Steep rise in Business CCJ’s

0
171

According to figures released today by Registry Trust, adverse County Court Judgements (CCJ’s) are on the rise for Businesses in England and Wales for the first time in 8 years during 2017.

Up to 105,633 business CCJ’s were registered against in England and Wales In 2017 which showed a 305 increase from 2016 and the first year-on-year increase since 2009. The rate of increase persisted throughout the year.

The adverse business CCJ’s average value fell 16% to £2,983, and CCJ’s against unincorporated businesses fell 5%. However, the total value of business CCJ’s increased 10% to £315,131,813.

The increase in the total of adverse business CCJ’s was caused by a 54% rise in judgments against companies.

In 2017, the High Court issued 53 judgments which showed 22 fewer than in the previous year.

The average value of CCJ’s against companies fell 22% to £3,129; the average value for unincorporated businesses dropped 7% to £2,650.

Chairman of Registry Trust, Malcolm Hurlston CBE, said: “The difference between the CCJ experience of companies and smaller enterprises shows that claimants have been pursuing companies for smaller debts. It is unlikely to mean that the economic situation has worsened for companies, but they may still find credit harder to get.”

CCJ Statistics.

CCJ’s against all businesses 2017 (compared with 2016)
• Total number: 105,633 (up 30%)
• Total value: £315.1m (up 10%)
• Average value: £2,983 (down 16%)
• Median: £1,010 (down 29%)

CCJ’s against incorporated businesses 2017
• Total number: 73,539 (up 54%)
• Total value: £230.1m (up 20%)
• Average value: £3,129 (down 22%)
• Median value: £983 (41%)

CCJ’s against unincorporated businesses 2017
• Total number: 32,094 (down 5%)
• Total value: £85.1m (down 11%)
• Average value: £2,650 (down 7%)
• Median value: £1,049 (down 8%)

High Court judgments against businesses 2017
• Total number: 53 (down 22%)
• Total value: £106.3m (down 54%)
• Average value: £2m (down 35%)
• Median: £66,186 (down 48%)

Small Business Debt Collection Experts Federal Management urged caution to companies who take legal action without doing their homework.

“Simply because a CCJ is obtained, it does not guarantee payment. Legal action should always be a last resort as it is expensive, protractile and has no guarantee of success”

LEAVE A REPLY