The number of County Court Judgments registered against businesses England and Wales has fallen by nearly 30 percent compared with last year. The first half of 2020 has seen a huge reduction compared to the same period of 2019 according to figures released by Registry Trust.
The number of CCJs against businesses fell from 65,724 in the first half of 2019 to 46,117 for the same period in 2020. This was the lowest number of business judgments registered in a half year since 2017. The total value of business judgments fell less, by 18.5 percent, from £202 million to just under £165 million.
The Coronavirus pandemic is largely thought to be the reason for this significant drop along with improved credit control by companies.
The average value of business judgments rose from £3,077 to £3,574, an increase of 16% compared to the first 6 months of 2019. The median value saw a bigger rise from £1,012 to £1,225, up 21 percent over the period.
CCJs against smaller unincorporated businesses fell by 32 percent, from 16,532 to 11,218. The total value of CCJ debt owed by small businesses in the half year fell by nearly one third from nearly £49 million to just over £33 million.
The value of judgments against larger incorporated businesses fell by 14 percent from over £153 million to under £132 million, while the number fell by 29 percent from 49,192 to 34,899. The average value rose by 21 percent from £3,120 to £3,775.
High Court Judgments against businesses rose by 579 percent from 24 to 163. But, the total value of High Court judgments against businesses grew by 768 percent from £18 million to over £155 million. As a result, the average value of High Court judgments rose by 28 percent. This suggests there was a number of very large judgments taken out in the half year.
Mick McAteer, Chairman of Registry Trust said: “Government interventions are shielding businesses against the worst economic impacts of Covid19. But, the damage to business finances could show up later this year”.
Collecting Unpaid CCJ’s remains a challenge still for many Businesses in the UK.
|Half Year 2019||Half Year 2020||Change (compared with 2019)|
|CCJs against all businesses|
|CCJs against incorporated businesses|
|CCJs against unincorporated businesses|
|High Court judgments against all businesses|
|Satisfactions registered by all businesses|