A creditor may obtain a county court judgement (‘CCJ’) or high court judgement if a company has not settled a debt. A CCJ in itself has little impact however if it is not settled or satisfied then it will be recorded on a public register for a period of six years. This can make obtaining further credit difficult or more expensive. In addition an unsatisfied CCJ will be evidence that the company is insolvent and in event of formal insolvency may be used to support allegations of wrongful trading.
If the CCJ debt remains unsatisfied then a determined creditor may seek to enforce it, typically by obtaining a charge over specific company property or, more commonly, by applying to court for a winding up petition and subsequent order (for compulsory liquidation).
If your company receives a CCJ and you’re unable to settle the debt then it is essential that professional advice is sought.