Are Business Debts out of control as CCJs hit eight year high?

Shock statistics CCJ’s registered against business and limited companies have shot up as businesses struggle to pay their debts and creditors get tough.

The quantity of county court judgments issued to businesses in England and Wales reached 192,100 in 2008, a record level since 2000 according to new data.

Figures from the Registry Trust, a not for profit company that operates the registry of judgments and fines for the Ministry of Justice, shows this is a year on year escalation of 3.6 per cent. It also marks the fourth consecutive year in which the quantity of judgments has risen.

County Court Judgments against Limited Liability Companies rose 6.5 per cent from 95,900 in 2007 to 102,200 in 2008, while judgments against non corporates rose 0.5 per cent from 89,500 to 89,900.

Malcolm Hurlston, chairman of Registry Trust, said: “The general upward trend in commercial judgments shows that 2008 has been a tough year for businesses, particularly in the small and medium-sized enterprise (SME) sector. This looks set to continue into 2009, when the impact of the recession really starts to hit. We expect to see a further increase in the number of commercial judgments this year.”

For business owners and Directors who are affected by this article or indeed are one these statistics please feel free to contact Enable Finance who can offer specialist business debt advice or help show you ways of resolve your creditor pressure