What Happens If You Lose in Small Claims Court UK

Losing in small claims court in the UK can have financial and legal consequences—even if the claim seems minor. This article explains what happens next, how it might affect your credit, and what options you have after the judgment.

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1. You’ll Likely Have to Pay the Claim

If the judge rules against you, you’ll usually be ordered to pay the full amount the claimant asked for—or a partial amount if only part of the claim was successful. This is called a judgment debt.

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2. You Might Be Ordered to Pay Their Costs

Even in small claims court, you could be required to pay certain costs, including:

• The claimant’s court fees

• Travel or lost earnings for court attendance

• Limited legal expenses (such as fixed solicitor fees)

Costs in small claims cases are usually capped to keep things fair, but they can still add up.

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3. A County Court Judgment (CCJ) Will Be Issued

If you don’t pay within 30 days of the judgment, a County Court Judgment (CCJ) will appear on your credit record and stay there for six years. This can seriously damage your ability to:

• Get a loan or mortgage

• Rent property

• Open bank accounts or access financial products

• Apply for some jobs, especially in finance

 

4. Enforcement Action Can Follow

If you still don’t pay, the claimant can apply for enforcement, which could include:

• Bailiffs visiting your home to collect money or possessions

• Attachment of earnings (money taken directly from your wages)

• Charging orders (a claim on your property or assets)

• Third-party debt orders (freezing your bank account)

 

5. You May Be Able to Appeal—but Only in Limited Cases

Appeals in small claims court are rare and only allowed if:

• The judge made a clear legal mistake

• You have new evidence that could not reasonably have been provided earlier

You must usually request permission to appeal and do so within 21 days of the decision.

 

Summary Table

 

Outcome - Applies If You Lose?

Pay the claim - ✔ Yes

Pay some of the claimant’s costs - ✔ Likely

CCJ issued - ✔ Unless paid in 30 days

Credit score impact - ✔ Yes

Enforcement action possible - ✔ If not paid

Right to appeal - ✔ But limited grounds

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Tip: If you can’t afford to pay in full, you can apply to the court to pay in instalments. It’s better to take action than to ignore the judgment.