If your company receives a County Court Judgment (CCJ) there are a number of options open to you. If it is affordable the debt should be paid. If not then even at this stage it is not too late to negotiate a payment plan. If this is not possible a company debt solution should be considered.
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Negotiate staged payments for a CCJ Debt
A County Court Judgement (CCJ) may have been issued against your company requiring the immediate and full repayment of a debt. But what if the company does not have the funds to cover this? Even at this point you can still attempt to negotiate staged payments.
First of all you should contact the creditor directly. Explain that the company is unable to pay the debt immediately and offer an affordable payment schedule. It might be worth mentioning that if agreement cannot be reached you will have to go back to the Court for their input.
If the creditor refuses staged payments you can apply to the Court for a variation of the Judgement. You will need to submit form N245 to the Court.
Use a Debt Solution to overturn a Company CCJ
If the company cannot afford to pay the debt you must not ignore a CCJ. If no reasonable attempt to pay the debt is made the creditor could then take further action against the company. Ultimately this could lead to a Winding Up petition being issued.
Your company may be struggling with a number of debts. If this is the case trying to negotiate with all of them may simply be too difficult and time consuming. As such you should then consider a company debt solution.
If you feel that some payments can be made a Company Voluntary Arrangement (CVA) may be a sensible option. Once the Arrangement is in place any CCJs currently issued against the company are overturned. In addition no further Judgments can be applied for.
If the company has no realistic means of repaying the debts it owe you could consider Liquidation. In these circumstances a Pre Pack solution will help you to set up a new company which can then begin to trade debt free.