Business CCJs keep falling - Palmers Solicitors

Business CCJs keep falling

County Court debt judgments against businesses fell in the first quarter of the year, continuing a six-year trend.

Figures released on 21 May by the Registry Trust, a not-for-profit organisation that collects judgment information in Britain and Ireland, showed that the total value of County Court judgments (CCJs) against businesses in England and Wales was £87.5 million in the first quarter of 2015, 17 per cent down on Q1 2014 and the lowest Q1 result since 2008, when it stood at £209.7 million.

The average value of a business CCJ was £3,340, eight per cent lower than in Q1 2014 and 23 per cent lower than in Q1 2008. There were 26,195 CCJs in the first quarter of 2015, the fewest since Q1 2009.

Malcom Hurlston, chairman of the Registry Trust, said: “Business in England and Wales is on an upward trend, with many fewer enterprises getting into difficulty.”

However, the number of CCJs against consumers in England and Wales over the same period shot up to 209,679, more than 20 per cent higher than in Q1 2014. Not since 2008 have there been more than 200,000 consumer CCJs in the first quarter of the year.

The total value of CCJs against consumers was up 12 per cent from Q1 2014 to Q1 2015 to £455.2 million. The average value of a consumer CCJ in England and Wales was £2,171.

Mr Hurlston said a larger proportion of consumer debt was now in the hands of debt buyers rather than the originating lenders, and the increase in the number of CCJs resulted largely from a different business model.

Before a creditor must send a warning letter to an individual or business that owes them money, advising that unless it is repaid, they will start legal action.

Seeking to negotiate an agreement with creditors before the matter goes to court is wise, as a CCJ against you can affect your credit record.

Palmers’ Debt and Insolvency specialists can provide expert advice on all aspects of the county court judgment process, to both creditors and debtors, with the aim of minimising the cost and time involved in resolving payment disputes. The Registry Trust figures suggest that the sums involved are relatively low, which is likely to make achieving a negotiated settlement easier. For more information, please contact Andrew Skinner.