County Court Judgments (CCJs): A Guide for Limited Companies
A County Court Judgment is a formal decision made by a court requiring you to repay an outstanding debt.
Typically, creditors use CCJs as a last resort to recover money owed.
They are specific to England and Wales, while Northern Ireland and Scotland use different legal systems for debt recovery.A County Court Judgment can create serious concern for a company director, particularly when the business is already experiencing cash-flow problems. However, receiving a CCJ does not automatically mean that your company must stop trading or enter liquidation.
The right response will depend on whether the company agrees that it owes the money, whether the judgment was entered correctly and whether the business can realistically afford to pay it.
💡 Quick Answer
A County Court Judgment, or CCJ, is a court decision confirming that a person or company owes money. A CCJ against a limited company belongs to the company rather than automatically to its directors, but it can damage business credit and may lead to enforcement if it remains unpaid.
What is a CCJ?
A County Court Judgment is a formal court decision confirming that money is owed.
A company might receive a CCJ after:
- Failing to respond to a court claim by the required deadline.
- Admitting that it owes the money.
- Defending a claim but losing the case.
- Agreeing to repay the debt through the court.
The judgment should explain:
- How much the company owes.
- Who must be paid.
- Whether payment is required immediately or by instalments.
- The deadline or payment terms.
CCJs apply in England and Wales. Scotland and Northern Ireland have different court and debt-recovery systems.
Can a limited company receive a CCJ?
Yes. A limited company is a separate legal entity and can have a County Court Judgment registered against it in its own name.
The company, not its directors, is normally responsible for paying a judgment entered against the company. This is an important distinction because a company CCJ does not automatically become a personal CCJ against its directors.
The position is different for a sole trader. A sole trader and their business are not separate legal entities, so a judgment relating to the business is normally entered against the individual.
Have you received a court claim or an actual judgment?
A court claim and a CCJ are not the same thing.
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Document or stage
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What it means
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Letter before claim
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A creditor is warning that court proceedings may follow
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Court claim
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Legal proceedings have started, but judgment has not necessarily been entered
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Default judgment
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Judgment may be entered because the company did not respond to the claim
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Judgment after admission
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The company accepted that the money was owed
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Judgment after a hearing
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The court considered the dispute and decided that the company owed money
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The claim paperwork should state when and how the company must respond. Do not wait for a further reminder if a deadline is already shown.
Some money claims are administered through the Civil National Business Centre, formerly known as the County Court Business Centre.
If you have only received a claim, you may still have an opportunity to admit, defend or otherwise respond to it before judgment is entered. Consider obtaining legal advice promptly if the debt or claim is disputed.
What should a director do after receiving a CCJ?
Start by establishing exactly what has happened and when.
1. Check the company details
Confirm that the judgment has been entered against the correct legal entity.
Check:
- The company’s full registered name.
- Its registered office address.
- The claimant’s identity.
- The judgment amount.
- The claim and judgment dates.
- Any payment terms.
Make sure the paperwork relates to the limited company rather than you personally or another company with a similar trading name.
2. Decide whether the judgment is correct
If the company accepts that it owes the money, review whether it can pay the judgment within the required period.
If the judgment appears to be incorrect, or the company did not receive the original claim, obtain legal advice immediately. The appropriate route may be an application to have the judgment set aside, but this is not guaranteed simply because the company did not respond.
Our separate guide explains the circumstances in which a company may be able to challenge or set aside a County Court Judgment.
3. Assess whether the company can afford to pay
Do not consider the CCJ in isolation. Review:
- Current bank balances.
- Expected customer payments.
- Payroll and essential operating costs.
- HMRC liabilities.
- Other overdue creditors.
- Existing finance repayments.
- Whether further legal action is expected.
Paying one creditor may solve the immediate judgment, but it could create a more serious cash-flow problem if the company cannot meet its other liabilities.
4. Communicate with the creditor
If the company cannot pay in full, the creditor may be willing to consider a realistic repayment proposal.
