County Court Judgments (CCJs) against businesses in England and Wales rose by 70 percent in Q3 2021, compared to the same quarter in 2020, according to figures released today (14.10.2021) by Registry Trust.
The number of business CCJs increased from 15,970 in Q3 2020 to 27,073 in Q3 2021. The total value of CCJ debt owed by businesses rose by one third, from £81 million to £108 million. The average value of business debt fell by over one fifth (21 percent) from £5,063 to £3,975, while the median value halved falling from £1,919 to £961 over the period.
The number of judgments against larger incorporated businesses increased by 91 percent, from 10,756 to 20,559. The total value rose from £63 million to £89 million, an increase of 42 percent. The average value fell by over one quarter (26 percent) from £5,844 to £4,332, while the median value was down 60 percent from £2,280 to £902.
CCJs against smaller unincorporated businesses also rose, by one quarter, from 5,214 to 6,514. However, the total value rose by just three percent from £18 million to £18.5 million. This meant the average value fell by nearly 18 percent from £3,452 to £2,846, while the median value was down by 14 percent from £1,405 to £1,205.
The number of High Court Judgments against businesses fell by nearly one quarter (24 percent) from 50 to 38, with the total value 62 percent lower at £52 million compared to £137 million in the same period last year. The small number of registered High Court Judgments means these figures are subject to large fluctuations.
Mick McAteer, Chair of Registry Trust, said: “Judgments against businesses in England and Wales saw large increases this quarter compared to the same period last year. At that time, Covid interventions by government and regulators, and forbearance by creditors, had kept judgment numbers at historically low levels. But, numbers have begun to rise again. It looks like Covid economic crisis is far from over for many businesses. This will be worth monitoring as recent Registry Trust research found a link between judgments and subsequent insolvencies”.