CCJ and Debt Management Plans: What You Need to Know in 2026

A debt management plan can feel like a lifeline when you are struggling to keep up with multiple creditors. But a DMP and a County Court Judgment are two very different things — and entering a debt management plan does not remove a CCJ from your credit file. If you have a CCJ, or are worried about one being issued while you are on a DMP, this guide explains exactly how the two interact in England and Wales.

What Is a Debt Management Plan?

A debt management plan is an informal agreement between you and your unsecured creditors to repay your debts at a reduced rate that you can afford. DMPs are arranged through a debt management company or a free charity such as StepChange or Citizens Advice. They are not legally binding in the way that an Individual Voluntary Arrangement (IVA) is.

Key features of a DMP include:

• You make a single monthly payment to the DMP provider, who distributes it between your creditors
• Interest and charges may be frozen — but creditors are not legally obliged to agree to this
• The DMP continues until all debts are repaid in full
• It is an informal arrangement — creditors can still pursue legal action if they choose to
• A DMP is recorded on your credit file and affects your credit rating

A DMP is often appropriate where someone has temporary financial difficulties and wants to repay what they owe over a longer period. It is not a debt write-off and does not provide legal protection from creditors.

Does a DMP Stop a Creditor from Getting a CCJ?

No — and this is one of the most important things to understand. A debt management plan is an informal arrangement. It has no legal force over your creditors. If a creditor decides to issue court proceedings against you while you are on a DMP, they are entitled to do so.

In practice, many creditors agree to pause enforcement action once a DMP is in place. If you are making regular payments and keeping to the plan, most creditors have little incentive to go to court. However:

• A creditor who believes the DMP payments are too low may still issue a claim
• Creditors who sell debts to third-party collection agencies may find the new owner takes a more aggressive approach
• Some creditors — particularly those with small debts — may issue court proceedings before joining the DMP
• If you miss DMP payments, creditors may resume enforcement action

If you receive a court claim while on a DMP, you need to respond to it promptly. Ignoring a court claim can result in a default judgment being entered against you — which then becomes a CCJ on your credit file. You generally have 14 days to respond to a claim form once received.

Does Entering a DMP Remove an Existing CCJ?

No. A debt management plan has no effect on a CCJ that has already been registered against you. The CCJ remains on the Register of Judgments and on your credit file for the full six years from the date it was issued, regardless of whether you enter a DMP, repay the debt through the plan, or pay the judgment in full.

This is one of the most common misconceptions about DMPs. People sometimes believe that repaying the debt — through whatever mechanism — removes the judgment. It does not. Paying a CCJ in full marks it as “satisfied” but does not remove it. Repaying through a DMP produces the same result: the debt is paid, but the judgment entry remains visible on your credit file.

The only way to remove a CCJ from your credit file before the six-year period expires is to have it formally set aside by the court.

What Does a CCJ Mean for Your Credit File While on a DMP?

Both a DMP and a CCJ negatively affect your credit score, but they do so in different ways and for different durations.

A DMP is typically recorded on your credit file as a payment arrangement or as accounts marked with reduced payment notes. This affects your score, but the specific impact varies depending on how your creditors report it. Default markers — often recorded when you first fall behind on payments before the DMP starts — remain on your file for six years from the date of the default.

A CCJ is a more serious marker. It is recorded on the Register of Judgments, Orders and Fines and is visible to all prospective lenders, landlords, and employers who carry out credit checks. A CCJ appears for six years from the date of the judgment — independently of any DMP entries.

If you have both a DMP and a CCJ on your file, lenders see both. The combination significantly limits your access to credit, mortgage lending, and rental properties for the period both remain active.

Can You Remove a CCJ While on a Debt Management Plan?

Yes — and it is worth considering, even if you are committed to repaying your debts through a DMP.

CCJ removal is a separate legal process, entirely independent of your debt repayment arrangements. The two routes available in England and Wales are:

Route 1: Consent Order (where the creditor agrees)

If the creditor who obtained the CCJ agrees that it should be cancelled — often because the underlying debt is being repaid or because there are grounds to dispute the original claim — both parties can apply to the court for a Consent Order. This is the faster and lower-cost route.

• Court fee: £123
• Typical timescale: approximately 12 weeks
• Outcome: CCJ fully cancelled and removed from the Register of Judgments and your credit file

Route 2: N244 Application (without creditor agreement)

Where the creditor does not consent, or where the CCJ was issued without your knowledge — for example because court papers were sent to an old address — you can apply directly to the court using an N244 form. This route requires a court hearing.

• Court fee: £313 (with a hearing)
• Typical timescale: 4 months or more (London: 9-12 months due to court backlogs)
• Outcome: If the application is granted, CCJ fully cancelled and removed from your credit file

CCJ Removal Services is not a solicitor or law firm and is not SRA regulated. We provide a guided service to help individuals navigate this process. This guide is provided as helpful information, not as legal advice. For full details on how we work and what our service costs, visit our CCJ removal service page or view our fee schedule.

Why CCJ Removal Matters Even If You Are Repaying Your Debts

Some people assume that if they are already committed to repaying through a DMP, removing the CCJ is a low priority. In practice, the CCJ often causes more immediate and lasting harm than the DMP itself.

A CCJ:

• Appears on the Register of Judgments, which is searchable by lenders, landlords, and employers
• Can block mortgage applications, even if your DMP is performing well
• Can result in a tenancy application being declined at the referencing stage
• May lead to further enforcement action — including attachment of earnings or a charging order on property — if the judgment remains unsatisfied
• Can affect eligibility for certain professional roles and licences

Removing the CCJ — while continuing to repay debts through the DMP — addresses the most visible and damaging mark on your credit file. It does not excuse the underlying debt, and your repayment obligations through the DMP remain, but it removes the specific legal judgment that causes the most practical problems.

What Grounds Exist for Setting Aside a CCJ?

A CCJ can be set aside where there are valid grounds. Common grounds include:

• The court claim was served at an address where you no longer lived, so you had no opportunity to respond
• You were unaware of the proceedings and the judgment was entered in your absence (a default judgment)
• You have a genuine defence to the original claim that was never heard
• The judgment was issued against the wrong person
• There were procedural errors in how the claim was issued or served

For detailed information on the circumstances in which a set-aside application may succeed, see our guides on CCJs from wrong addresses and disputing a CCJ.

The government’s official guidance on County Court Judgments is available at GOV.UK. Information on the N244 form can be found at GOV.UK.

How to Check Whether You Have a CCJ

Before taking any action, confirm exactly what is on your record. You can check the Register of Judgments at TrustOnline.org.uk for a small fee — the official registry for CCJs in England and Wales.

You should also check your credit report through Experian, Equifax, or TransUnion — all three offer free statutory reports. If you want to see all three files at once, a multi-agency service provides a consolidated view.

If a CCJ appears, contact CCJ Removal Services to discuss whether there are grounds to apply for set-aside and which route is most appropriate for your circumstances.