How to Serve a County Court Judgement
The debt collection process involves many stages to ensure there is adequate time and opportunities for the debt to be settled outside of court. When it cannot be done so, the court may issue a county court judgement, or CCJ.
But what is a CCJ, and how do you serve these to the debtor? Keep reading as we discuss the various requirements for serving a county court judgement, and why it’s important to follow proper procedure.
What is a CCJ (County Court Judgement)?
In short, a county court judgement, or CCJ, is an order from the court on your behalf (as the creditor) acknowledging the debt and requiring the debtor to pay you the money they owe.
This is usually one of the last steps you can take when it comes to debt collection. Applying for a county court judgement will often have a negative impact on a business relationship, so you need to weigh your options carefully.
Note: this information is relevant for England and Wales. In Scotland, the equivalent of a CCJ is called a decree and issued by a sheriff.
How long does a county court judgement last?
County court judgements can last for six years on the Register of Judgements, Orders and Fines in the UK. This is run by the Registry Trust on behalf of the Ministry of Justice.
It’s also a public record, meaning anyone can check to see if an individual or business has a CCJ.
CCJs can make it more difficult for debtors to apply for credit or loans in the future, so many are keen to avoid making it to this stage.
There is a way to remove CCJs from the public record by paying what is owed within a month of issue. Payment outside of a month will not remove the CCJ, but it can be marked as ‘satisfied’ to reduce the impact on the debtor's credit in the future.
How to obtain a CCJ against an individual
If you’re attempting to recover a debt from an individual, then there are a few steps you must take first before applying for a CCJ against them.
For example, where an individual owes money, the creditor must first initiate what is known as a ‘pre-action protocol’. This involves sending the debtor a letter of claim (also known as a pre-action protocol letter) and providing them with 30 days to respond or arrange payment or a payment plan. As debt collection and recovery specialists, Thomas Higgins Limited will send the appropriate letter for you.
If after 30 days the debtor has not responded, the creditor will move to the next stage of the debt recovery process - taking court action against the debtor.
The process against an individual will generally follow these steps:
- A business concludes that a debtor is unwilling and/or unlikely to pay an outstanding debt that the business is owed. This is confirmed following the non-response from the debtor.
- The business then initiates a legal claim with the local County Court. As debt collection and recovery specialists Thomas Higgins Limited issues bulk claims and uses the Civil National Business Centre and our claim instructions are electronically sent for issue the following day.
- The County Court Claim form is then served on the debtor requiring them to pay the debt, plus interest and costs within 14 days from the date of service.
- The Court form will be sent to the debtor by post. The form will explain to the debtor:
- How much they owe.
- How they can pay.
- The deadline by which they must pay.
- Who to pay.
- If the debtor does not pay the debt within this specified time frame, the debtor is said to be in default and Creditor may apply for a CCJ.
- A CCJ allows the creditor to proceed to enforcement action.
How to obtain a CCJ against a business
The process of obtaining a CCJ against a business is very similar to the process of obtaining a CCJ to an individual.
The main difference is the action the creditor is required to take prior to applying for a CCJ.
In the case of recovering a debt from another business, a business should first exhaust all standard options for recovering the money; ie. issuing invoices, reminder letters, telephone calls etc.
Should that not work, the next step is to either:
- Issue a letter before action (LBA) - this sets out the amount owed, and a statement that legal action will be taken should the debt not be paid. Or:
- Issue a late payment demand (LPD) letter - this sets out the amount owed, and a claim for compensation (under the Late Payment of Commercial Debts Regulations).
As debt collection and recovery specialists, Thomas Higgins can issue the appropriate letters for you. If either of these letters results in non-payment, then the next step involves initiating legal actions against the debtor business through the County Court. The process then follows the same path as obtaining a CCJ against an individual.
It’s important to note that in this instance the CCJ is issued directly against the company, not the company director(s) Choose Thomas Higgins for your debt recovery solutions
At Thomas Higgins, we put you in charge of your debt recovery case. You know your clients best, which is why we ensure you can make informed decisions on how we proceed.
When you open an account with us, you have total control over your case. Our website offers free, instant access to your case details, including copies of any correspondence written or received on your behalf and important updates on your claim.
We understand you’re busy, which is why our reliable app allows you to monitor, manage and direct the progress of your claim from wherever you are - for maximum convenience.
Our experienced team of debt recovery solicitors has over 40 years of experience working in the business debt recovery industry. As a team, we value honest, clear communication between all parties.
So why not get in contact today and let us help you recover the money you’re owed?
