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CCJ Duration: Understanding the Lifespan of County Court Judgments

Table of Contents

In Short

  • A County Court Judgment (CCJ) is issued when a business fails to pay its debts.
  • A CCJ lasts six years but can be removed if paid within one month.
  • It is possible to set aside or vary a CCJ in certain circumstances.

Tips for Businesses

To avoid lasting damage from a CCJ, pay the debt within one month. Ensure all claim forms are received and responded to promptly, and seek legal advice if you believe the claim is incorrect.

Running a business is a costly activity. For example, you may need to purchase goods in bulk to resell them or pay for services to run your business. When buying for your business, you may get credit terms from suppliers. This means you are a debtor and agree on terms on which to pay the invoice, such as a specific time frame. You must stick to your payment terms when paying your debts. Otherwise, it is possible that a business can take legal action against you for an unpaid debt, which can include action resulting in a County Court Judgment (CCJ) on your credit file, affecting your credit rating. This article will explain county court judgments CCJ’s duration so that you understand the lifespan of CCJs and how you may be able to shorten this to protect your business. 

What is a County Court Judgment (CCJ)?

A county court judgment (CCJ) or a high court judgment results from a person or business that makes a court claim against you because they believe you owe them money. They can take this action when you do not respond to their communication about this.

When a person or business takes court action, and you do not react in time, a judge may give you a judgment, which means they have decided that you owe the person who made the court claim the money. 

If you receive a county court judgment, it will detail:

  • the amount you owe;
  • whether you can pay the amount in whole or in instalments;
  • when you have to pay the debt by; and 
  • who you have to pay it to.

How Long Do County Court Judgments Last?  

A county court judgment can last as long as six years. This means the fact that you obtained it and the reason for this will be kept for this time. However, to avoid tarnishing your business reputation and making it difficult to obtain credit, you should pay the debt you owe within one month of receiving it. If so, the CCJ will be removed from the register. 

To ensure this occurs. You should:

  • let the court know you have paid it and do so in writing; and
  • send the court proof of payment.

If you miss the month’s deadline but pay in full after judgment, it will have ‘satisfied’ against it, but you will remain on the register. Again, you must present this to the court in the same manner as you do when paying within one month. 

However, your business may receive a CCJ but may be able to cancel it. You may also be able to vary it, which means changing the terms or changing the amount of instalments to pay it back.

A variation may be possible where you cannot agree to pay the total amount back. Where you fail to respond to a claim form sent to your known address, a court may decide that you can defend the claim.

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Setting Aside a CCJ

You may be able to set aside a CCJ where you have a valid defence, such as:

  • claim you do not own the claimant money; or
  • say that you did not receive a claim form from the company regarding the debt.

The latter two may occur because, for example, the court claim was sent to the wrong address. However, if you fail to respond to a court claim and it was sent to the address you are last known at, it is unlikely the court will order a CCJ.

It will only potentially do so if:

  • there is a real prospect that you will be able to defend the claim successfully; or
  • The court believes there is another good reason to vary or set aside the CCJ.

If you want to set aside a CCJ, you must apply for an order in court. You must act quickly, which should be within 30 days, although sometimes you may get 59 days. 

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Key Takeaways

If you owe someone money, they may take court action, which can result in you receiving a county court judgment (CCJ). This can occur when you ignore their correspondence or do not reply in time. A CCJ means the court has decided that you owe that person or business money. A CCJ can last as long as six years, meaning the record is current during this period, making it difficult for your business to get credit. If you pay off the total amount of the debt within one month of receiving the CCJ, you will no longer have one. If you pay the total amount after one month, your CCJ will remain on the register but with ‘satisfied’ next to it.

It may be possible to vary a CCJ to change the payment terms, and you can also sometimes set aside a CCJ. You may do this where, for example, you claim you do not owe the debt. However, if you fail to respond to the initial court claim form and receive this, you will unlikely be able to set it aside. To set aside a CCJ, you need to apply for a court order.. 

If you need help understanding county court judgments (CCJs), our experienced disputes and litigation solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

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Clare Farmer

Clare Farmer

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