How to recover an Unpaid Business CCJ
Some people may think it is straight forward to recover an unpaid Business CCJ but that is not always the case. Thousands of Business County Court Judgments go unpaid every year. Naturally some assume that once a Judgment is awarded by the court then it will be paid. This is by no way a given and some Business Debtors will just ignore the CCJ regardless.
If your Business is owed money and has gone to the effort of obtaining a CCJ then quite clearly you are intent in collecting this. Whilst the CCJ may induce some Business Debtors to pay, there are a significant number that will still choose to ignore it. This is when enforcement action can become necessary to collect your unpaid CCJ.
Our Expert Business Collections team have compiled this handy guide to your options to collect. Not all debts are the same and it will be in your interests to have knowledge as to the financial standing of the debtor. Quite often it is a case of pressing the right buttons to collect your unpaid CCJ. This quick guide may well help you do that.
Charging Order – If the Business that owes you money has property, this is a valid option. You can apply to the courts to place a charge on the property owned by the business. This will need to be for the amount that the court awarded you as per the County Court Judgement. Once this is done, there may also be the option to proceed with an order for sale. Ensuring your unpaid Business CCJ gets paid from the proceeds.
County Court Bailiff and High Court Enforcement – Depending on the amount of the CCJ awarded, an order can be obtained for one of the aforementioned to act. For Bailiffs to act, the court will sanction a Warrant of execution. For High Court Enforcement Officers to act, the CCJ needs to be escalated to the high court and a writ of control granted. Both allow goods to be seized under the order of the court. The latter of the options is only available if the debt is over £600
This can be a fruitful exercise providing there are reasonable goods to cover the Business CCJ Debt amount. The unspoken rule is that Enforcement officers will look for three times the value of the CCJ to ensure it gets paid in full after auction fees. Normally Enforcement Officers will seek a payment plan or payment in full. The seizing of goods is usually a last resort if the debtor is failing to co-operate or simply has no funds.
Attachment of earnings – If the unpaid Business CCJ was owed by a sole trader then this could be an option. It can also apply where a personal guarantee was given by a Company Director and subsequently ratified by a court order. An attachment of earnings will allow for a monthly or weekly amount to be deducted from somebody’s wage. A slow process depending on the amount owing but can be effective all the same.
Third Party Debt Order – This order can be made via the court to prevent monies been withdraw from the debtors bank account. It effectively freezes their bank account till the unpaid business CCJ is paid.
Insolvency Action/Winding Up petition – For unpaid Business CCJ’s of over £750, A winding up petition can be issued by a creditor to enforce payment. It carries the purpose of forcing an insolvent limited company into liquidation. If the court decides the Limited Company that owes the money is insolvent, then they will issue a winding up order. You will have been expected to have attempted all reasonable methods of collecting payment of the unpaid ccj prior to this action.
Get expert help!
Federal Management has helped thousands of Businesses across the UK collect their unpaid Business Debts. If you have a situation where you have a CCJ for a Business Debt and it has not been paid, it is worth speaking to the Professionals. Our friendly New Business Team offer a Free assessment and can advise of the best possible options for you. We have a dedicated Commercial Legal and High Court Enforcement Team. They specialise in helping enforce payment of stacks of Unpaid Commercial CCJ’s every month.
It is important for any Business to know is that a CCJ is not essential to collect an unpaid Business Debt. In fact over 95% of the B2B Debt Collection cases we do have no CCJ – A very worthwhile consideration before you enter the lengthy and expensive court route.
If your Business is owed money or has an unpaid Business CCJ, speak to our friendly New Business Team today for Professional Expert advice.