County Court Judgement (CCJ)

An overview of County Court Judgements

If you don’t pay back money you owe, you risk being issued with a County Court Judgement. Equally, if you are owed money and have been unable to collect payment, then a CCJ is often the first enforcement step. At Chamberlain & Co we have extensive experience in advising on both the issuing and defending of County Court Judgements.

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What is a County Court Judgement (“CCJ”)?

In the United Kingdom, a County Court Judgement is a court order that can be issued against an individual or a company that hasn’t paid their debts (“the Debtor”). In order to collect the money owed to them, creditors often seek a CCJ initially.

The CCJ process typically involves three main steps:

Claim

The first stage is the filing of a claim with the County Court by the creditor seeking to commence this legal process. This document, which is served on the Debtor, contains detailed information on the debt.

Judgement

The court will assess the matter and could issue a judgement if the Debtor doesn't contest the claim. The sum the court decides is owed is specified in this judgement. Debtors must reply as soon as possible to defend themselves and prevent a default judgement.

Enforcement

Following the issue of a judgement, the creditor has a number of alternatives for enforcing the order and collecting the debt. This may involve asset seizures by bailiffs, attachments to earnings, charging orders, third party debt orders or other legal measures.

The Company had suffered a bad debt from one of its key customers and was coming under increased pressure from creditors with the threat of a winding up order. Specialist Engineering Company - South Yorkshire

Helping your business through the process

Testimonial

We approached Chamberlain & Co after a friend recommended their services. They quickly understood our situation and were able to act quickly to ensure that the Company was protected from legal action and provided a solution to save our business and preserve the employment of our loyal workforce.

We engaged with the Directors and developed a plan to save the business therefore protecting jobs. We assisted the directors in explaining the plan to key stakeholders and arranged for the business and assets of the company to be marketed and sold.

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Here at Chamberlain & Co, we are happy to offer you an initial one-hour free CCJ consultation that can be done remotely on a conference call.

If you require any further information regarding the consultation or any of our other services, give us a call on 0113 242 0808 or e-mail advice@chamberlain-co.co.uk.

County Court Judgement (CCJ) FAQ's

Why should I issue a CCJ if I am owed money?

Once the judgement is granted, it gives you access to other enforcement measures, such as charging orders
It often forces the Debtor to re-engage if they have been ignoring your correspondence
It is a relatively quick and cheap process, with each side bearing their own costs for small claims under £10,000

How serious is a CCJ?

If a County Court Judgement is issued then this is a serious matter which will adversely affect the Debtor’s financial credibility. It proves that the court supported the creditor’s application and confirms that the debt is due and payable. A CCJ will negatively impact the Debtor’s credit rating, making it more difficult and more expensive to get future credit. It also allows a creditor to take enforcement action such as instructing bailiffs.

What does having a CCJ mean?

A County Court Judgement is a court order for a person or organisation to pay a debt. It is often the first formal step a creditor will take to recover monies that are owed and often leads to further enforcement measures to seek to recover the debt. A CCJ can be the basis for a statutory demand under the Insolvency Act 1986, which could lead to a compulsory liquidation of a company or the bankruptcy of an individual.

Will people know I have a CCJ?

If you have a CCJ, then this is a matter of public record and so can be seen by anyone that searches on the Register of Judgements, Orders, and Fines, which is available online. It is significant to remember that CCJs, even if the debt has been satisfied, stay on the register for six years from the date of the judgement, unless it is settled within 28 days and an application is made to court for it to be removed from the court records. So it is crucial to engage with the creditor at the first possible opportunity and settle the issue if possible before the judgement is issued or certainly promptly thereafter.

What happens if you ignore a CCJ?

Serious repercussions may result if a County Court judgement is not dealt with. The creditor may take further action such as:

Obtain a Charging Order over your property, which may ultimately lead to them to obtaining an order for your home to be sold to pay the judgement debt;
Obtaining a Third Party Debt Order which may result in a freeze on your bank accounts or on money owed to you;
Obtaining an Attachment of Earnings Order which will result in money deducted from your payslip.
Instruct Bailiffs who may visit your property and to take control of your possessions, such as a vehicle
The commencement of proceedings under the Insolvency Act 1986

Additionally, a CCJ will impact your credit rating which will make it more challenging and expensive for you to get credit in the future.

Can you go to prison due to a CCJ?

It is highly unlikely you will go to prison due to a CCJ. During the court process, the creditor may ask the court for additional action to be undertaken, such as a hearing to investigate your finances (an oral examination). If you refuse to abide by the court’s instructions to pay the judgement debt or assist with enforcement procedures, you may be found in contempt of court and subject to fines or, in severe circumstances, imprisonment if you wilfully refuse to assist with the legal process or knowingly offer false information.