Hearing a judge rule against you in a small claims case is stressful. Whether you were the one bringing the claim (the claimant) or defending it (the defendant), the immediate “what now?” can feel overwhelming.
The good news? The UK small claims track is designed to be accessible, and losing doesn’t mean your financial life is over. Here is a straightforward guide to exactly what happens next, the costs involved, and how to protect your credit rating.
The Immediate Bill: What You Have to Pay
If you lose, the court will typically order you to pay a specific amount. This isn’t just the “debt” itself; it often includes:
- The Claim Amount: The original sum being disputed (if you are the defendant and the claimant has succeeded with its claim).
- Court Fees: You will likely be ordered to pay back the other side’s court issue fee and trial fee.
- Fixed Costs: Small amounts for things like solicitor’s filing costs (though these are usually very low in small claims and often parties act in small claims without getting solicitors involved).
- Witness Expenses: Reasonable travel costs or loss of earnings (up to a capped daily limit) for the other party and their witnesses. The current cap is a daily limit of £95 per person.
- Capped Expert Report Fees: The current cap is £750 per expert.
See the relevant CPR here. https://www.justice.gov.uk/courts/procedure-rules/civil/rules/part27/pd_part27#7.1
Please note that the court will either order the judgment amounts to be paid “forthwith” (straight away) or within 14 days.
Note: Unlike higher-value court tracks, you are not usually responsible for the other side’s expensive solicitor fees unless you acted “unreasonably” (e.g. lying to the court or ignoring deadlines). Costs on this basis in small claims are fairly infrequent.
The One Month “CCJ” Clock
This is the most critical part of losing a case. If you are the defendant and you lose, a County Court Judgment (CCJ) is created and will be recorded at the Registry Trust. Registry Trust information is considered by lenders when carrying out credit checks.
- The Grace Period: If you pay the full amount within one month of the judgment date, the CCJ is removed from your credit file. It effectively vanishes.
- The 6-Year Mark: If you fail to pay within one month, the CCJ is registered. This stays on your credit report for six years, making it much harder to get a mortgage, a car loan, or even a phone contract.
- Satisfied Status: If you pay after the one month, the CCJ remains on your file, but you can have it marked as “Satisfied,” which looks better to future lenders than an outstanding debt.
The rule relating to the timeframe to make payment, isn’t in the civil procedure rules. It is actually within a piece of legislation here https://www.legislation.gov.uk/uksi/2005/3595/regulation/11
What If You Can’t Pay?
If the judge orders you to pay £2,000 but you only have £200, don’t panic—and don’t ignore it.
You can ask the court to let you pay in instalments. You will need to fill out Form N245 and file it at court. This involves listing your income and outgoings so the court can set a payment rate you can actually afford. This doesn’t stop the CCJ from being recorded but it does stop the other side from sending bailiffs to your door, if an instalment order is put in place and you comply with the instalments.
Can You Appeal the Decision?
You can’t appeal just because you think the judge was “wrong” or “unfair.” You must have legal grounds. This usually means:
- The judge made a serious mistake in law.
- The court procedure was seriously flawed (e.g., you weren’t given the chance to present evidence).
You typically only have 21 days to ask for “permission to appeal.” Be aware that appealing is riskier and can lead to much higher costs if you lose a second time. You should ask the trial Judge at the hearing for permission to appeal after it has handed down its judgment.
Enforcement: What Happens if You Ignore It?
If you don’t pay and don’t set up a payment plan, the winner can “enforce” the debt. This might involve:
- Warrant of Control: Sending court-authorised bailiffs to collect payment or seize goods.
- Attachment of Earnings: Money being taken directly from your wages.
- Charging Order: Placing a “charge” against your house so the debt is paid when you sell or remortgage.
Give yourself the best chance of avoiding a loss, by downloading our Ultimate Guide and the precedents in our store here. https://www.smallclaimscourtgenie.co.uk/store/
