When dealing with an unpaid invoice, a common situation you may find yourself experiencing is having to get involved with a county court judgment. We know how challenging it can be to find yourself not receiving payment for your goods or services, but we are here to support you should you find yourself in this situation. Check our page here for more information and to discover how we can assist your business in the upcoming months. Now let’s take a look at what a county court judgment is and in what situation you would opt to use this.
What is a County Court Judgment?
A county court judgment is when someone takes court action against another party, which is usually done when you owe them money. If you don’t respond to this action, then you may receive this type of judgment, which you need to respond to by the date that’s specified on either the letter or the email that’s received. This is a court declaration to formally state that you own this money, and you’ll need to pay it as soon as possible.
When you send or receive a county court judgment, it usually arrives by post and states how much money is owed, how you will pay for this, and whether there is an option for instalments for the payments. There will also be a deadline for the payment and information about who you need to pay the money. These resources are kept for up to six years unless you can pay the full amount that’s stated within just one month. This can make it a huge challenge to get credit in the future, which is something that no one wants to have on their records. As a business owner, you won’t want to go down this route unless you have to, but during trying times, this is one way to ensure you receive the money you deserve for your work or goods.
How to React When a County Court Judgment is Received
For individuals who find themselves in the situation of receiving a county court judgment, you’ll want to make sure you pay back the money as soon as possible. However, we know that many people have reasons why they are unable to do this. In this case, you can ask to change the terms of the judgment or to pay the money back in smaller instalments. For companies, by being flexible with the individuals or companies who owe you money, you’ll be far more likely to get your money back in the long run. There are usually different options when it comes to paying the judgment, which helps everyone to end up with the issue resolved in the long run.
There are also reasons why someone may ask to cancel the county court judgment process, such as if they did not owe the money in the first place. If you did not receive the original claim either that said you owed someone money, this could also be changed to offer you a fairer timeline for payment. The main thing to keep in mind for anyone who does receive this type of document is to never ignore it. This could result in you being taken to court and forced to pay up the money you owe.
We know that it’s very daunting to receive any type of paperwork for your debts, but the sooner the issue is resolved, the better your financial future will be. For companies, we recommend that you try and follow the correct procedures to avoid ending up in this situation. However, this is a good way to ensure you receive the money you are owed if you are having serious issues with getting payments on time. There are also different rules for businesses and individuals in Scotland, so if you are operating here, make sure you learn how to deal with overdue invoices for this area.
As you can see, a county court judgment is a good way to deal with an overdue invoice if you get into a difficult situation with a client. Unpaid invoices are something that no one wants to deal with, but they are sadly part of the everyday reality of operating a business. By learning what a county court judgment is, you can decide if this is something you need to use for any of your clients in the future. We’ll be here to support you should you need any help deciding what type of paperwork you need to use to receive payments.
Contact us today by calling our professional team today on 0330 229 1991 or email your queries to memberbenefits@directroute.co.uk. for more information about county court judgments and when they could be of use to your business. Our team knows the best ways to resolve unpaid invoices and will help your business to go from strength to strength in the future when dealing with difficult clients.
Read: When to escalate unpaid invoice to debt collection services