Being Sued

5. Losing

5.1 You may be able to appeal against a wrong decision.

• It is more difficult in small claims. You must show that the hearing was improperly conducted or that the decision contained an error in law.

5.2 Judgment in debt claims is noted against your business address on the Register of County Court Judgments.

• Your credit rating will be affected unless you pay in full within a month and pay the court to delete the entry.
• Otherwise, the entry stays on for six years. Payments are noted against the entry. Once you have paid in full, you can pay the court a fee to delete the entry.

5.3 The directors and officers of the company are responsible for complying with the judgment.

• Non-compliance with a judgment is grounds for winding up the company, if the claim exceeds £750.