How to Enforce Your CCJ When Your Debtor Fails to Pay? Turning Judgments into Cash

Introduction

You’ve done everything right. You’ve pursued a County Court Judgment (CCJ) against your debtor. The court ruled in your favor, and the judgment is legally binding. But, your debtor remains unwilling to pay, leaving you in a financial limbo. This can be frustrating and impact your cash flow. In this blog post, we’ll guide you on how to transform that CCJ into actual cash.

Understanding County Court Judgment (CCJ)

A County Court Judgment (CCJ) is a court order in England and Wales that can be issued against an individual or a company if they fail to repay a debt. It serves as a legal means to collect outstanding debts.

Enforcing a County Court Judgment

When a debtor doesn’t pay within the first month after a judgment, the judgment is registered against them for six years. Before diving into enforcement, here are crucial steps to consider |

Opportunity to Make Payment |

Give the debtor an opportunity to settle the judgment debt, typically within 14 days.

Service of Notices |

Ensure the debtor is served with the judgment and is aware of it. Confirm that they haven’t filed an appeal, requested to set aside the judgment, or sought a stay of execution.

Assets Search |

Determine if the debtor has assets that can be seized and sold to recover the debt. Enforcing a judgment can be costly, so it’s vital to verify the debtor’s ability to pay.

Enforcement Options

Depending on your specific situation, you have several options for enforcing a judgment |

For a Limited Company |

County Court Bailiff / High Court Enforcement Officer |

They can file for a Writ of Control to seize assets or enforce payment.

Company Liquidation |

For debts over £5,000 owed by a limited company, you can file a Winding Up Petition, which can lead to the company’s closure and asset distribution among creditors.

For a Sole Trader |

Third Party Debt Order | This prevents the debtor from withdrawing money from their bank account, and the owed sum is paid directly to you.

Charging Order |

This secures the debt against the debtor’s property. It ensures that you’ll be paid when the property is sold or mortgaged.

Attachment of Earnings Order |

For employed debtors, this order compels their employer to deduct a specific amount from their pay until the debt is settled.

Bankruptcy |

For individual judgment debts over £5,000, you can initiate insolvency proceedings, starting with a Statutory Demand. This typically pushes debtors to pay.

Shaping Your Decision

The choice of enforcement option depends on various factors, including the type of business, the debtor’s assets, and your payment objectives. A discussion with an experienced enforcement team is invaluable in making an informed decision.

Shergroup | Your Trusted Enforcement Partner

Shergroup is a prominent player in the world of enforcement services in the UK. Our CEO, Claire Sandbrook, has been a driving force behind many pioneering initiatives in the High Court Enforcement sector. We have developed various services, including the transfer of judgments and universal online coverage across all 105 postcodes in England and Wales.

By partnering with Shergroup, you gain access to a seasoned enforcement team and an internal fulfillment team with over 150 years of service to the High Court system of enforcement. We offer the experience, systems, and customer service required to guide you through the enforcement process successfully.

Summing Up |

When a debtor refuses to pay, enforcing your CCJ is crucial to secure the funds you’re owed. This process can be complex and overwhelming, which is why turning to experts like Shergroup can be a game-changer. Don’t let unpaid debts hinder your cash flow. Contact our business solutions advisors today for comprehensive support in enforcing your CCJ.

To learn more about our services and to make a purchase, visit www.shergroup.com.