County Court Judgement (CCJ) & Winding up Petition
If you are facing the threat of a County Court Judgement or Winding up Petition, it’s important to act quickly in order to minimise the potential impact and maximise the chance of a business recovery.
County Court Judgement
A County Court Judgement, or CCJ, may be issued where an individual or company owes money to a creditor. If you are in receipt of a court claim, you have 14 days to respond with the necessary paperwork or the CCJ will be issued. This can have serious ramifications for a company and its directors.
Once a CCJ has been issued, this will be marked on the business’s credit report and, unless the debt is repaid within one month, this can affect a company’s credit ratings and an individuals’ credit scores for years to come, making it difficult to secure finance and credit in the future.
Winding up Petition
If your business fails to pay following a CCJ, and its debts exceed £750, a creditor may then choose to issue a Winding up Petition.
A Winding up Petition is an official document issued by a creditor, which calls on the Court to impose a Winding up Order, forcing a company to cease trading and ultimately resulting in the company entering Compulsory Liquidation. This action is normally taken when all other avenues to reclaim a debt have been exhausted, and is a situation that is best avoided wherever possible.
So the sooner we are able to take action, the better. The experienced team at Gibson Booth will explore the different options available to you, with the aim of avoiding liquidation and if possible working to assist your business’s recovery.
For professional assistance, contact our team today.