County Court Judgments for Debt Recovery: A Complete Guide for UK Businesses

When a business debt goes unpaid and informal demands have failed, obtaining a County Court Judgment (CCJ) is often the most effective next step. A CCJ converts an overdue invoice into a legally enforceable court order, giving you access to a range of powerful enforcement tools that can compel payment. Understanding the process in advance helps you move quickly and avoid costly delays.

This guide covers every stage of the CCJ process in England and Wales: from deciding whether to issue a claim, through to enforcement if the debtor still refuses to pay.

What Is a County Court Judgment?

A County Court Judgment is a formal court order issued by the County Court in England and Wales, confirming that a debtor owes you money and is required to pay it. Once issued, the judgment carries legal authority, is registered on the debtor’s credit file, and gives you access to enforcement mechanisms that are not available before judgment.

CCJs are used for debts of any size, from a few hundred pounds to many thousands. They apply to both consumer and commercial debts, and can be obtained against individuals, sole traders, partnerships, and limited companies.

The process is separate from insolvency proceedings. If you suspect a debtor company is insolvent, take specialist advice before issuing a claim, as different routes may be more appropriate.

Before You Issue a Claim: The Pre-Action Steps

Before issuing County Court proceedings, you must follow the Pre-Action Protocol for Debt Claims (for consumer debts) or the general pre-action conduct requirements (for commercial debts). Failure to follow these steps can result in cost penalties even if you win the case.

The key pre-action steps are:

• Letter Before Action (LBA): Send a formal written demand giving the debtor a reasonable period to pay. For commercial debts, 14 days is typical. The LBA should state the amount owed, the basis for the debt, interest claimed, and the deadline for payment.
• Response period: Allow the debtor time to respond. If they dispute the debt, you must consider their response before issuing proceedings.
• Statutory interest: Under the Late Payment of Commercial Debts Act 1998, you are entitled to charge 8% above the Bank of England base rate on overdue B2B invoices. Include this in your pre-action letter.

A professional letter before action from a debt collection agency is often enough to prompt payment without needing to go to court at all. Jack Russell’s initial instruction process typically begins with formal demand letters on headed agency paper, which significantly increases the pressure on the debtor before legal proceedings become necessary.

Issuing a County Court Claim

If the pre-action demand fails, you can issue a claim through the court system. The main routes are:

Money Claim Online (MCOL)

MCOL is the online portal for issuing straightforward debt claims up to £100,000. It is fast, available 24 hours a day, and significantly cheaper than paper-based claims issued at a court counter. To use MCOL, the claim must be for a fixed sum of money, and you must have a UK address.

County Court Business Centre (CCBC)

For bulk claims or paper-based submissions, the CCBC in Northampton handles large volumes of County Court claims. This is the route used by many professional creditors and debt collection agencies when managing multiple matters.

Local court counter

For complex claims or where you prefer face-to-face assistance, you can issue a claim at your nearest County Court hearing centre. This option is less commonly used for straightforward debt recovery.

Court Fees

Court fees are payable when you issue the claim and can be recovered from the debtor if you win. The current fee structure (2026) for online claims is:

• Up to £300: £35
• £300.01 to £500: £50
• £500.01 to £1,000: £70
• £1,000.01 to £1,500: £80
• £1,500.01 to £3,000: £115
• £3,000.01 to £5,000: £205
• £5,000.01 to £10,000: £455
• £10,000.01 to £200,000: 4.5% of the claim value

Paper-based fees are slightly higher. Check the current fee schedule on GOV.UK before issuing, as fees are reviewed periodically.

What Happens After You Issue the Claim?

Once the claim is issued, the court serves it on the debtor. The debtor then has 14 days to respond. They can:

• Pay in full: The matter is resolved. You notify the court.
• Admit the debt: The debtor may admit all or part of the debt and request time to pay. The court can issue a judgment on admission.
• File a defence: The debtor disputes the claim. The case proceeds to a hearing, allocated to the small claims track (under £10,000), fast track (£10,000 to £25,000), or multi-track (over £25,000).
• Ignore the claim: You can apply for a default judgment immediately after the 14-day response period expires. This is the most common outcome for undisputed commercial debts.

A default judgment is issued without a hearing. You simply complete the judgment application form through MCOL or the relevant court, and the judgment is issued, typically within a few days.

Enforcement Options After Judgment

Obtaining a CCJ is not the end of the process if the debtor still does not pay. You then have several enforcement routes available:

County Court Bailiffs

You can instruct County Court Bailiffs (warrant of control) to attend the debtor’s premises and seize assets to the value of the debt. This is effective for smaller debts and debtors with physical assets. A warrant of control costs £121 to apply for (recoverable from the debtor).

High Court Enforcement Officers (HCEOs)

For judgments of £600 or more, you can transfer the CCJ to the High Court and instruct a High Court Enforcement Officer. HCEOs operate faster than County Court Bailiffs, have wider powers, and typically have higher recovery rates. They charge a compliance fee (£75 plus VAT) at the point of transfer, but further fees are recoverable from the debtor on enforcement.

Charging Order

If the debtor owns property, you can apply for a charging order, which secures your debt against their interest in the property. The debt is then repaid when the property is sold. This is a longer-term route but provides security where the debtor has equity.

Attachment of Earnings Order

For individual debtors in employment, you can apply for an attachment of earnings order. The court instructs the debtor’s employer to deduct a fixed amount from their salary each pay period until the debt is cleared. This is not available against self-employed debtors or company directors.

Third Party Debt Order

A third party debt order (formerly a garnishee order) freezes money held by a third party on behalf of the debtor, most commonly a bank account. Once frozen, the funds are paid to you in satisfaction of the judgment. It requires knowledge of where the debtor holds their accounts.

Timelines: What to Expect

For an undisputed commercial debt where the debtor does not respond:

• Issue claim: Day 1
• Court serves claim on debtor: Day 3 to 5
• 14-day response period expires: Day 19
• Apply for default judgment: Day 20
• Default judgment issued: Day 22 to 25
• Enforcement instruction (if needed): Day 26 onwards

If the debtor disputes the claim, a small claims hearing is typically listed within two to four months of the defence being filed, depending on local court capacity.

CCJs Against Limited Companies

The CCJ process against a limited company is identical to that against an individual, with one important difference: enforcement is limited to the company’s assets. Directors are not personally liable for company debts unless they have provided personal guarantees.

If you hold a personal guarantee from a director, you can issue separate proceedings against them personally. If the company has entered administration or liquidation, court proceedings against the company are usually stayed and you must instead submit a proof of debt to the insolvency practitioner.

When Professional Help Makes Sense

Many businesses attempt to navigate the CCJ process themselves for small claims, and for clear-cut debts under £1,000 this is often feasible. However, professional debt collection agents and solicitors add significant value in several situations:

• The debtor has filed a spurious defence and the case needs litigation management
• The debt is large enough that a mistake could be costly
• You need to recover multiple debts simultaneously without diverting internal resource
• The debtor is a company and you need enforcement expertise to locate and seize assets
• You want to maximise late payment interest and costs recovery under the Late Payment Act

Jack Russell Debt Collection handles the entire process from pre-action demand through to enforcement, on a no win no fee basis for qualifying commercial debts. Contact us for a free assessment of your outstanding debt.

Disclaimer: This article is for general information purposes only and does not constitute legal advice. Court fees and procedures may change. Always verify current fees and rules on GOV.UK or seek specialist advice for your specific circumstances.