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How to enforce a County Court Judgment (CCJ) against a company

View profile for Jessica McSorley
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Q. You have successfully obtained a County Court Judgment against a company however; no payment has been made to satisfy the County Court Judgment. What can you do now?

A. There are several methods of enforcement available. Some of the most effective methods are as follows;

1) bailiff action;

2) obtaining a charging order; and

3) presenting insolvency proceedings.

Q. What will the bailiffs do?

A. When a bailiff is instructed to enforce a County Court Judgment they will first obtain a writ of control from the court. This allows the bailiff to enter the company’s property in order to seize and sell the company’s goods at auction to raise funds to satisfy the County Court Judgment debt.

The bailiffs can also enter into payment plans with the company who may put forward a proposal to avoid the seizing of goods. The bailiffs will collect these payments.

Q. What is a charging order?

A. If the company owns a property then a charge can be placed over the company’s beneficial interest in the property. Charging orders are most effective if there is substantial equity in the property and the company is the sole owner of the property.

The charging order does not of itself release any money. You would have to either wait for the property to be sold or make an application for an order for sale.

Q. What is the benefit of presenting insolvency proceedings?

A. If a company is deemed to be unable to pay its debts then you can present a winding up petition to the court. If a winding up order is granted then the company will fall under the control of an Official Receiver or Liquidator who will look to sell the assets of the company and make a distribution to the creditors where possible.

Q. Which method would be most effective?

A. We are able to advise you on the most effective method when taking into account all of the circumstances. For further advice please contact Jessica McSorley on jessica.mcsorley@mfgsolicitors.com or telephone 01562 820181.

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