How To Get A CCJ Removed From Your Company
Having a County Court Judgement (CCJ) against your company can be a significant blow to your business reputation and financial stability. CCJs are issued as a last resort when your business has failed to pay its debts and therefore the consequences of having one are severe. For this reason, company directors often seek to discover how to get a CCJ removed and limit the implications of such legal action.
What Are The Implications Of A CCJ?
A CCJ is a court order that can be issued by creditors to a company that has failed to repay monies owed. It gives the company a specific window in which they must pay their debts, after which the CCJ will come into force and be registered against the company’s name. This information is publicly available and can therefore have long-term implications for the company, including reputational damage, difficulty obtaining credit and potential problems for directors if they have personal guarantees secured against a loan.
A CCJ will remain on the company’s record for 6 years. Directors should therefore seek to repay the debt as quickly and suitably as possible or, if already enforced, work towards getting it removed entirely.
How To Get A CCJ Removed
While it should always be stressed that companies must take the threat of a CCJ seriously, it can be reassuring to know that it is possible to get a CCJ removed from records. Your ability to do so will depend on the circumstances in which the CCJ was issued and the current position of your company.
Before doing anything to try and get a CCJ removed, you should first thoroughly review the court order to ensure that it is accurate. Check the details of the debt, the amount owed and the dates to confirm that it matches up with your records. The outcome of this review will affect which of the following options may be the most suitable for you to embark on to get the CCJ removed.
Pay The Debt
The simplest way to get a CCJ removed is to pay the debt in full. If you are able to do this within 30 days of the CCJ being issued, you can request that the creditor has this removed from records and therefore that there is no lasting impact.
Even if you cannot pay the debt within 30 days, you should make all possible efforts to repay the debt as quickly as possible as it will then be marked as satisfied to anybody who searches the register. You can also apply to the Courts to have the CCJ removed from the register once it has been paid in full.
Contest The CCJ In Court
You can also get the CCJ removed by contesting it in Court, though this is likely to only be a viable option if you believe that the CCJ was incorrectly issued in the first place. For example, if you believe that you have already paid the debt, did not owe the creditor any money in the first place, or believe that the correct procedure was not followed to issue the CCJ, you may be able to appeal to have the CCJ removed. Should your appeal be successful, the CCJ will be set aside and removed from the register.
Consider Your Alternatives
If repaying your debts is not possible and you are not eligible to contest the CCJ then you will need to consider alternative options. Should you ignore the CCJ entirely and fail to pay, business assets may be seized and a winding-up petition can be issued to close your company via compulsory liquidation. All efforts should be made avoid this outcome.
A more preferable alternative may be entering into liquidation on your own terms via a creditors voluntary liquidation (CVL). This process allows you to appoint a licensed insolvency practitioner to dispose of and distribute company assets, formally close down the company and subsequently write off any outstanding debts.
Get Help Regarding A CCJ
If your company has been issued a CCJ, you must act quickly and proactively. While getting a CCJ removed from your company’s record is not always easy, there are a range of options available and getting to grips with these as quickly as possible will increase your chances of dealing with the CCJ successfully. We recommend that you always speak to an expert to discuss your options and find out which method of removing a CCJ will be suitable for you.
Should you determine that you cannot repay your debts and that liquidation is the best next step, the team here at My Liquidation can help. Our expert insolvency practitioners can act swiftly and promptly to liquidate your company in the event of a CCJ, providing a preferable outcome to creditors and alleviating the stress caused to you as directors. Get in touch with us today to find out more.
