A CCJ is issued when a creditor takes court action against you for an unpaid debt, and you fail to respond or defend the claim. While a CCJ typically remains on your credit report for six years, there are steps you can take to address it sooner, potentially mitigating its impact on your business.
There are just three ways to have a CCJ removed or to prevent it from being registered on a credit record:
Pay the CCJ within a Month
If you pay the full amount stated in the CCJ within one month of the judgment date, you can apply to have the CCJ removed from the Register of Orders, Judgements and Fines and your credit record. This is the most straightforward method and the most beneficial for your credit profile.
What’s the Process?
Pay the claimant directly
Obtain proof of payment
Request a ‘certificate of cancellation’ from the court
It’s important to note that the creditor is responsible for informing the court of payment. If they fail to do so, the CCJ will remain on the public register.
Upon settling the debt, you should request confirmation from the creditor that they have informed the court. Alternatively, you may inform the court directly, providing proof of payment and a £15 fee.
Wait Six Years for it to be Removed Automatically
The register holds the details of CCJs for six years from the date of the judgment. After this period, the CCJ will be removed automatically from your credit record.
The register holds the details of CCJs for 6 years from the date of the judgment. After this period, the CCJ will be removed automatically from a credit record. Even if it is not paid, the CCJ will still be removed, and it will be too late for the creditor to enforce it.
If the CCJ has been on the register for some time, waiting may be the best option for you. However, if is recent, you should consider whether you can afford to hang on for 6 years with a poor credit rating.
Apply to have the CCJ set Aside
In certain circumstances, you may be eligible to apply to have a CCJ set aside.
For default judgments (where you didn’t respond to the claim or attend the hearing), you can apply to set aside if:
You have a reasonable prospect of successfully defending the claim
There’s another good reason why you should be allowed to defend the claim (e.g., you never received the claim form)
For non-default judgments, the grounds for setting aside are more restrictive. You might apply if:
There has been a significant procedural irregularity
New evidence has come to light that couldn’t have been obtained with reasonable diligence at the time of the original hearing
There are exceptional circumstances that justify setting aside the judgment
In all cases, the court will consider whether you made the application promptly.
The process involves submitting Form N244 to the court, providing evidence to support your application, and paying the required fee. If successful, the CCJ will be removed from the public register.
Given the complexity of this process and its potential impact on your business’s financial standing, it is recommended that you seek professional legal advice.
Certificate of Satisfaction: Mitigating the Impact of a CCJ
A Certificate of Satisfaction is a court-issued document that acknowledges you’ve paid a County Court Judgment (CCJ) in full, but after the initial one-month period following the judgment date.
While not a method of removing a CCJ, obtaining a Certificate of Satisfaction can help mitigate its impact on your credit profile.
Submit the form to the court with proof of payment and the £15 fee
Obtaining a Certificate of Satisfaction demonstrates responsibility to potential creditors, showing that you’ve addressed the debt. It may also facilitate future borrowing, as some lenders may be more willing to extend credit to businesses with satisfied CCJs.
Has Your Business Received a CCJ? Free Advice
While it is possible to remove a CCJ from the public register in certain circumstances, it’s crucial to be wary of dishonest credit repair agencies making unrealistic promises. As business debt and insolvency experts, we understand that a CCJ often indicates broader cash flow issues that require comprehensive solutions.
For expert guidance on managing CCJs and resolving underlying financial challenges, please call 0800 074 6757 or email info@companydebt.com. Let’s work together to put your business back on solid financial footing.
