How Do I Know If My Company Has a CCJ?

February 13, 2024 / FAQs

County Court Judgements, or CCJs, can be issued by a company’s creditors as a means of debt collection. They can be quite detrimental to a company, both in terms of reputational damage and additional difficulty in creating future business relationships. For these reasons, it is worth making sure that your company does not have a CCJ against it.

Generally, company directors will be contacted before and after a CCJ is issued. While this tends to keep directors in the loop, it is entirely possible that the news never reaches directors. This could be the fault of either party, or purely a mistake. So, if you haven’t been notified, how do you know if your company has a CCJ?

In this article, Clarke Bell will discuss CCJs, how you can find out if your company has one against it, why you might want to check and what to do if your company cannot pay back its debts.

What is a CCJ?

A CCJ is a legal document issued by a court to a company on behalf of a creditor. This document acts as a formal order to repay the specified creditor within a specific time frame. Creditors can apply for a CCJ at their leisure, provided they meet the eligibility criteria and follow the procedure correctly.

If the courts approve of your creditor’s claim, then your company will be issued the CCJ. This document will have all the necessary information relevant to your case, including dates, amounts payable, and the creditors that made the application. If you do receive any communications related to a CCJ, it is vital that you place it in safekeeping.

Once you have received a CCJ, you will have a number of potential responses. These include:

  • paying the specified amount in full
  • reaching an agreement with your creditor
  • disputing the CCJ in court

These responses have a time frame that begins upon the receipt of the CCJ. As such, you must act immediately upon receiving a CCJ. If you suspect your creditors may wish to pursue a CCJ, yet have not received any communications, then you might consider checking your company’s records.

How to see if your company has a CCJ

Checking to see if your company has a CCJ is quite easy. You can do so via one of two methods:

  1. you can search for your company on the TrustOnline database. This database holds a range of valuable information, including whether your company has an outstanding CCJ against it or not. Anyone can do this for a small fee of £10 for all registers. Once you’ve paid the fee, you can check a range of registers to see what information they hold regarding your company.
  2. There are a range of private organisations that offer the same ability to check databases for a fee, but also notify their users when CCJs are registered against their companies. This can help directors respond more quickly to the registering of a CCJ, but require the creation of an account and a fee.

Also Read: How Long Does a CCJ Last?

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Why should I check to see if my company has a CCJ?

No matter how you choose to check if your company has a CCJ, it is a good idea to do so. A CCJ can have a substantial effect on your company, especially if it is left unresolved. While you might be served with documentation regarding a CCJ, it can be wise to err on the side of safety. Checking to see whether your company has a CCJ registered against it can help you avoid the consequences described below.

The effects of a CCJ on a limited company

A CCJ can significantly affect your company, both while it’s outstanding and after it expires. By checking if your company has a CCJ registered against it, you can react swiftly, and stand a much better chance of mitigating the damage. There are a multitude of possible effects, though we will focus on some of the more common.

Reputational damage

Reputational damage is a fast-acting consequence of a CCJ. Databases and registries are available to the public, not just fellow directors or creditors. Should anyone wish, they can pay a fee to search your company in one of these registries and see if your company has a CCJ. Naturally, a registered CCJ against a company can cultivate a negative public perception. While this is bad enough, it can worsen if prospective business partners, suppliers, or creditors spot a CCJ.

Difficulty in forging future business relationships

If prospective creditors, stock or equipment suppliers, and suchlike find evidence of a CCJ, then it could prove to be an obstacle. Having a CCJ registered against your company will diminish your negotiating position, and could force you into accepting unfavourable contract terms. This could be anything from accepting a higher interest rate, to losing out on certain options. Some creditors and suppliers will refuse to work with a company outright if they find evidence of a CCJ.

Strains cash flow

A CCJ can constrain a company’s cash flow in a couple of ways:

  1. the order to make a possibly substantial repayment is likely to hit a company’s finances hard. As a company with a CCJ may well already be struggling paying its bills, a repayment order may be a heavy strain on its cash flow.
  2. creditors are less likely to approve loan applications from companies with a registered CCJ. This can make additional finance difficult to obtain, resulting in increased pressure on a company’s cash flow.

Also Read: How To Remove a CCJ

Clarke Bell can help you

If you have received a CCJ, and your company cannot pay the debt, we can help you.

Clarke Bell have more than 29 years of experience in helping companies find the best solution to their financial problems. The most popular option for dealing with a company’s debt problems once and for all, is to put the company through a process known as a Creditors’ Voluntary Liquidation (CVL).

If you want to sort out your company’s debt problems, put the whole thing behind you and move on, contact us for free advice.