County Court Judgement (CCJ)
A County Court Judgement (CCJ) can seriously affect your company’s ability to trade and if left ignored, could carry serious consequences.
CCJ's - should I worry and how can it affect me?
A County Court Judgement shows the public of your inability or unwillingness to pay your debts. Much like a personal credit file, when a CCJ is registered against a company, it creates a public record and could hinder your ability to apply for credit, open bank accounts or utilise trade accounts.
If ignored, a CCJ can be escalated to the high court and you could be visited by Bailiffs or alternatively, Winding Up Proceedings could be issued against your company.
What is a CCJ?
A CCJ is a legal ruling that you do owe a debt.
During the process of a creditor applying to the courts, you will be sent a Defence Pack, allowing your the opportunity for the courts to hear your side of the story. Failure to respond to this may result in a default judgement.
A judge will hear both sides of the case and if a ruling is made against your company, the debt will become legally owed.
If your Company is facing a CCJ hearing, have received a Defence Pack or have had a CCJ issued against your company, call us immediately to discuss your case. We have successfully unwound CCJ’s and or assisted in the defence to ensure that a CCJ isn’t issued against you.
Can a CCJ lead to insolvency?
The short answer to this is yes however, this is not an automatic process. An ignored or unpaid CCJ can be escalated down a number of routes, including the instruction of bailiffs to collect payment or remove assets to the value of the debt or alternatively proceed down the route of insolvency via a winding up of the company.
Once a company enters insolvency, the company and its transactions will be investigated to identify the reason for insolvency. There may often be legitimate reasons such as a downturn in the market of the loss of a large contract however; a directors conduct can be called into question if it is identified that the director has not acted in the best interest of the company and the failure is down to his/her wrongdoing.
A liquidator will review all transactions including but not limited to any debt taken into the company such as bounce back loans. If the liquidator is not satisfied that the company has been run appropriately, the directors may be referred to the Insolvency Service which can lead to a number of measures including Director Disqualification and/or a Fine.
If the liquidators suspect that a director acted unlawfully or inappropriately, they could make an application to the court to hold the director personally liable for the transactions
Been Issued a CCJ?
Contact Us Immediately on
03330 140313
Kingsley acted quickly and structured a solution
I was faced with not being able to trade anymore and had a number of creditors that were impacted.
Kingsley Legal Group acted quickly and built a tailored solution for a structured exit.
Act Fast for Immediate Advice.
The impact of a CCJ issued against your business can be vast and if left ignored or unpaid could have devastating consequences.
At Kingsley Legal Group, we are experts in assisting clients remove default judgements, assist in effective defence drafting and cease escalation of recovery post CCJ..
Our team are supported by an approved panel of leading lawyers and insolvency specialists to act quickly, minimising risk and exposure to insolvency.
Contact us today by calling 03330 140313 or book an appointment with our team here
