A County Court Judgement will remain on your company’s credit file for up to six years, if left unresolved for one calendar month. If paid after this period it will be marked as satisfied, but remain on your company’s credit file. If you don’t pay or dispute the debt, it can carry the below implications:

• Creditors can take enforcement action immediately
  A Warrant or Writ of Control is what allows enforcement officers to act on a CCJ. A creditor can apply for either, depending on the debt level, immediately after a CCJ is issued.
  • Warrant of Control
    Granted by the County Court for debts generally up to £5,000 and enables County Court bailiffs to visit company premises.
  • Writ of Control
    Granted by the High Court when a CCJ is transferred up. It can only be used for debts exceeding £600, and enables High Court Enforcement Officers to visit your company premises.
    Find out more about Warrant and Writs of Control
• Your company receives a Notice of Enforcement
  This is a formal written notice served on your company. It gives you seven clear days (This doesn’t include the day you get the notice, the day of the visit or Sundays and bank holidays)to act, before enforcement agents can visit your premises.
• Escalate to a winding-up petition (WUP)
  If the debt is for £750 or more, creditors can petition to wind-up your company. A petition will be filed with the High Court and will be advertised in the London Gazette. It can lead to your company’s bank accounts being frozen and compulsory liquidation. A CCJ is not needed to take this action, however, an unpaid CCJ can be a clear indication of a refusal or inability to pay. The debt
• Secure the debt with a charging order
  A creditor can apply to the court to secure the CCJ against your company’s assets, such as a property. This doesn’t force a sale but can turn an unsecured debt into a secured debt.
• Frozen bank accounts and debt orders
  Once a CCJ is granted, the issuing creditor can also apply to the courts for a third-party debt order. If the application is valid, the court can issue the order and serves it on your bank. Your bank will then freeze your accounts, or pay the specified amount to your creditor.

Can a CCJ force my company to pay?

A CCJ is a court order confirming your company’s liability, the judgment itself cannot force your company to repay the debt. The primary purpose of a CCJ is to give creditors the legal right to take enforcement action, as well as being a court recognised debt and a public mark against your company.

Can I resolve a CCJ without paying it?

Yes, if you believe your company doesn’t owe the debt, or that the judgment was made in error, you may be able to dispute the CCJ by applying to have it “set aside.” You can do this using an N244 form. This challenges the judgment and, if successful, removes it from your company’s record.

What if my company can’t afford a CCJ?

If you cannot afford pay the amount in full as specified in the judgment, you may be able to arrange a payment plan, or apply for temporary relief through one of the below means:

• Negotiate directly with your creditor
  You can approach the issuing creditor directly and agree an affordable repayment plan, or reach an agreement with an enforcement officer.
  
  This does not remove a CCJ from your credit file or stop a creditor taking further enforcement action. If paid after one calendar month, it will remain on your file for six years but be marked as ‘satisfied’.
  
• Apply for a stay of execution
  If enforcement action has already started, you can apply to the court for a stay of execution by using an N244 form. This temporarily halts enforcement while you dispute the debt, request more time to pay, or consider other solutions.
  
  A stay of execution does not cancel the CCJ or remove the debt. It only delays enforcement, and the court will usually expect you to be taking steps to resolve the judgment.
  
• Negotiate through the court
  You can apply to the court to vary the payment of a CCJ by submitting an N245 form Application Notice. This allows you to propose monthly instalments based on what your company can afford. If your creditors chose to accept it, the agreement will be formalised by the arrangement
  
  If the court agrees to your company’s N245 form, your CCJ will still remain on your company’s credit file, but creditors can’t take further enforcement action unless payments are missed.

If your company can’t afford to pay a CCJ or other unsecured debts, and you’re unable to agree a repayment plan with the creditor, we can advise you on the insolvency solutions available and help find the option best suited to your company’s circumstances.

How our services can help your company with CCJ debt

If you have received a CCJ and you’re concerned about the debt or any other outstanding company debts, we can provide free, confidential advice on the best ways to manage your situation, as well as offering guidance on the appropriate insolvency solutions.

• 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

If you don’t pay, or resolve your company’s CCJ, it can lead to further enforcement action result in the judgment staying on your file for up to six years. If the debt is £750 or greater, the  issuing creditor may choose to apply for a WUP, which could lead to the compulsory liquidation of your company. If you can’t pay the debt in full, your company can look to negotiate directly with the creditor or apply to the courts to have the payment terms changed. You can also apply to the courts to have the judgment ‘set aside’ and cancelled.

If you’re worried about a company CCJ, or you’re concerned about your company’s capacity to pay one, speak to us. We can offer free, confidential advice on your company’s situation and the most appropriate insolvency solutions.

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