A County Court Judgment (CCJ) against your company can be set aside — legally cancelled — if the court agrees it was entered in error, or if your company has a genuine, real prospect of successfully defending the claim. Set-aside applications are common and often succeed, but courts expect you to act promptly and explain clearly why the judgment should not stand.
This matters because an unpaid CCJ stays on the public register, can trigger enforcement action, and — if ignored for long enough — can even feed into a winding-up petition. Understanding how to challenge a CCJ against a limited company gives directors a genuine route back to control, rather than simply hoping the problem disappears.
Below is a plain-English guide to when a set-aside is possible, the two main legal grounds, how to apply, and what happens next.
When a CCJ can be set aside
A CCJ is usually entered as a "default judgment" — the court did not decide the case on its merits, it simply recorded that no defence was filed in time, or that the debt was admitted by non-response. That is exactly why default judgments can often be reopened: the company never actually had its say.
The court will only set aside a judgment where there is a proper legal basis. There are two main grounds a director can rely on, covered below, and the application must generally be made without unreasonable delay once you become aware of the judgment.
Ground one: the judgment was entered in error
Under the Civil Procedure Rules, a court must set aside a default judgment if it was wrongly entered — for example:
- The claim form or particulars were never properly served on the company (wrong registered office, outdated address, or no service at all).
- The judgment was entered before the deadline for filing a defence or acknowledgment had actually expired.
- The debt had already been paid in full, or settled, before judgment was entered.
This is the strongest ground, because it does not depend on the merits of the underlying dispute — it is about whether the judgment should have been entered at all.
Ground two: a real prospect of defending the claim
Even where the judgment was correctly entered, the court has discretion to set it aside if the company can show a real prospect of successfully defending the claim, or some other compelling reason to allow the case to be heard properly.
A "real prospect" means more than simply disagreeing with the debt — the company needs to show, in reasonable detail, why the claim is wrong or disputed. Common examples include:
- The goods or services were never delivered, or were defective.
- The amount claimed is incorrect or already partly paid.
- There is a genuine counterclaim or set-off against the claimant.
Simply wanting more time to pay is not a defence, and will not usually support a set-aside on this ground.
How to apply and the fees involved
To ask the court to set aside a CCJ against your company, you generally need to:
- Complete an application notice (form N244) explaining which ground you are relying on and why.
- Provide a witness statement setting out the facts, including any evidence of a defence or of an error in how judgment was obtained.
- Pay the relevant court fee for the application.
- File the application at the court that issued the judgment and serve a copy on the claimant.
Court fees for applications of this kind change from time to time, so always check the current figure on GOV.UK before submitting. If the application succeeds, the court will usually also set directions for the case, or a deadline to file a defence.
Why speed matters after you learn of the CCJ
Courts expect a set-aside application to be made promptly once a director becomes aware of the judgment — delay is one of the most common reasons applications are refused, even where the underlying grounds look reasonable.
Beyond the court's own timetable, speed matters for practical reasons too:
- An unpaid CCJ registered against the company can affect its credit rating and how suppliers or lenders view it.
- Enforcement action, such as bailiffs or a charging order, can follow if the judgment is left unpaid and unchallenged.
- An unresolved CCJ can, over time, form part of the evidence used to support a winding-up petition.
If your company is already juggling wider payment pressure alongside the CCJ, it may help to read our guide on Business Cashflow Crisis: How to Take Control, which looks at managing creditor pressure more broadly.
What happens if the set-aside succeeds or fails
If the application succeeds, the judgment is cancelled and the record is updated. The claim itself does not disappear — it usually returns to being an active, disputed case, and the company will normally need to file a defence within a set deadline.
If the application fails, the CCJ stands. At that point the practical options are usually to pay the judgment debt, agree a payment arrangement with the creditor, or take advice on the company's wider financial position. For background on what an unpaid CCJ can lead to, see CCJ Against a Limited Company: What Happens and Unpaid CCJ: Can It Wind Up My Company?.
Frequently asked questions
How long do I have to apply to set aside a CCJ against my company?
There is no single fixed deadline, but the court expects the application to be made promptly once the director becomes aware of the judgment. Waiting weeks or months without good reason can seriously weaken the application.
What does it cost to apply to set aside a CCJ?
There is a court fee to file the N244 application notice, alongside any legal costs if a solicitor prepares the application. The exact court fee changes periodically, so it should always be checked on GOV.UK before applying.
Can a CCJ be set aside if my company never received the claim?
Yes. If the claim form was sent to the wrong address, or never properly served, this is one of the strongest grounds for a mandatory set-aside, since the company was never given a fair chance to respond.
What is a "without notice" CCJ and can it be challenged?
A default judgment entered because no defence was filed is sometimes described this way, since it is granted without a hearing. It can still be challenged through the standard set-aside process on either of the two main grounds above.
Will setting aside a CCJ remove it from the register permanently?
If the set-aside is granted, the judgment is cancelled and the entry is updated accordingly. If the underlying claim later results in a fresh judgment, that would create a new, separate entry.
This article is general information, not legal or insolvency advice, and every company's circumstances are different. If you would like to talk through your options, Harbourfirst can introduce you to a regulated insolvency practitioner or solicitor — start an enquiry.