Obtaining a County Court Judgment (CCJ) is an important step in recovering money owed to your business. However, obtaining a judgment does not necessarily mean you will receive payment.
If a debtor fails to pay a CCJ, you may need to take further action to enforce the judgment. For qualifying debts, High Court enforcement can provide an effective route to recovering money that remains outstanding.
At Paragon Credit Management, we help businesses pursue unpaid judgments and navigate the process of taking qualifying CCJs forward for High Court enforcement.
What happens after you obtain a CCJ?
A CCJ confirms that a debtor owes you money and sets out the amount that must be paid. It does not guarantee payment.
If the debtor pays as ordered, no further action is required.
If they fail to pay, however, the judgment creditor can consider the enforcement options available.
These can include:
- A warrant or writ of control
- A third-party debt order
- A charging order
- An attachment of earnings order, where applicable
- Other enforcement procedures
The most appropriate option will depend on the circumstances of the debtor, the value of the judgment and the assets or income available.
For many businesses, High Court enforcement can be an effective option where the judgment qualifies.
What is High Court enforcement?
High Court enforcement is a process used to enforce certain money judgments through the High Court Enforcement Officers and Enforcement Agents.
Where a County Court Judgment qualifies, it can be transferred to the High Court for enforcement. A writ of control can then be issued, allowing authorised enforcement agents to take steps to recover the judgment debt.
This may include taking control of eligible goods belonging to the debtor where payment is not made, and where necessary, selling the goods to pay the monies owed.
The process provides a formal route for pursuing payment when a debtor has failed to comply with a court judgment.
Can every CCJ be enforced through the High Court?
No. Not every CCJ is eligible for High Court enforcement.
The value and nature of the judgment need to be considered, as well as any restrictions that may apply to the particular debt.
Generally, money judgments of more than £600 may be eligible for enforcement through the High Court, although there are exceptions and specific rules that apply.
It is therefore important to establish whether your judgment qualifies before starting the enforcement process.
At Paragon Credit Management, we can assess your judgment and help determine the most appropriate route to recovery.
What is a writ of control?
A writ of control is a legal document used to authorise enforcement of a qualifying judgment through the High Court.
Once a writ has been issued, enforcement agents can take steps to recover the outstanding debt.
Where appropriate, this can involve taking control of eligible goods belonging to the debtor.
The ultimate aim is to secure payment of the judgment debt. This may happen through the debtor making payment or, where necessary, through enforcement against goods in accordance with the relevant rules.
How does High Court enforcement work?
While every case is different, the process generally involves several stages.
1. Reviewing the judgment
The first step is to review the CCJ and establish how much remains outstanding and whether it is suitable for High Court enforcement.
It is also important to consider the likelihood of recovery before proceeding.
2. Transferring the judgment
Where the judgment qualifies, the necessary steps can be taken to transfer it to the High Court for enforcement.
3. Issuing the writ
Once the requirements have been satisfied, a writ of control can be issued and the enforcement process can begin.
4. Contacting the debtor
The enforcement process gives the debtor an opportunity to pay the outstanding amount.
If payment is not made, enforcement agents may take further action in accordance with the relevant legislation and procedures.
5. Recovering the debt
The objective is to recover the amount owed under the judgment.
The outcome will depend on the debtor’s circumstances, their ability to pay and whether there are sufficient recoverable assets.
Why consider High Court enforcement?
For a business that has already obtained a CCJ, having the judgment remain unpaid can be extremely frustrating.
You have established through the courts that the money is owed, yet the debtor has still failed to pay.
High Court enforcement provides a way to escalate the matter and actively pursue recovery.
It can be particularly useful where:
- The debtor has ignored previous requests for payment.
- You have obtained a CCJ but payment has not been made.
- The judgment qualifies for High Court enforcement.
- There is reason to believe the debtor has assets or goods that may be available for enforcement.
- Your internal credit control efforts have been exhausted.
- You do not have the time or resources to manage enforcement yourself.
High Court enforcement cannot guarantee that a debt will be recovered. If a debtor has no money or recoverable assets, enforcement may be unsuccessful.
This is why assessing the circumstances of the case before proceeding is important.
High Court enforcement for commercial debts
High Court enforcement can be particularly valuable when businesses are trying to recover commercial debts.
For example, a supplier may have provided goods or services to another business and subsequently been left with an unpaid invoice. After attempting to recover the debt, the supplier obtains a CCJ.
If the debtor still refuses to pay, High Court enforcement may provide the next step towards recovery.
Rather than continuing to send reminders and make repeated telephone calls, the creditor can escalate the matter through a formal enforcement process.
This can also remove much of the administrative burden from the creditor’s own team, allowing them to concentrate on running their business.
What if you do not know what assets the debtor has?
Knowing whether a debtor has the means to pay can be an important part of any enforcement strategy.
A debtor may have changed address, stopped responding to correspondence or changed their business circumstances.
Where there is limited information available, tracing and investigation can help establish the debtor’s current circumstances and inform the recovery strategy.
At Paragon Credit Management, we can help businesses assess the available information and determine the most appropriate approach to recovering an outstanding judgment.
How long can you enforce a CCJ?
A CCJ should not simply be left indefinitely and can only be enforced for six years following the date the CCJ was entered.
Where possible, acting promptly can help avoid unnecessary complications and give you a clearer route towards recovery. The earlier action is taken, the more chance there is of achieving a successful outcome.
What happens if High Court enforcement is unsuccessful?
Unfortunately, enforcement cannot guarantee recovery.
A debtor may have limited assets, insufficient income, have ceased trading or have other financial circumstances that make recovery difficult.
If High Court enforcement is unsuccessful, there may still be other options available depending on the circumstances.
The important thing is not to assume that an unpaid judgment should simply be written off. A review of the debtor’s current position may identify alternative recovery options.
How Paragon Credit Management can help
Obtaining a CCJ is only one part of the debt recovery process. If the debtor still refuses to pay, knowing what to do next can be just as important.
Paragon Credit Management provides High Court enforcement and judgment enforcement services, helping businesses progress unpaid judgments towards recovery.
Our team can assess your circumstances, review the judgment and help determine whether High Court enforcement is an appropriate option.
We can also assist with the process of progressing qualifying judgments for enforcement, helping you navigate the next stage without having to manage the process yourself.
For businesses, this means less time spent chasing unpaid debts and more time focused on running the company.
Do you have an unpaid CCJ?
An unpaid CCJ should not necessarily be the end of the recovery process.
If a debtor has failed to pay, High Court enforcement may provide an effective way of escalating the matter and pursuing the money you are owed.
At Paragon Credit Management, we specialise in helping businesses recover outstanding debts and enforce qualifying judgments.
If you have an unpaid CCJ, contact Paragon Credit Management today to discuss your enforcement options and find out how we can help you recover the money you are owed.
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