CCJs Down in 2020 - Good News or Delaying the Inevitable?



What’s that?


Some good news from the year we all couldn’t wait to see the back of?


Surely not!


Well, it appears so…


It has been revealed that CCJs against businesses in England and Wales fell by 39% from 126, 731 in 2019 to 77, 139 in 2020.


The figures, released by the Registry Trust, also showed that the total value of CCJ debt owed by businesses fell by nearly 20 percent, from just under £401 million to £322 million.


Good trends to see?


Tentatively, that would seem to be the case and although the average value of business debt rose to £4,178 in 2020, 32 percent higher than the £3,162 seen in 2019, the overall number of judgments against larger incorporated businesses fell by 41 percent, from 94,389 in 2019 to 55,537 in 2020.


There is a bit of balancing out to be done in terms of the average debts recorded, because fewer judgments obviously mean a higher median amount of debt, but the fact that CCJs are down shows that Government support for business throughout the pandemic has provided some protection from the ‘wolf at the door’, we think.


It’s not just big business that has been protected either, as the number of CCJs against smaller unincorporated businesses fell by 33 percent, from 32,342 to 21,602, with the total value dropping from £96 million to over £67 million, down 30 percent. Again, the averages rose, as you would expect them to.


So, is this good news from a pretty dire year?


Potentially, yes, as fewer CCJs against businesses must mean that they are weathering the storm.


As ever though, we like to look at things from both sides, and we’re just starting to see an upturn in the number of CCJs again, as things start to tick back over.


We don’t want to be harbingers of doom, but could it be the case that this reduction in CCJs was only temporary.


Are the floodgates about to open?

We’ll be watching carefully...



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