I’ve received a CCJ that I can’t pay
If your company has received a County Court Judgment (CCJ) because you’ve been unable to pay a debt you should act quickly to prevent matters from escalating.
What is a CCJ?
A CCJ allows a creditor to take one of two potentially very serious actions to recover their money, both of which can be very damaging if not dealt with quickly. These are:
- Issue a winding up petition
- Instruct a bailiff to uplift company assets (vehicles, equipment, stock etc.)
If the CCJ is a result of cash flow problems, there is a wide range of options to deal with these. But the longer you leave it the narrower these get.
How we can help?
We can talk you through your options and help you to negotiate with creditors, raise additional borrowing (not as hard as you think, but it must be done sustainably) or consider protective actions such as a Company Voluntary Arrangement to stop creditor action whilst you try to turn things around.
If the position is so serious that you think the company has no future, you are risking personal liability if you allow the company to continue to trade whilst the position gets worse. Although directors aren’t directly liable for a company’s debts, if a company continues to incur losses when the directors should have ceased trading, then directors can be ordered to compensate the creditors for this under what is known as Wrongful Trading legislation. Continuing to trade when it is no longer appropriate to do so also creates a risk that you could be disqualified as a director, potentially preventing you from acting as a director for a number of years.
Whether you wish to continue to trade or close your company, it’s absolutely imperative that you take advice quickly. Contact us now to see how we can help. We’ll talk you through your options on a no-obligations basis and try to help you solve the problem.
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