A judgment debt is an amount a court has formally ordered a person or company to pay, usually after a creditor has taken legal action. For companies, the most common form is a County Court Judgment, or CCJ.
Why lenders look at them
A judgment debt against a company is recorded and visible to others. It signals that the company did not settle a debt and a creditor went to court, which can affect how lenders view the business.
What happens next
If a judgment is satisfied (paid), that can be recorded too. Unsatisfied judgments tend to carry more weight in a lenders assessment.
- A CCJ is a court order to pay.
- It appears on the companys public record.
- Settling it and recording that can help over time.
Credicorp assesses each limited company and LLP on a rounded view. If your business has a judgment on record, being open about the background helps us understand the full picture.
See also: Does a CCJ against my company affect eligibility?, What is a holding company? and What does 'arrears' mean and will it affect my credit file?.