A CCJ issued against your company is a court order confirming that a debt is owed to a creditor and has not been repaid. It is a formal and public mark against your company and can carry the below implications:

• Damage to your company’s credit rating
  A CCJ can be recorded on your company’s credit file for six years, which can negatively impact your company’s ability to secure finance and funding.
• Legal enforcement action
  The creditor issuing the judgment can apply to enforce the judgment straight away, which can result in County Court Bailiffs and High Court Enforcement Officers (HCEO).
• Increased risk of a winding-up petition and compulsory liquidation
  An unpaid CCJ of greater than £750 can be considered strong evidence of insolvency, refusal, or an inability to pay the debt. This can make it easier for the issuing creditor to secure a winding-up petition (WUP) and force your company into compulsory liquidation.
• Reputational damage
  Because CCJs have the potential to remain on your credit file and are publicly available, it can affect your relationship with investors, suppliers, competitors and clients. They will be able to see any judgments, potentially harming your company’s reputation.

More information about County Court Judgments

How can I resolve my company’s CCJ?

There are several ways to resolve a CCJ against your company. The most appropriate option depends on your company’s circumstances.

• Pay the debt in full
  By settling the debt in full, you can remove the judgment from your company credit file.
• Agree repayment terms with the creditor
  If you can’t pay the debt, you could negotiate directly with your creditor and look to come to an alternative agreement.
• Dispute the CCJ
  If you don’t believe your company owes the money, you can look to challenge the debt and have the CCJ set aside.

How to check if I have received a CCJ?

You should receive the CCJ paperwork from the court, directly to your company’s registered address. You can also view your record on the Register of Judgments, Orders and Fines. A public register which can be viewed online for a small fee.

If your company has received a CCJ, or you’re worried one may be issued, we can provide details of any existing judgments and free, confidential advice on how best to manage the situation and explore available insolvency solutions.

Can a CCJ force my company to repay its debt?

A CCJ is a court order confirming your company’s liability, the judgment itself cannot force your company to repay the debt. Once the judgment has been issued, creditors have the right to take immediate enforcement action, through county court bailiffs, HCEOs and WUPs, which can result in your company having to pay the debt.

More on what can happen if you don’t pay a CCJ

Can a CCJ make me liable for my company’s debt?

No, a CCJ issued against your company, belongs to the company and is the company’s responsibility to resolve. It cannot make you, the director, directly liable for the debt. You are protected by limited liability, which means that you and your company are classed as two separate legal entities.

In certain circumstances, if your company enters liquidation, you can become personally liable for the CCJ in question, or other company debts, through one of the following scenarios.

• Personal Guarantees (PG)
  A Personal Guarantee is a legal commitment made by you to a third party, such as a lender, supplier, or landlord, securing a form of funding for your company by using personal assets and finances as security. If your company fails to repay its debt, your guarantee will become enforceable by the third party. If you’re concerned about liability for a personal guarantee, in some cases lenders may be open to negotiation.
  More on Personal Guarantees in insolvency
• Trading whilst insolvent
  If your company continues trading despite you knowing that it is insolvent and unable to meet its liabilities and obligations, leading to a further loss for creditors, it is considered trading whilst insolvent. This can result in personal liability for the losses incurred by creditors. By seeking advice early, we can help you understand your solvent position and you can protect yourself early, ensuring that you are acting in your creditors’ best interest.
  More on trading whilst insolvent
• Overdrawn Director’s Loan Account (DLA)
  If you have borrowed money from the company which has not been repaid, and as a result, you have an indebted (overdrawn) Director’s Loan Account when your company enters liquidation, you may be required to repay the outstanding balance using your own personal funds. We will work with you to find the most suitable solution if you have an overdrawn DLA.
  More on overdrawn director’s loan accounts in insolvency
• Bounce Back Loan (BBL) misuse
  You can be held personally liable for misusing a BBL. This can involve obtaining loans through false information, using funds for unauthorised purposes, or engaging in activities that don’t align with the loan’s terms. If you’re unsure about if you have misused a BBL, or have concerns about personal liability, we can provide free advice, including how this can be addressed.
  More on Bounce Back Loan misuse

