A County Court Judgment (CCJ) is a court order requiring you to pay back a debt. Obtaining one is a step a creditor can take in the debt collection process.

A CCJ should never be overlooked. Failure to pay or respond to the judgement can result in creditors using more aggressive debt collection tactics, which will affect your credit score.

If you have received a County Court Judgement (CCJ) and wish to fight or remove it, we can help you understand your options.

What impact does a CCJ have on sole traders and individuals?

A CCJ might put your business and personal finances in jeopardy if you work as a sole trader. A sole trader lacks the protection afforded by a limited company since you and your firm are treated as one legal entity. If your business funds are inadequate to repay a CCJ, you will be required to use your personal funds to cover the obligation.

If you don’t pay your CCJ, your creditors may pursue additional insolvency measures against you, such as petitioning for your bankruptcy. To avoid this, you may need our assistance in negotiating on an informal basis such as an affordable payment plan.

How Does a CCJ affect a limited company?

Unless personal guarantees are in place, if the CCJ is against a limited firm, the limited liability should protect you personally. A CCJ cannot compel your business to pay its obligations. It does, however, allow bailiffs and High Court Enforcement Officers to enter your home and potentially seize assets.

If your limited business is served with a CCJ, it might have long-term consequences. If you do not work to pay it off within the time period given in the judgement, your company’s credit rating may suffer for the following six years. You can try to postpone making payments during those six years, but this is unwise since creditors might use alternative debt collection measures to recover what you owe them.

Personal guarantees may be acted upon, leaving you personally accountable for the company’s debt, depending on the nature of your company’s loans or funding. If all attempts to collect the debt have failed, creditors can file a ‘winding-up petition’. This can lead to the compulsory liquidation of your company.

What can we do to assist?

A CCJ can have serious consequences for your business. If you’ve been granted a CCJ, you should immediately begin working to have it lifted. Whether it’s negotiating a repayment plan with your creditors or filing a motion to have the judgement set aside, you shouldn’t put off dealing with the situation in the hopes that your creditors won’t take further action.

Our qualified debt strategists can help you figure out the best way to resolve your situation.

How to get a CCJ removed?

If you receive a County Court judgement (CCJ) you don’t agree with, you may be able to apply to cancel it by completing an N244 form and returning it to the court. This is known as ‘setting aside’ a CCJ. We can assist in setting this aside and enter into negotiations with the lender on the original debt. Our pragmatic and commercial approach allows for all parties involved to equally benefit from the resolution.

Free initial case review.

Defending a CCJ can be difficult and overwhelming. At Bell & Company, our Debt Strategists can advise you on how best to respond to and defend a CCJ. Please contact us today for a free initial call, and we will explain your options. Call us now on 03301595820, email [email protected] or complete our Request a Callback form.

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