In part 2 of this blog we will be taking a look at County Court Judgments (CCJ)
What is a County Court Judgment?
This is when the creditor, having pressed for payment has now got the court to agree that there is a valid claim for the money. You have 30 days from the date of the Judgment to pay in full plus any costs incurred. Otherwise the Judgment will be registered at the courts and with credit reference agencies.
Remember an outstanding Judgment is proof of a company’s insolvency and allows a creditors to wind the company up.
What can I do and what should I do? - If possible always try to pay the debt within 30 days of Judgment. This will ensure that the Judgment is "set aside" and will not be registered with credit reference agencies. If you cannot pay it then this of course further proves insolvency. If it is registered then getting credit in future becomes very difficult.
If you are under real cashflow pressure but are attempting to trade out call the creditor/ their solicitor or the bailiff and try to agree a phased payment. Often they will agree but they may use the non-payment to push for further action such as distrait or winding up.
You may be surprised at how long a time you can spread payment through this type of deal. Think about it, the creditor just wants to be paid, even at £50 per week this is better than liquidation - because they will, inevitably, lose the whole amount in liquidation.
If you need any help with any legal action being taken against your company then call Rupen Shah from Opus Una Ventures, specialists in business recovery and turnarounds on 07868809350
