Written ByRobert Moore
Marketing Manager
Rob has over a decade of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.
Rob is now working with the Board at RMT KSA to develop strategic marketing programmes to support the business plan and drive more company rescues.
A CCJ is a court order that can be registered against an individual or limited company for non-payment of a debt. A judgement is made if the creditor has tried all other means to collect the debt.
If a CCJ has been issued against a company because it cannot pay then it has failed one of the tests of insolvency. in that it cannot pay its debts when they are due.
The only way you can stop the issuing of a CCJ is to go to court and challenge the debt. It might be that the amount being claimed is wrong or is in dispute.
To do this, you must provide all of the necessary documents for supporting your application.
So, if you receive a Country Court Summons you must act!
If you can pay the CCJ amount in full, within 30 days of the judgment date then you can stop the CCJ being recorded on your credit file.
No. It is up to the creditor to decide if they want to invest more time and money into working with the courts to get the debt repaid.
Be aware that failure to pay settle the debt required by the CCJ can result in enforcement action i.e. bailiffs on your doorstep.
If the CCJ is not paid then the creditor can do the following.
If a CCJ is filed, then your businesses credit rating is affected for a period of six years. With a CCJ on your credit rating, it may be harder to obtain finance.
A poor credit rating will make suppliers more cautious. Expect upfront payments for goods and services.
There are three ways in which you can get the CCJ removed:
For more information on this see our page on removal of a CCJ
Act. Talk to an Insolvency Practitioner like ourselves, to assist you with your options. We can help find a solution before the Court has to be involved. Have you heard of a Company Voluntary Arrangement?
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Any creditor who is owed money has the power to serve a Notice of Enforcement if they obtain a court order. HMRC or landlords do not need a court order, however they must still obey strict regulations to retrieve debt.
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