within 30 days. During that time, it may affect your ability to get credit, a mortgage, or even rent a property.
Need help responding to a court letter?
Receiving a court letter for unpaid debt can be daunting, but it’s not the end of the road. With the right information and support, you can take control of the situation and avoid further action.
At MoneyPlus, we’ve helped thousands of people manage debt, deal with court action, and explore the right solutions for their circumstances. Whether you’re facing a CCJ letter UK, enforcement threats, or you just need help understanding your options, we’re here to help.
Contact us to find out how we can support you, or get free, impartial guidance from MoneyHelper.
