If you are owed money by a business or individual and they have failed to pay, you may consider applying for a County Court Judgment (CCJ) against them. A CCJ legally requires the defendant to repay the debt.
However, obtaining a CCJ is just the first step – enforcing it can be difficult, especially without legal support. This guide will take you through the key steps in applying for and enforcing a CCJ with the help of solicitors.
Applying for a County Court Judgment
Applying for a CCJ starts the legal process of obtaining a court judgment against the defendant that formally demands repayment of the debt owed.
Determine if a CCJ is Appropriate
Before applying for a CCJ, consider:
- If you have proof of the debt: e.g. copies of invoices signed by the defendant.
- If you have the defendant’s full legal name and current address.
- If it’s worth pursuing: factor in legal costs versus the size of the debt. Also, consider if the defendant has the means to pay.
- If the defendant owes multiple debts: applying for one CCJ to cover all debts can be more efficient.
Seeking legal advice at this stage can help determine if a CCJ is the right course of action.
Letter Before Action
As part of the debt recovery process, you must send the defendant a Letter Before Action which:
- Clearly demands payment within 14 days.
- States you intend to issue court proceedings if payment is not received.
- Encourages the defendant to get in touch to discuss payment plans.
Allow a reasonable time for delivery and response before progressing and keep copies of all correspondence.
If possible, send the letter by recorded delivery or other tracked service for evidence, before following up with an email or phone call to ensure receipt.
Making the Claim
To issue a CCJ you must submit a claim form (N1) either online using the Money Claim Online (MCOL) service, or by post, depending on the court. You will need:
- Defendant’s name, address and details of the debt.
- Any evidence supporting your claim.
- Correct court fee – seek legal advice on the appropriate court and fee.
The court will “serve” the claim by posting it to the defendant. They have 14 days to respond.
If the Defendant Responds
If within 14 days the defendant issues an Acknowledgement of Service indicating intent to defend the claim, the Defandant will have a further 14 days to submit a defence. If a defence is filed, the case will proceed to a court hearing.
If they admit the claim or part of it, the court can enter judgment for the undisputed amount. Legal representation is advisable for any hearing.
Without legal advice, assessing any defence or counterclaim can be difficult. Experienced solicitors can quickly determine the strength of your case if it goes to court.
If the Defendant Does Not Respond
If there is no response within 14 days, you can request a CCJ by default. Send the court:
- A Request for Judgment form (form N225 or N227).
- If you are claiming interest, a breakdown of how it was calculated.
The judge will then decide whether to enter a CCJ. An interest of 8% can be added from this point.
Costs Recovery
Once you have a CCJ, apply to the court to recover fixed costs using form N260. Also, consider other recoverable costs like legal fees by providing detailed evidence to the court.
Itemise all costs from the initial debt recovery letter through to enforcing the CCJ, including charging orders, enforcement agent fees, and bankruptcy petitions.
Enforcing a CCJ
With a CCJ granted, obtaining payment can be challenging without legal expertise. Consider the following enforcement options:
Request Voluntary Payment
Write to the defendant advising of the CCJ and requesting payment within a reasonable timeframe, e.g. 14 days. Remind them that further action will escalate costs.
At this stage, a solicitor can negotiate constructively on your behalf, often achieving a settlement (legal letters carry more authority).
Enforcement Agents
Instruct High Court Enforcement Officers or County Court Bailiffs to seize goods to the value of the debt plus fees if payment is not received.
Enforcement agents are regulated so solicitors can guide appropriate use, protecting your position. Required paperwork like writs of control must be completed accurately.
Charging Order
Apply to put a charging order on the defendant’s property forcing its sale – the funds from the sale are then used to settle the debt. This option is legally complex, so it’s very important to have a solicitor.
Solicitors can obtain title deeds, identify charges and submit the correct forms to court. They will also handle enforcement, liaising with bailiffs regarding seizure and sale.
Attachment of Earnings Order
If you know the defendant’s employer, apply for an order requiring regular deductions from their earnings towards the debt.
Understanding employment law around attachments of earnings is vital, so legal advice prevents errors and challenges.
Insolvency Proceedings
For debts over £5,000, applying to make the defendant bankrupt can recover money. For limited companies, liquidation may be appropriate.
Instruct an experienced solicitor in insolvency law to petition for bankruptcy or liquidation. They will issue statutory demands, prepare winding up petitions and appoint receivers if needed.
Enforcement Agents (Again)
Once other enforcement options are exhausted, enforcement agents can be instructed again to seize assets like vehicles. Continued non-payment allows this.
At this late stage, physical seizure of goods often prompts settlement. Solicitors will ensure bailiffs act lawfully, for example obtaining enforcement warrants correctly.
Why Use Solicitors?
Pursuing a CCJ and enforcing payment without legal advice is very challenging. The key benefits of using specialist solicitors like Heald Nickinson include:
- Expertise: solicitors regularly apply for and enforce CCJs so have the right skills and knowledge.
- Cost Savings: they will prevent procedural issues that can increase time and costs through court claims and enforcement proceedings.
- Compliance: solicitors ensure all procedures and paperwork adhere to legal requirements, protecting you from challenges.
- Credibility: defendants take legal action more seriously, improving voluntary repayment before enforcement is needed.
Going through the courts to obtain a CCJ and enforce repayment of debts owed to you is complex but achievable, especially with legal support.
Specialist debt recovery solicitors like us make the process significantly more efficient and effective, improving your chances of successfully recovering the money through appropriate enforcement procedures. With both legal expertise and experience on your side, a CCJ can be secured and enforced effectively.
Contact us today if you need help recovering the money you are owed.
