CCJ Debt Collection – Enforce Recovery of Debt

CCJ Debt Collection – Enforce Recovery Of Debt

Problem customers and late payers can cause all manner of problems for business owners in the UK. If your business has provided goods and services to a customer, it is only right that they pay.

It is common for people to take court action against their debtors when it is clear that they won’t pay. In many cases, a County Court Judgement (CCJ) will be issued against the debtor. This is a court order that is used if a debtor has failed to pay.

In the UK, there are half a million CCJ’s issued every year. If a debtor is judged to owe the money to the original creditor, they will have a CCJ issued against them. This will stay on their credit record for up to six years.

Having a CCJ made against a debtor can make it difficult for them to secure credit in the future. Creditors will be able to see this, and will most likely refuse credit.

Some debtors will still attempt to withhold payment. This is despite the threat of enforcement as well as the penalties imposed by a CCJ. If this happens, a robust and effective debt recovery process would be required.

With this in mind, there are several steps you can take to resolve the matter. In most cases, it is more beneficial and effective to hire the services of a professional. A debt collection agency will be able to resolve the matter quickly and amicably. In this article, we look at the possible solutions available for CCJ debt collection.

CCJ Debt Collection

Our team of Debt Collection Experts are happy to help with your enquiries.

CCJ Debt Collection – Debt Recovery Methods

Once a CCJ has been issued against a debtor, the amount must still be enforced. Despite the problems it would incur, some debtors will continue to withhold payment. Here are several steps that can be taken to resolve the issue and recover the money.

High Court Enforcement Officer Attendance

In many cases, a CCJ has been issued against the debtor that has proven unsuccessful. If this happens it is appropriate to reach out to a Country Court Bailiff to enforce its collection. As well as this, a High Court Enforcement Officer is also another option.

A Bailiff is permitted to enter a debtors property and seize any assets. These assets make up the value of the amount owed. High Court Enforcement Officers normally have a higher success rate than Country Court Bailiffs, due to the higher authority they have.

The use of either is normally a straightforward exercise and is often an effective way to recover money that is owed.

Charging Order

A charging order can be applied when a CCJ has been imposed upon a debtor. This order is a charge placed by the court. It charges the debtor what they owe when they buy a new property.

This charge will be added to the cost of the property and includes all court fees and administration costs. This charge must be paid and is a guarantee that you will be able to recover your money at some point.

However, you may not be repaid right away as the debtor may take their time when searching for a new property. Creditors may be able to force a sale, however, which can speed up the process.

CCJ Debt Collection - Debt Recovery Methods

Bankruptcy and Winding Up Petition

A “winding-up petition” is a county court claim that can be presented when a debtor owes more than £750. This letter of claim is a demand that payment is made, and can force businesses into voluntary liquidation. This situation occurs if the petition has been made but the debtor still chooses to withhold payment.

The debtor’s company is considered legally insolvent if it cannot meet its own financial obligations.

Hiring a Professional

Many business owners obtain a CCJ against their debtor but they are still unable to secure payment. Many even try the techniques above with no result.

Collecting a County Court Judgment CCJ can be a frustrating a costly experience when performing the task alone. In many cases, it seems like recovering money owed from the debtor’s bank account is impossible.

However, a professional debt collection agency can often provide the swiftest and most beneficial option.

The UK Debt Collection Bureau’s members are the leading recovery agencies in the country. Each one has been approved by our in-house experts and has a proven record of success.

CCJ Debt Collection

Our team of Debt Collection Experts are happy to help with your enquiries.

CCJ Debt Collection – Frequently Asked Questions

What happens if a CCJ is not paid?

If a debtor ignores the CCJ, then enforcement agents can be involved. A debt collection agency can carry out enforcement action for the collection of a CCJ in the proper manner.

Can you be forced to pay a CCJ?

If the debtor has a CCJ against them, there are several solutions available to make them pay the debt. A professional debt collection agency can perform the enforcement on behalf of the original creditor.

CCJs and your credit rating

If a CCJ has been sent, the debtor’s credit rating will be affected. This can make it difficult for both businesses and private individuals to get credit in the future.

When are bailiffs used?

Sometimes the debtor will not respond to any other means of debt collection. A county court bailiff can be instructed to enforce collection. However, it is a good idea to consider a professional debt collection agency first as they provide the most beneficial solution.

How much does it cost to collect a debt which has a CCJ?

Depending on the circumstances surrounding the individual case, the cost of debt collection can vary. Our member’s operation on a commission structure. For more information on costs, please contact us now.

Leave a comment