The County Court is not a criminal court and it is not there to punish anyone. The County Court is there to ensure fairness between borrower and lender. It is not there to serve the interests of the creditors alone.
If a non-priority creditor, for example a credit card company, takes court action against you for the money you owe, you don't usually have to attend court. If you do, the hearing will usually be held in a private room and your name will not appear in the local paper. The staff at the court are used to dealing with people who do not have a solicitor.
Remember, if one of your priority creditors is taking you to court, for instance your landlord or your mortgagor, GET HELP from a Debt Adviser.
What should I do if court action is taken against me?
- You will receive a document called a Claim Form. This states what your creditor claims you owe them.
- If you do owe the money, return the attached form attached (called the Admissions Form) to the creditor, saying how much you can pay. Fill in the Personal Budget form on the back of the claim form and attach a copy of your Personal Budget as well.
- If you do not agree that you owe some or all of the money, get help from a Debt Adviser.
- If the creditor accepts your offer, it will tell the court. You will then get an Order (a "Judgment") from the court telling you to pay at the rate you offered.
- If the creditor refuses your offer, the court decides how much you should pay from the information you provide. If the court tells you to pay more than you have offered, you can ask for a hearing to explain your situation in more detail. You have 14 days to ask for this.
What are the advantages of court action being taken against me for money I owe?
1. The court is likely to let you pay a monthly amount that you can afford. But it can only do this if you tell it about your income, expenses and other debts.
2. Usually, no further interest will be added to the debt once a court order (Judgment) has been made. This applies if the Judgment is for a debt of less than £5,000 or for a regulated consumer credit debt. Some credit agreements have a term saying that they will keep adding interest after court action - get help from a Debt Adviser if this clause is in one of your agreements and the creditor is taking you to court.
3. Provided your total debts are less than £5,000 and a County Court Judgment has been made against you, you can ask the court to take over all your debts. This is called an Administration Order. You can make one affordable payment to the court. The court will then share it out between all your creditors on your behalf. The court can also decide that you should pay off only a part of what you owe.
What are the disadvantages of court action being taken against me for money I owe?
1. Court costs are added to your debt. They are fixed and depend upon the amount of money you owe.
2. You may find it more difficult to get credit because your name will be on the Register of County Court Judgments (external site).
3. If you fail to keep up payments then the creditor may be able to take enforcement action against you.
What action can be taken against me if I don't make the payments as ordered by the court?
Your creditors will be able to try and force you to pay by:
- Sending bailiffs to your home
- Having money deducted from your earnings
- Putting a charge on your home
If you are faced with any such action, get help from a Debt Adviser.
Remember! If you receive a letter or form from the court that you do not understand, either take it to the court straight away and ask for an explanation, or get help from a Debt Adviser.
What if I can't pay the amount on the court order / judgment?
You can apply at any time to reduce the amount you are ordered to pay under a County Court Judgment. This is called varying the order. Do this by completing form N245 (external website / pdf document) application for suspension of a warrant / and or variation of an instalment order available online from the Court Service website. You can also get form N245 from the court.
There is currently a charge made to vary the order. You may be eligible not to pay the charge if you are on a low income. For more information about whether or not you have to pay court fees you can download the following leaflets and forms from the Court Service website (external website / pdf documents).
EX160A Court Fees - Do you have to pay them?
EX160 Application for a fee exemption or remission
How do I work out the payment rate to vary the order?
You need to ensure that the payment rate is fair and equitable. Get help on this by using National Debtline's self help debt pack (external website) or get advice from a Debt Adviser.
Once you have worked out your payment, fill in form N245 and put your offer in Box 11. Send or take the form to the court.
If you have any problems with the form, get help from a Debt Adviser.
Information on other websites
National Debtline
Replying to a County Court claim form
Need more help? Live in Manchester? Send us an email
Information Provider:
Manchester Advice
Date Written:
14 April 2005
Date Reviewed:
10 November 2008
This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions.
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