Any arrangement should be affordable and recorded in writing. Directors should avoid agreeing to payments the company is unlikely to maintain.
A private agreement does not necessarily remove or suspend the judgment, so make sure you understand how any proposal affects the existing court order and possible enforcement.
Live ChatWhatsappHow does a CCJ affect a limited company?
A CCJ can affect a business even before formal enforcement begins.
Damage to the company’s credit profile
Unless removed following payment within the relevant period or set aside by the court, the judgment may appear on the public Register of Judgments, Orders and Fines for six years.
Credit-reference agencies use information from the register when compiling company credit reports.
A registered CCJ may make it more difficult for the business to obtain:
- Loans and overdrafts.
- Asset finance.
- Invoice finance.
- Supplier credit.
- Commercial leases.
- Certain insurance arrangements.
- New contracts where credit checks are undertaken.
It does not make finance impossible in every case, but lenders may decline an application, reduce the amount available or offer less favourable terms.
Supplier and customer confidence
Some suppliers monitor business credit reports and public records. An unpaid CCJ may cause them to reduce credit limits, request payment in advance or withdraw credit facilities.
A CCJ could also affect tendering or contractual relationships where the company must disclose judgments or pass financial checks.
Enforcement against company assets
If the judgment remains unpaid, the creditor may ask the court to enforce it. Depending on the circumstances, enforcement could place company bank accounts, property or trading assets at risk.
Evidence of wider financial problems
One disputed or temporary payment issue does not necessarily mean that a company is insolvent.
However, an unpaid CCJ combined with tax arrears, creditor demands, missed finance payments or an inability to meet payroll may indicate a wider cash-flow or insolvency problem.
Does a company CCJ affect the directors personally?
A CCJ registered against a limited company does not ordinarily appear as a personal CCJ against its directors.
Directors are not automatically required to pay the company’s judgment from their own money. A limited company is legally separate from the people who own and manage it.
Personal exposure may arise where:
- A director was also named as a defendant.
- The debt was personally incurred.
- The director signed a personal guarantee.
- Separate proceedings are brought against the director.
- Misconduct or another legal basis for personal liability is established.
A creditor cannot generally transfer a company CCJ into a director’s name simply because the company cannot pay.
Directors who have provided personal guarantees should check the terms and obtain advice before assuming that a company repayment agreement has resolved their personal position.
How can you check whether a company has a CCJ?
You can search the public Register of Judgments, Orders and Fines through TrustOnline. A fee is normally charged for each search.
A company credit report may also show registered judgments and whether they are outstanding or satisfied.
When checking a business, use its correct registered name. Searching only a trading name could miss a judgment entered against the legal company.
Companies House is not the official register of County Court Judgments, so the absence of a judgment from a Companies House record does not confirm that none exists.
If you receive unexpected correspondence concerning a claim or judgment, contact the court using verified contact details rather than relying solely on the information in the letter.
Can a CCJ against a company be removed?
There are important differences between removal, cancellation and satisfaction.
Paying within one month
If the company pays the judgment in full within one month, it can ask for the judgment to be removed from the public register.
The court will normally require evidence that full payment has been made. The company may also apply for a certificate of cancellation.
Paying after one month
If the company pays after one month, the judgment will generally remain on the register for six years but can be marked as satisfied.
A satisfied judgment shows that the debt has been paid. Although it does not erase the entry, it is normally viewed more favourably than an outstanding judgment.
The company may apply for a certificate of satisfaction after payment.
Having the judgment set aside
A court may set aside a default judgment where it was entered incorrectly or where the company has an appropriate legal basis to defend the original claim.
An application should normally be made promptly and supported by evidence. Applying to set aside a judgment does not guarantee that the court will approve the application.
This is a legal procedure, so directors should consider speaking to a solicitor. Detailed information is available in our guide to challenging a County Court Judgment.
What happens if a company does not pay a CCJ?
A CCJ does not enforce itself. If the company does not pay, the creditor may apply for one or more methods of enforcement.
