Data gathered from the Registry Trust shows that there were a total of 26,195 CCJs issued against companies within England & Wales in 2015, showing a massive 10% decrease compared with figures released for the same period of 2014.
Also seeing a significant decrease was the average value of a CCJ issued. The average for the first quarter was £3,340.00 which represented an 8% decrease for the same period last year.
Malcolm Hurlston CBE, Chairman of the Registry Trust commented “Business in England & Wales is on an upward trend with many fewer enterprises getting into financial difficulty”
However, Paul Davies of debt collection agency, Debtcol warned that “whilst the figures, at first glance, were encouraging, there may be other reasons for the fall”.
“Many creditors have become disillusioned by the Court system and in a significant number of instances it has been proven not to be the best way to collect outstanding debt”.
“Creditors and in particular those advising them, should consider all the circumstances of a particular debt and the debtor’s ability to pay”.
“Additionally, with the large increases in County Court fees seen in March (in some cases up by 600%) I suspect fewer creditors are favouring the court system and this year I fully expect the number of CCJs to continue to fall significantly”.
“A bespoke approach, using an alternative method, is likely to result in recovery being made sooner and without incurring both legal and court costs, which ultimately might prove to be unrecoverable”.
“Court action should always be seen as a last resort, but inevitably may be your only course of action”.
“Any fall in CCJs is, of course, welcome but unpaid debt remains a concern for many businesses and they should not become complacent when dealing with their debtors”.
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