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What impact does a ccj have on a Ltd company?

Discussion in 'General Business Forum' started by anonuk, Feb 13, 2020.

  1. anonuk

    anonuk UKBF Regular Free Member

    302 44
    Other than the lack of ability to obtain credit, what implications does a ccj have on a limited company?

    We have been trying to resolve a dispute with a creditor with whom we already have a Tomlin order, and they are refusing to be reasonable, and are insistent on filing for judgement against us.

    I have offered them additional funds towards what we owe them, and have expressed the gravity of the situation but they are just not interested.

    So, what I’m left wondering is, does a court offer the option of paying a ccj by affordable instalments when the defendant is a Ltd company, or does the judgement simply require payment in full?

    If we end up with a CCJ against our company, and we can only pay by instalments, how does that affect us as a business?

    I am trying to stay positive but this is becoming increasingly more difficult and I’m contemplating just giving up and closing the doors.
     
    Posted: Feb 13, 2020 By: anonuk Member since: Feb 27, 2014
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    25,410 3,100
    Apart from paying the agreed amount per month - none.
    CCJ more of an impact when you stop paying for it. Then threatening calls etc.

    Had a CCJ of hmmm.... around £16k. Offered on the court papers similar to what I had offered and had rejected by the creditor. Provided a bunch of figures.
    Court rubber stamped it and paid about £8k off the debt over time.

    Oh and its amazing how suddenly dozens of companies start offering you their legal services before the paperwork even arrives!
     
    Posted: Feb 13, 2020 By: Mr D Member since: Feb 12, 2017
    #2
  3. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    5,035 1,976
    You are correct that the major impact is on your ability to get credit - including trade credit accounts and existing facilities.

    However if your creditor is minded they can make things quite uncomfortable by escalating to the high court and sending in HCEOs
     
    Posted: Feb 13, 2020 By: Mark T Jones Member since: Nov 4, 2015
    #3
  4. anonuk

    anonuk UKBF Regular Free Member

    302 44
    Can they still escalate to the high court etc if I were to agree a repayment proposal with the small claims court?
     
    Posted: Feb 13, 2020 By: anonuk Member since: Feb 27, 2014
    #4
  5. KAC

    KAC UKBF Ace Free Member

    1,317 305
    Is the company solvent or should you be speaking to an insolvency practitioner such as amongst other @Lisa Thomas @Gavin Bates ?
     
    Posted: Feb 13, 2020 By: KAC Member since: May 7, 2017
    #5
  6. anonuk

    anonuk UKBF Regular Free Member

    302 44
    On a month to month basis, the company is perfectly solvent in that it can pay its monthly bills with no problem, however, should a judge decide we need to pay the remaining £9,000 of this debt right away, we would not be able to afford it as I’m sure would be the case for a lot of companies.

    Whether this makes us insolvent I don’t know if I’m honest.
     
    Posted: Feb 13, 2020 By: anonuk Member since: Feb 27, 2014
    #6
  7. simon field

    simon field UKBF Legend Full Member - Verified Business

    5,022 1,858
    How long will it take you to pay the majority of it off?
     
    Posted: Feb 13, 2020 By: simon field Member since: Feb 4, 2011
    #7
  8. Mr D

    Mr D UKBF Legend Free Member

    25,410 3,100
    So offer a monthly payment and show that's reasonable for the income and expenditure.

    My creditor was determined to get a CCJ so they got one. What they didn't get was what they wanted, much higher repayments.
     
    Posted: Feb 13, 2020 By: Mr D Member since: Feb 12, 2017
    #8
  9. simon field

    simon field UKBF Legend Full Member - Verified Business

    5,022 1,858
    Just keep paying it, as much as you can. Weekly, randomly, just whatever. ignore their threats.

    The court process is really sloooow so by the time anything happens the amount will have changed. Pay a good lump straight away if possible, then just whatever you can whenever you can. Tie them up with payments!
     
    Posted: Feb 13, 2020 By: simon field Member since: Feb 4, 2011
    #9
  10. anonuk

    anonuk UKBF Regular Free Member

    302 44
    We imagine we would be able to completely pay it off by the end of this year as we typically have a really good November/December.

    We have offered monthly payments. The creditor and ourselves agreed a Tomlin order but they are claiming to have not received four of the payments so we are waiting for our bank to investigate that. We have offered to bring the account up to date with what should have been paid via the Tomlin order but they’re simply not interested.

    I think this is the route I’m going to try. I’m semi reluctant to pay them while everything is up in the air but I want to do everything I can to stop the company becoming insolvent. If I concentrate on getting the account back up to date in the next week or so, hopefully that will give me a stronger position to defend their claim of default as well.
     
    Posted: Feb 13, 2020 By: anonuk Member since: Feb 27, 2014
    #10
  11. Mr D

    Mr D UKBF Legend Free Member

    25,410 3,100
    Presuming the bank has made all the payments to the same account I'd also suggest the other company check on things at their end too. You can show proof of payment.
    Misallocated payments perhaps?
     
    Posted: Feb 13, 2020 By: Mr D Member since: Feb 12, 2017
    #11
  12. anonuk

    anonuk UKBF Regular Free Member

    302 44
    We have submitted proof of the payments but they say they’ve checked and definitely not received them. It’s not consistent either, as in there’s been several payments then a missing payment then more payments then a missing payment etc (we’ve been making the payments to the debt company rather than the creditor, and all correspondence has been with the debt company).

    We have even offered to re-pay all four missing payments. They have just set their mind on judgement and not budging.
     
    Posted: Feb 13, 2020 By: anonuk Member since: Feb 27, 2014
    #12
  13. simon field

    simon field UKBF Legend Full Member - Verified Business

    5,022 1,858
    So the payments have left your account but not reached the debt company?
     
    Posted: Feb 13, 2020 By: simon field Member since: Feb 4, 2011
    #13
  14. anonuk

    anonuk UKBF Regular Free Member

    302 44
    Yes, just 4 of the payments out of 12. 2 of which I was never told were still outstanding.
     
    Posted: Feb 13, 2020 By: anonuk Member since: Feb 27, 2014
    #14
  15. Mr D

    Mr D UKBF Legend Free Member

    25,410 3,100
    Presuming the company bank received the payments then someone in the company there made a mistake.
    By accident or on purpose.
     
    Posted: Feb 13, 2020 By: Mr D Member since: Feb 12, 2017
    #15
  16. anonuk

    anonuk UKBF Regular Free Member

    302 44
    That’s my thinking too but at the moment it appears to be my word against there’s :(
     
    Posted: Feb 13, 2020 By: anonuk Member since: Feb 27, 2014
    #16
  17. simon field

    simon field UKBF Legend Full Member - Verified Business

    5,022 1,858
    I’d be sending future payments directly to your creditor, bypass the debt company until you’ve established with the bank (do this tomorrow) who they’ve sent your money to.
     
    Posted: Feb 13, 2020 By: simon field Member since: Feb 4, 2011
    #17
  18. Alison Moore

    Alison Moore UKBF Enthusiast Full Member

    735 157
    If you've sent them payments, then it sounds like they have just mis-allocated the payments. Keep on at them until they sort it out as it sounds like it's their mess. If you can show that the payments left your account and reached an account owned by them (or an account shown on their paperwork) then it's their error. Phone them, find someone who is responsible (basically make it their problem), then follow up with proof via letter. If it goes to court, no judge is going to find against you when you've been making payments and trying to rectify. Not much help with the CCJ which will effect your credit lines though.
     
    Posted: Feb 14, 2020 By: Alison Moore Member since: Aug 4, 2016
    #18