What do you do after a CCJ is registered against your business

What to do after a County Court Judgment has been entered against your business

So you've been to court, it didn't go well and now a CCJ has been entered against your business. The court says you owe your creditor money and you must pay within the next 14 days. What next?

If you are able to pay – how to avoid 'the register':

Since 6 April 2006 all County Court judgments for the payment of money are recorded in the Register of Judgments, Orders and Fines – unless exempt from registration. This register is available for public searching. Judgments remain on the register for a period of 6 years unless the judgment is:

-        set aside; or

-        paid in full within 1 calendar month

Where the judgment is paid outside 1 calendar month, it will be marked on the register as satisfied but will still remain on the register for 6 years.

The judgment creditor may not necessarily keep the court fully updated, so it is always advisable to be proactive if you have paid in full within the 1 calendar month. If you are shown in the Register it will affect your credit rating and may affect your position with banks and creditors. In order to be removed from the register you should apply in writing to the relevant court for a Certificate of Satisfaction. You will have to pay a court fee to make your application and you should include the necessary evidence that the debt has been repaid. You may wish to instruct a solicitor, to draft the application on your behalf.

If you are unable to pay:

In some circumstances you may wish to make an application to the court to pay in instalments (if this was not dealt with at the final hearing). However, the creditor can ask the court to enforce the debt and may apply for a bailiff's appointment or charging order against an asset.

If you discover a historical CCJ:

If you discover a CCJ has been entered against you, you may be able to have the judgment set aside. If, for example, the claim form was sent to an old business address which is no longer in use, and not monitored, there may be grounds to set the judgment aside on the basis that the claim was not served correctly. In those circumstances, it is advisable to speak to a legal professional who can guide you through the application process.

If you have had a CCJ entered against your business, we recommend you seek independent legal advice on the options available to you.