County Court Judgements(CCJ) & Companies

County Court Judgements(CCJ) & Companies. Written by John A Waller, Director. Reviewed June 20th, 2024.

CCJ. So what next?

  • A limited company receiving a County Court Judgement is the start of a legal process.
  • It is an approved order from a court to force the recipient to pay an unpaid debt.

Once a creditor recovers a debt, they can apply for a County Court Judgment. If successful, the court may determine if the debt remains owed and payable. If found due, judgment is entered.

County Cort Judgements are commonly referred to as CCJs

Upon receiving the CCJ, you are allowed fourteen days to reply, though you may request an extension of an additional fourteen days. If you choose not to respond, the court may issue a judgment.

If threatened with a CCJ? Contact HBG Advisory on 0330 056 3120 for advice.

Do you know if a CCJ has registered against your company?

Once the issuing county court enters judgment in favour of the applicant, the court will notify the defendant via a notice. Thus, it will announce a claim registered for a debt found against you or your company.

Upon receipt, you have fourteen days to advise the issuing court of your intention to defend or accept liability. Either way, you must ensure the court is informed and attend if required. Failure will lead to a judgment against you or your company.

May CCJ’s Force My Limited Company Pay Its Debts Owed?

One of the mistakes company directors often make is to fail to consider the long-term impact of a CCJ. So, a CCJ does not force the company to pay its debts. It does, though, start a decline of the company, finalising the potential winding-up of your company.

Once the Registry of CCJ registers, this alone can be used as evidence to start winding up proceedings.

There are also several negatives of a CCJ if you wish to continue trading. Receiving a Judgement displays a low credit rating and affects your credit score if you provide a personal guarantee to obtain credit.

County Court Judgements & Companies – Can you have a judgment stopped?

If clear evidence of a legitimate error exists, the Judge may set aside or even stop Judgement by Form N244.

So, if the debt is due and not defendable, the only option is to pay it or enter into an insolvency process, such as a liquidation.

How Long Does the Footprint of a County Court Judgement Last on the Registry?

Six years.

Paying the debt fully within one month of the court judgment date removes the risk of the judgment being registered.

Ensure you prove this to the court by disclosing the certificate of receipt. Finally, ask the court for a Certificate of Satisfaction.

Do CCJs cause Directors to be Personally Liable for Limited Company Debts?

Not Usually.

Once in an Insolvency Process, the law requires directors to protect the company’s creditors.

If a director does not do this, they become exposed to criticism and potentially liable for the company’s debts due to trading while insolvent. The term Wrongful Trading applies to this course of action.

So, a CCJ issued against a limited company may not personally hold a director liable. Receiving a CCJ demonstrates the company is insolvent, thus trading Insolvently. So, the director may be guilty of wrongful trading and liable for the company’s debts.

How can I stop a court from issuing a CCJ against my business?

So, as with everything, the sooner you act, the better. You may stop further action.

Ensure you respond to the court when disputing a debt according to the documents received within the time limit. Often, errors even exist on the application, so check everything before responding, whether you accept liability or not.

So ensure you deal with the problem urgently with the court, whether liable or not, to stop the judgment.

County Court Judgements & Companies – Failing to pay the CCJ?

Receiving a CCJ is considered a serious matter. If you fail to pay it, you should expect the situation to escalate quickly to some enforcement action.

It usually means bailiffs will turn up at your door.

Other options creditors may use:

Attachment of earnings order: – Allowing money withdrawal before you receive your earnings to pay to the court. Due to a debt.

Third-Party Debt Order: – stops you from drawing money from your bank account.

Receiving a charging order: – ranking the seriousness of the debt by pacing a charge on assets for security. Failure to pay your debt Once you receive a charging order, the applicant may request an order of sale via an order.

Winding-up Petition: If a creditor applies for the CCJ to enforce a company debt, it is a common precursor to a Winding-up Petition, the most severe threat any company can face. If your company receives a Winding-up Petition, you will have just seven days to clear your debt, or your company will face forcible liquidation.

Is There a CCJ Register?

Yes,

A third-party private company runs it for the Ministry of Justice (MOJ).

You can search for judgments against you on the register of judgments.

The fee for each search costs between £6 and £10.

Assistance with an Ltd Company CCJ’s?

If you feel your business faces a CCJ, it would be wise to seek immediate help, saving heartache and cost.

Contact HBG Advisory on 0330 056 3120. They are happy to relieve your anxiety and offer free insolvency advice.

Insolvency and a CCJ support Meet the Team at HBG Advisory.

Bounce Back Loan advice for Company Directors

Directors should seek professional advice if they have Bounce Back Loan worries regarding repayments. The UK government introduced the COVID-19 support scheme to support businesses through the pandemic. owever, repaying the loans has been difficult. So ensure you seek advice sooner than later.
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