Having a CCJ is quite concerning to an individual. You can do a CCJ Check on your credit report. Having one will affect any finance or loan options you may need. In this article we discuss in more detail about the CCJ.
Every month, there are thousands of country court judgments that are issued to companies in Wales and England. Receiving a country court judgment or CCJ will make trading more difficult and may lead to a particular petition for the winding of businesses.
Checks Before Someone Files For a CCJ Against Another
When the sole trader or the creditor of the company is no longer able to collect the repayment to the debt, they can file an application to the court for the issuance of a Country Court Judgment or CCJ. As a matter of fact, there is no minimum limit required for the amount for which CCJ can be applied for, it is important to instruct a creditor or solicitor to carry out the application and therefore would be an unusual thing for the debt to be a low amount. A County Court Judgement technically known as CCJ is an order made by the county court or local court to force the debtor to pay the debt.
The moment a county court judgment has been applied for, the borrower or the debtor is notified. The debtor is also given the opportunity to confirm whether the debt is owed or if he is going to have a dispute regarding the issue.
Make Sure You Do A Check On The CCJ Application
If you receive a notice of a county court judgment application and have agreed that you owe the debt, it is therefore significant for you to respond with the proposal asking how the debt will be repaid. Normally, the court will accept the proposal of a sensible plan for repayment. For example, a certain amount of money should be paid to the creditor in a monthly basis. The moment the judgment is finalized, the creditor will then have to accept the repayment plan. Creditors can no longer ad charges and interests as long as the terms of court judgments are met.
It is significant that you must not ignore the application. If you do this, the court will automatically accept the validity of the application and you have to pay the entire amount full with no option of repaying it over time.
CCJ Check Summary
If a CCJ has been issued, the debtor’s ability to do business and to trade is affected. The most obvious effect is that the credit rating is damaged. And here’s more: the judgment will be advertised in Stubb Gazette and will be recorded in company’s credit file. Once this thing happens, it will be more difficult to borrow from banks in terms of overdraft or business loan.
This is not only the problem that you are going to deal with. New clients often want to know your credit standing, they can do a CCJ check. Having a CCJ will perhaps affect their decisions.
The best thing to do is not to ignore a CCJ and do all the possible things to over come this before then creditor applies for a possible winding up action.