How Long Does A CCJ Last?

business man holding a document in a legal setting

A County Court Judgement (CCJ) can be filed against your company if you fail to repay debts to creditors. The implications of a CCJ can be very severe if you do not act quickly and suitably, so it is essential to understand how long a CCJ lasts and what you should do if you are issued one.

How long does a CCJ last?

Once a CCJ is filed against you, it will remain on the Register of Judgements, Orders and Fines for six years. During this time, the credit rating of your company will be affected and your business will find it harder to borrow money. Your personal credit rating may also be affected if you have a personal guarantee concerning the debt.

How can a business respond to a CCJ?

There are different ways you can respond if your business receives a CCJ that may allow you to reduce the length of a CCJ. You can:

Pay the debt in full in 30 days

The best course of action is to pay the debts in full within 30 days of the CCJ being issued. If you pay within 30 days, the judgement will be removed from the register and there will be no negative effect on your credit score.

Pay the debt after 30 days

If you cannot pay your debts straight away when a CCJ is filed, you should still implement measures to ensure that you repay what is owed to creditors. You can pay in full or in instalments after 30 days and the debt will be marked as satisfied to anybody that searches the register. However, the CCJ will still remain on the register for six years and your company’s credit file will be affected as a result.

Request to cancel the CCJ

There are some circumstances in which you can request to cancel the CCJ. For example, if you have already paid the creditor or believe that your company does not owe the debt, the court can agree to cancel or set aside the CCJ. You can also request to cancel the CCJ if you did not receive the letter informing you that it had been filed. A court hearing will be required in these circumstances.

Refuse to pay the CCJ

Being issued with a CCJ cannot force your company to repay its debts, but the consequences are serious if you choose to respond this way. Bailiffs may seize your business assets to cover the debt and you may be forced into compulsory liquidation via a winding-up petition. 

If you think you are going to be unable to repay your debts, choosing to enter the Creditors’ Voluntary Liquidation (CVL) process may be more suitable as it will prevent further legal action and alleviate some of the harm that may be caused to creditors if you undergo compulsory liquidation. 

Speak to a licensed insolvency practitioner as soon as you are concerned about the health of your company. The experienced team at My Liquidation can help you understand your options if you are unsure if you can repay a CCJ that has been filed against you.

Contact Us

I'm looking for more information on ...


Choose from the options below