Dealing with your limited company's debts
Responding to a court judgment
You have 14 days to respond to a court judgment.
To respond, you must do one of the following:
- pay the debt
- reach an agreement with the creditor to pay the debt in the future, for example by using a Company Voluntary Arrangement
- put your company into administration
- apply to liquidate (‘wind up’) your company yourself
- challenge the court judgment
If you do not respond to the court judgment within 14 days, your creditors can apply to have your assets seized by a bailiff or sheriff.
Your creditors can apply to wind up your company if your assets are not worth enough to pay your debts.