Potential options include:
Warrant or writ of control
Enforcement agents may attend the company’s premises to request payment or take control of qualifying company assets.
A creditor may, in certain circumstances, transfer a judgment to the High Court for enforcement. Our guide explains what directors should expect from High Court enforcement and how a High Court writ of control operates.
Third-party debt order
A creditor may apply for money owed to the company by a third party to be frozen and paid towards the judgment. This could potentially include money held in a company bank account.
Charging order
A creditor may seek a charge over qualifying property or land owned by the company. The judgment debt may then be paid from the proceeds if the property is sold.
Order to obtain information
The court can require an officer of the company, such as a director, to attend and provide information about the company’s finances, accounts and assets.
Insolvency action
Where the relevant legal requirements are met, a creditor may consider a statutory demand or winding-up petition.
A creditor does not necessarily need to obtain a CCJ before beginning insolvency proceedings. Equally, a winding-up petition is not an automatic consequence of every unpaid judgment.
If a creditor is threatening to wind the company up, read our guide to responding to a winding-up petition.
What if the company cannot afford to pay the CCJ?
An unaffordable CCJ may be a symptom of a wider company debt problem.
Begin with a realistic cash-flow assessment. Consider whether the business can:
- Pay in full without missing other essential liabilities.
- Propose an affordable arrangement.
- Improve cash collection or reduce expenditure.
- Refinance without creating unsustainable repayments.
- Continue trading while paying debts as they fall due.
- Restructure its debts through an appropriate formal process.
- Close in an orderly way if the underlying business is no longer viable.
The correct option will depend on the company’s cash flow, assets, liabilities, prospects and creditor position.
Possible solutions could include informal negotiations, refinancing, a Company Voluntary Arrangement, administration or a Creditors’ Voluntary Liquidation. None of these should be selected solely because the company has received one CCJ.
Our business debt help page explains the wider options available to directors whose companies are struggling to pay creditors.
Can a company continue trading with a CCJ?
A company is not automatically prevented from trading because it has received a CCJ.
It may continue trading if the directors reasonably believe the company can meet its obligations and continued trading is appropriate. However, directors should carefully monitor the company’s financial position.
If the company cannot pay its debts as they fall due, its liabilities exceed its assets or continued trading risks worsening creditor losses, the directors should obtain professional advice.
A CCJ should therefore be treated as a warning to review the company’s finances—not as automatic proof that liquidation is required.
How long does a CCJ stay on a company’s record?
A registered CCJ will normally remain on the Register of Judgments, Orders and Fines for six years unless:
- It is paid in full within one month and removed.
- It is set aside by the court.
- It is otherwise cancelled or corrected through the appropriate court process.
Paying the judgment after one month does not normally remove it, but the entry can be marked as satisfied.
The expiry of the six-year registration period does not necessarily mean that the underlying judgment debt has been written off. Our separate article explains what happens if a CCJ is not paid after six years.
When should a director seek professional advice?
Consider obtaining advice promptly if:
- The company did not receive the original claim.
- The debt or amount is disputed.
- An application to set aside the judgment may be required.
- Enforcement agents have contacted the company.
- A company bank account or asset is at risk.
- A statutory demand or winding-up petition has been threatened.
- The business cannot pay the judgment without missing other liabilities.
- Several creditors are taking action at the same time.
- The company may no longer be able to pay its debts as they fall due.
A solicitor can advise on defending a claim, appealing a decision or applying to set aside a judgment. Business Helpline can help directors assess the company’s wider financial position and understand possible rescue, restructuring or closure options.
Get help with a company CCJ
Receiving a County Court Judgment can feel serious, but the company’s options will depend on the debt, the judgment and its wider financial position.
If the judgment is disputed, has been entered incorrectly or requires a legal challenge, consider speaking to a solicitor promptly.
If the company cannot afford to pay, or the CCJ is part of broader creditor pressure, Business Helpline offers free and unbiased initial advice to limited company directors. Call our 24-hour helpline on 0800 088 2142 or contact Business Helpline to discuss the company’s circumstances.
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