Court debt judgements have soared by a third

Last updated at 20:37 29 March 2007


Mounting money problems have seen the number of court debt judgments leap by a third.

County court judgments rose 33 per cent to 843,853 last year.

The figures were published yesterday by the Registry Trust, which suggested pressure from banks and finance companies over recovering debts was one reason for the rise.

There has been a corresponding rise in the number of debtors going bankrupt or taking out repayment plans, which limit the ability of banks to recover their money.

Court judgments usually relate to unpaid debts on credit cards, personal loans and mortgages.

A judgment can be backed up by the threat of bailiffs seizing possessions.

Trust chairman Malcolm Hurlston said: "It might seem puzzling that judgments are increasing as growth in outstanding unsecured debt is levelling off.

"Judgments are an important item in creditors' armoury, particularly for dealing with people who are 'won't pay' rather than 'can't pays' and the sharp rise indicates it is creditor behaviour that is changing."

The number of bankruptcies in the first nine months of last year was up by 36 per cent on 2005.

Most watched News videos