A judgment against a limited company is a debt of that company, recorded against it rather than against you personally, and should not appear on your own credit file unless something else connects you to it, such as a personal guarantee. A judgment relating to a sole trader business is different, because a sole trader and their business are the same person in law, so the CCJ is personal.
This page looks at how business structure changes what a CCJ means for you personally, and what a lender or adviser will want to understand. For a personal CCJ generally, see remortgaging with a CCJ. If your income is from self-employment, see self-employed with bad credit.
On this page
This page covers
- Credit issue
- County court judgments (CCJs)Usually stays on your credit file for 6 years from the judgment date.
- Employment
- Company directorSome lenders look at salary and dividends, others at your share of company profit.
In short
- A CCJ against a limited company is generally a debt of the company, not of its directors personally.
- A personal guarantee can make a director personally liable for a company debt, including any resulting CCJ.
- A sole trader and their business are the same legal person, so a business CCJ for a sole trader is a personal one.
- Directors and sole traders may also need to explain how their income is affected if the business itself has struggled.
Is a CCJ against your company the same as one against you?
A limited company is a separate legal entity from the people who own or run it. A CCJ against the company is recorded against the company, usually visible on a business credit check rather than your personal credit file, and it is the company, not you personally, that owes the debt.
| Business structure | Who the CCJ is against | Effect on your personal credit file |
|---|---|---|
| Limited company, no personal guarantee | The company | Should not appear on your personal file |
| Limited company, with a personal guarantee | The company, and you personally if the guarantee is called on | Can appear on your personal file if you become liable |
| Sole trader | You personally, since you and the business are the same in law | Appears on your personal file in the normal way |
| Partnership | Usually the partners personally, depending on the type of partnership | May appear on the personal files of the partners involved |
General position only. If you are unsure how a specific judgment has been recorded, check with the creditor or a solicitor.
When does a personal guarantee change things?
Lenders and some suppliers commonly ask a director to give a personal guarantee before extending credit to a small or newer company. This means that if the company cannot pay, the creditor can pursue the director personally instead, or as well. If a company debt with a personal guarantee ends up as a CCJ and the guarantee is called on, that judgment can end up against you personally, showing on your own credit file.
If you have given personal guarantees for business borrowing, it is worth checking exactly what they cover and whether any are currently at risk, since this can affect your personal position even while the company itself continues trading normally.
Sole traders: why a business CCJ is a personal one
A sole trader is not a separate legal entity from the person running the business. There is no company standing between you and the debt, so a CCJ relating to your sole trader business is, in law, a CCJ against you. It will show on your personal credit file in the same way as any other judgment, and the general position on remortgaging with a CCJ applies.
In an ordinary partnership, the partners are generally personally liable for partnership debts, so a CCJ relating to the partnership can affect the partners individually. A limited liability partnership works more like a company. Check which type applies to you.
What a lender or adviser will want to understand
Beyond the CCJ itself, a lender assessing a director or sole trader will usually want a clear picture of the business, especially if the judgment suggests it has had a difficult period.
- Whether the CCJ is against the company, a personal guarantee, or you as a sole trader
- The current trading position of the business, not just the CCJ itself
- How your income is evidenced, for example accounts, tax calculations or dividends
- Whether the judgment has been paid, and by whom
Self-employed applicants often face extra paperwork requirements regardless of any CCJ, and our page on self-employed with bad credit covers what lenders commonly ask for.
What lenders may look at with a business-related CCJ
| Factor | Why it matters |
|---|---|
| Legal structure of the business | Whether it is a limited company, sole trader or partnership sets who the CCJ actually belongs to. |
| Personal guarantees given | Whether you have personally guaranteed any business borrowing, and whether a guarantee has been called on. |
| Whether the CCJ shows on your personal file | A company-only judgment should not appear on your own credit report unless you become personally liable. |
| Trading position of the business | Whether the business is trading normally now, particularly if income comes from self-employment. |
| How income is evidenced | Accounts, tax calculations, dividends or retained profits, depending on how you are set up. |
| Personal credit history otherwise | Any personal CCJs, defaults or missed payments separate from the business. |
| Loan to value and affordability | The usual factors alongside anything specific to a business-related judgment. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- Confirmation of whether the CCJ is against the company, a personal guarantee, or you personally
- Details of any personal guarantees given for business borrowing
- Recent business and personal credit checks, if available
- Business accounts or tax calculations to evidence your income
- The judgment date, amount and current status
- Your mortgage balance, deal end date and an estimate of your home’s value
Frequently asked questions
Will a CCJ against my limited company show on my personal credit file?
Usually not, unless you personally guaranteed the debt and the guarantee has been called on, or you are personally liable for some other reason. A company CCJ is generally recorded against the company itself.
I am a sole trader. Is a CCJ for my business the same as a personal one?
Yes. A sole trader and their business are the same legal person, so a CCJ relating to the business is a CCJ against you personally, and it will show on your own credit file in the usual way.
What if my company CCJ affects my mortgage application even though it is not on my personal file?
A lender may still ask about it if you disclose it or if it comes up through other checks, particularly for a director whose income depends on the company. Being upfront about a company CCJ and the current state of the business usually helps an adviser present your case.
Can a personal guarantee be called in after the company debt becomes a CCJ?
Yes, depending on the terms of the guarantee. If it is called on, you can become personally liable for the debt, and a judgment could then be pursued against you individually. Check your guarantee documents if you are unsure.