What is a County Court Judgement (CCJ)?

Talk to our Business Support Expert

Brendan Clarkson

Brendan has more than 25 years of experience in corporate lending and insolvency.

5 Star Rated Customer Service

A County Court Judgment (CCJ) is a serious legal matter issued by county courts in England, Wales, or Northern Ireland against individuals or businesses who fail to repay their debts. Initiated by creditors seeking repayment, the court evaluates the claim and, if validated, issues a CCJ against the debtor.

This judgment details the owed amount, the payment method, and the deadline. Significantly, a CCJ is recorded in the Register of Judgments, Orders and Fines, making it a public record that flags the debtor’s creditworthiness to future creditors.

For businesses, the implications of a CCJ are profound. It not only impacts immediate financial obligations but also harms the company’s long-term credit rating, affecting its ability to secure future loans or favourable credit terms.

Non-compliance with a CCJ can lead to severe consequences, including asset seizure or winding-up proceedings. Thus, prompt response and resolution of a CCJ, potentially with professional assistance, are crucial to mitigate its negative effects and safeguard the business’s financial health and future prospects.

What are your options when you receive CCJ?

When you receive a Letter of Claim, it indicates that a creditor is considering legal action against you for outstanding debts. This letter is typically a precursor to a County Court Judgment (CCJ) and should be treated with urgency and seriousness. Here are your options upon receiving a Letter of Claim:

Option 1

Pay the Debt

If the debt is valid and you have the means, the simplest response is to pay the debt in full. This prevents any further legal action and the potential issuance of a CCJ.

Option 2

Negotiate a Settlement

If you’re unable to pay the full amount but acknowledge the debt, you can contact the creditor to negotiate a settlement. This could involve arranging a payment plan that’s more manageable for you.

Option 3

Dispute the Debt

If you believe the debt is not owed, you can dispute it. You’ll need to provide evidence or a detailed explanation as to why the debt is not valid. It’s crucial to communicate this clearly to the creditor.

Questions & Answers about County Court Judgement (CCJ)

Here are some frequently asked questions that will help you understand CCJs.

Question about County Court Judgement (CCJ)?

Upon receiving a CCJ claim, it’s crucial to act swiftly. You typically have 14 days to respond. Ignoring it can result in the court making a judgment in your absence, often to the creditor’s advantage. You can either admit to the claim and propose a repayment plan, dispute the claim, or pay the full amount owed.

Deadline for Replying to a CCJ Claim Form

The deadline for responding to a CCJ claim form is strict. You have exactly 14 days from the date of service to reply. Failing to respond can lead to further legal action and potentially harsher repayment terms being set by the court.

How a CCJ Affects Your Credit Record

A CCJ can significantly impact your business’s credit rating. It stays on your credit record for six years, affecting your ability to borrow money or secure contracts. This can hinder your business’s growth and financial stability, making it crucial to address a CCJ promptly and efficiently.

How to Fight a CCJ?

If you believe the CCJ claim is unjustified, you can challenge it. This involves filling in the response form, detailing why you dispute the claim. Seeking legal advice is highly advisable in such situations, as the process can be complex and the stakes are high.

Received a Letter of Claim?

A Letter of Claim is often the first step in the CCJ process, where a creditor informs you of their intent to take legal action. It’s essential to take this letter seriously and consider seeking professional advice to explore options like negotiating a repayment plan or challenging the claim.

How Long Does a CCJ Last?

A CCJ remains on your credit record for six years, regardless of whether you pay it off. However, paying it within one month allows you to have it removed from your record, which is highly beneficial for maintaining a healthier credit rating.

Authorised by the Insolvency Practitioners Association

Members of the Association of Business Recovery Professionals (R3)

Member of Association of Chartered Certified Accountants

Member of the Institute of Chartered Accountants in England and Wales

Check out our helpful library of blogs, guides and the latest news.

Go to Resource Hub

How we can help you and your business

Here are some other services we offer which could potentially help in your situation. Check them out;

Get in touch with us

Get in touch today to see how My Business Support can help your business.

Send us a Message

Enter to your details below and one of our team will be back in touch.

"*" indicates required fields

Full Name*
This field is for validation purposes and should be left unchanged.
Get in touch with us

Our Details

We have an amazing team of insolvency experts who are there to guide you through the process and offer industry-leading advice. Get in touch with us today!

e: info@mybusinesssupport.uk
t: 0800 260 6494