Receiving official court correspondence can be unnerving; alarming if it concerns debts owed to creditors and terrifying if it’s informing you that a creditor is seeking a County Court Judgement (CCJ) against you or your business. 

As well as seriously damaging your credit rating for the next six years at least, making future borrowing and debt management difficult and more expensive, it could also mean the end of your business if ignored and not acted upon. 

A CCJ process will usually start when a creditor issues a Claim Form through their local County Court. This form details the amount they believe you owe and when received you typically have 14 days from the date of service, usually a few days after the date on the form, to respond.

You must respond within the deadline as failure to do so will likely result in a ‘default judgment’ against you meaning that the CCJ is automatically granted.

How to Prevent a CCJ Before It’s Issued

Prevention is the best cure so your best chance of avoiding a CCJ is to act before any judgement is made. If you’ve received a claim form then you can:-

  1. Pay the Debt in Full Immediately:
    If you agree that you legally owe the amount and can afford to pay it all straight away, doing so will guarantee that there will be no further legal action. Contact the creditor (or their solicitor), inform them you are paying, make the payment, and get written confirmation from them that they will cease the court action. You may also have to pay any costs they’ve incurred if required but this will be an end to the matter.
  2. Acknowledge the Claim & Negotiate:
    If you need more time to consider your options or arrange payment by installment, you can file an Acknowledgment of Service with the court. This extends your response deadline to 28 days from the date of service. You can use this extra time to contact the creditor. Explain your situation and try to negotiate a realistic repayment plan you can afford. If you reach an agreement, ensure it’s put in writing and confirm they will not proceed with the CCJ as long as you stick to the plan. Be prepared to provide details of your income and expenditure to underpin your financial offer and calculations to prove it is both realistic and affordable. 
  3. Dispute the Debt (File a Defence):
    If you believe you don’t owe the money, the amount is wrong, the debt is too old to be enforced (statute-barred) or you have already paid it, you must formally dispute it. You should file a defence with the court within the 14-day (or 28-day if acknowledged) deadline. You will need to clearly explain why you are disputing the claim and provide any and all supporting evidence. This will likely lead to the case being reviewed by the court, potentially resulting in mediation or a further hearing.

If you can’t prevent the CCJ or if it’s already been issued?

If you couldn’t prevent the CCJ in time, or have only been notified about it after it was granted, you still have some options available. These are:-

  1. Pay Within One Month:
    If you pay the full CCJ amount within one calendar month of the judgment date, then you can apply to have the CCJ removed from the official Register of Judgments, Orders and Fines. Pay the creditor, obtain proof of payment (a receipt stating the judgment is satisfied), and send this proof to the court. While it’s removed from the official register, note that credit reference agencies may still retain the data for their records, potentially affecting your credit score.
  2. Apply to Set Aside the Judgment:
    You can ask the court to cancel (set aside) the CCJ if you have a genuine reason for not responding to the original Claim Form (e.g., it went to an old address or you were seriously ill) and you have a potentially valid defence or reason to dispute the debt. If this is the case then you’ll need to apply using court form N244, explain your reasons, provide evidence, and pay the court fee. Note – there’s no guarantee the court will agree.
  3. Apply to Vary the Payment Terms:
    If you agree you owe the money but cannot afford the monthly payments ordered by the court in the CCJ, then you can ask to change them. Apply to the court using form N245 (Application for suspension of a warrant and/or variation of an order). You’ll need to provide detailed information about your income, expenses and any other outstanding debts to demonstrate why you need the payments changed to a more affordable amount.

If Debts Are Unmanageable

If the CCJ is part of wider debt problems that feel overwhelming, ignoring it can lead to enforcement action such as visits from bailiffs or High Court Enforcement Officers (HCEO).

This is when you should get some professional impartial advice about what options the company has such as a Company Voluntary Arrangement (CVA); administration or potentially liquidation.

Get in touch with us for a free initial chat with one of our advisors. 

Once they get a full picture of your financial circumstances then they will be able to let you know what your realistic options are and how you can make them work to your advantage.   

The sooner you get in touch the more leeway you will usually have but the most important step is the first one.