How our services can help your company with CCJ debt

If your company has been issued with a CCJ, it can often be an indication of financial uncertainty within a company. If your company is struggling financially, it’s important to take proactive step to resolve the situation

We can offer you free, confidential advice on the best way to manage any CCJs you have received, and we can offer guidance on the most appropriate insolvency solutions available for your company. 

• Repay your company debts in a payment plan via a Company Voluntary Arrangement (CVA)

  A CVA is a payment plan between a company and its creditors that allows you to restructure your company’s unsecured debts, while continuing to trade, by making affordable monthly payments over a fixed period. We start by assessing your company’s financial position, determining a realistic repayment amount. These terms are then proposed to your creditors and if approved, your company enters the repayment plan. When in place, all interest and charges are dropped and creditors in the arrangement cannot take further legal action. The process lasts for up to 5 years and on successful completion, any remaining unsecured debt in the arrangement is written off.

  More on Company Voluntary Arrangements

• Restructure your company through administration

  Administration is an insolvency procedure for companies. Entering the procedure, your company will be in a temporary state of protection by a moratorium that halts creditor action, including legal proceedings, giving your company the breathing space to continue trading. We will act as administrator and our primary purpose is to rescue your company as a going concern, attempting to restructure and turn it into a leaner, more profitable organisation. If rescuing the company isn’t a viable option we will also look at the most appropriate exit strategies from administration, whether that be a potential sale of the business, assets, the whole company, or transitioning to an alternative insolvency procedure.

  More on administration

• Close your company down via a Creditors Voluntary Liquidation (CVL)

  A CVL is a liquidation procedure for companies that are insolvent. The process will formally close and liquidate your company, ceasing its trading operations, realising any assets, and removing the threat of creditor legal action. If your company has employees, they can claim for redundancy and other statutory entitlements through the government’s Redundancy Payment Service (RPS). The process is final and irreversible. Once completed, your company’s unsecured debt will be written off and the company is dissolved, allowing you, the director, to move on.

  More on Creditors Voluntary Liquidation

• Close your company down and start again via a pre-pack liquidation

  A pre-pack liquidation is a type of CVL where the sale of your company’s assets is arranged before liquidation, allowing business operations to continue seamlessly under the purchasing company. The company name may be reused, and employees can transfer under TUPE. Contracts and essential agreements can also be included as part of a sale, ensuring minimal disruption to your business operations. This process eliminates the unsecured debts of your previous company, providing a fresh start free from previous unsecured liabilities.

  More on pre-pack liquidation

How to get in touch with us: The next steps

1. Speak with our initial advisers
   Make contact with our team, via phone, filling in a form, or online chat. We will assess your circumstances and, if suitable, arrange a free consultation with a consultant to discuss your company’s situation. 
2. Initial assessment
   During the consultation, we will advise if an insolvency procedure is the most appropriate route forward or whether alternative solutions better suit your company’s problems.
3. Formally engage with Wilson Field
   If there is an appropriate insolvency solution, we will confirm the necessary steps to start the procedure and will issue you with the relevant documentation for you to formally engage us. 

In summary

A CCJ against your company, can negatively affect its credit score and lead to further enforcement action, with the potential for your company to be wound-up and forced into compulsory liquidation. You can look to resolve a CCJ by either paying the debt, disputing it, or negotiating directly with your creditor. From the date of judgment you have one calendar month to resolve the CCJ, otherwise it remains on your company’s credit file for six years, or is marked as ‘satisfied’ if paid later.

If you’re unsure on what options are best for your company, of you’re concerned about your company’s financial position, we can offer free, confidential advice on the appropriate solutions available.

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