CCJ ADVICE.COM

If you have received a letter saying someone is making a County Court Claim against you DON'T PANIC!!!

The worst thing you can do is ignore it, as it will not go away, and if the Court decides you have a debt to pay you will need to take steps to:

1) Pay it in Full

2) Pay it in Instalments

3) Have it Set Aside


Why is a Claim Being Made Against You ?

A creditor (someone you owe money to) will take out a County Court Claim for any debt they say is owed to them. A hearing or judgement can be avoided if the outstanding debt is paid within 14 days. Otherwise there will be a simple private court hearing to decide if the money is owed and how it will be repaid.

You may attend the hearing, although this is not compulsorary, or just send any information asked for by the court by post.

REMEMBER DO NOT IGNORE THE CLAIM, OR NEGLECT TO SEND IN THE INFORMATION

COUNTY COURT CLAIM FORM

COUNTY COURT JUDGEMENTS (CCJs)

PAYING THE CLAIMANT

HELP!!! I CAN'T PAY

DOES IT EFFECT MY CREDIT SCORE?

THE JUDGEMENT IS INCORRECT

DEBT PROBLEMS? CONTACT US FOR A FREE CONSULTATION


Important. This site only gives advice about county court judgements and the owners of this site recommend seeking proper legal representation for any matters that may result in court action.

County Court Claim Form

If you have been sent a CLAIM FORM act as soon as possible. You have 14 days from receiving the claim to respond. Ignoring it or acting too slowly will more than likely result in a judgement against you and your credit rating being adversly affected.
The CLAIM FORM states how much the creditor is claiming, and the details of the claim. (Note These details can be sent separately up to a fortnight later) This form enables you to explain your side to the court.

RESPONDING TO A CLAIM IS FREE. THERE MAY BE A FEE FOR A COUNTERCLAIM.
IF YOU NEED HELP FILLING IN FORMS STAFF AT YOUR LOCAL COUNTY COURT WILL BE ABLE TO HELP. (LOOK IN THE YELLOW PAGES UNDER COURTS)

What Happens Next

Do not Ignore the Claim

By ignoring the claim, or missing the deadline, a judgement will be made against you, without your side being heard. This is a judgement by default. This will more than likely result in an immediate demand for the payment of the debt in full, plus costs. Your credit rating will also be affected.

Paying the Claim in Full:

a) Include court fees, costs and interest (if required) in the payment.

b) DO NOT SEND THE PAYMENT TO THE COURT. Send it to the claimant at the address shown on the claim form.

c) The claimant must receive payment within 14 days. (Note: Allow 2-3 days if posting. Do not send cash. Always ask for a receipt)

If you pay with 14 days, it's finished. There is no need to contact the court or fill in the forms.

I Need Time to Pay:

If you can't pay all the claim at once, you will need to pay in instalments.

a) Fill in the ADMISSION FORM N9A ( Make a copy).

b) Specify on the form you want to pay in instalments.

c) Specify the instalment amount. ( Make sure it is an amount you can afford).

d) Send the form to the claimant within fourteen days. Allow 2-3 days for posting.

They Are Claiming Too Much:

If you owe the claimant money but you think the claim is too much:

a) Return ADMISSION FORMS N9A and DEFENCE FORM N9B to the issuing court.

b) State on the forms the amount you think you owe and why the claimant is wrong.

c) Remember you only have 14 days to respond. Allow 2-3 days for posting.

I Don't Owe This Money:

If you think the claim is unjustified you can defend against the claim:
a) Return DEFENCE FORM N9B completed. (Make a copy)

b) Answer the allegations made.

c) Remember you only have fourteen days to respond. Allow 2-3 days for posting.

But They Owe Me Money:

Make a counterclaim by filling in the counterclaim section of the DEFENCE FORM. There may be a fee involved.

Where Can I Seek Advice:

Staff at your local County Court can help with queries and to complete response forms.
For general free advice you can contact the Community Legal Service on 0845 345 345 (9.00 am to 5.00pm, Monday to Friday). They can tell you if you can qualify for legal aid as well.
You can also obtain advice from your local Citizens Advice Bureau (CAB)

The County Court Judgement (CCJ)

If your case has gone to court, and it is proved you owe the money claimed, the court will issue an order saying you must repay the debt. This order is called the CCJ and will be for the amount agreed by you and the creditor or, if there is no agreement an amount set by the court.
If you have judgements from more than one creditor , the court can combine your debts and make an administration order, which means you must make a single payment every month to be shared amongst your creditors.

Who do I Pay?

You must the creditor or a representative who will accept payments on there behalf. Usually a debt collection agency or a solicitor.

Paying the Claimant

I Can't Pay!!!

If you don't pay the creditor can ask the court to make you pay and this will entail more costs. If you genuinely can't pay, even in instalments, you can ask to court to review the judgement and have:
a) the instalments changed to an amount you can afford.
or
b) Suspend the order until you can afford to pay.

Help!!! I Can't Pay

The CCJ Record

If you pay the amount within one month the judgement will not be recorded. Otherwise your CCJ will be recorded on the Register of County Court Judgements for six years.
Banks, building societies, credit card companies and other lenders check this register before deciding to lend you money.

How Does it Effect My Credit Rating?


I Don't Agree With the CCJ

If you don't agree with the judgement you can ask the court to set it aside and not to immediately apply the CCJ. You may have to pay a fee and must have a genuine reason to do this. If you don't have a genuine reason this could viewed by the court as wasting its' time or even perjury. These are very serious offences and can incur fines or even prison sentences.
A set aside will mean the claim is heard again, things go back to the beginning and you will have another chance to reply to the claim form. The CCJ is removed from the Register until a new judgement is made.

Applying to have a judgement set aside can be a complicated matter and considering the implications of a false claim you should seek good and sound legal advice before doing this.

I Didn't Receive a Claim Form

If the court didn't recieve your claim form the claimant would have asked for a judgement by default. You will be sent a judgement with the heading 'in default'.
If you have been sent a judgement 'in default', but did not get a claim form, you can ask for the judgement to be set aside, asking the judgement to be cancelled. However,you can only do this if you think you do not owe the money.
If uncertain seek good and sound legal advice before proceeding.

You Cannot Ignore The Judgement

If you have a CCJ you cannot ignore it, it will not go away. You must do something about it, even if you cannot afford the amount you have been ordered to pay.
If you do not pay anything, or do not keep up payments the claimant will ask the court to take further steps to enforce the judgement. This could mean further court fees.
Your local county court can give you a copy of the leaflet 'I cannot pay my judgement- what do I do?'

Paying the Claimant

Who do I Pay?

You pay the claimant not the court. The claimant may have a representative such as a collection agency or a solicitor so you pay the debt amount to them. The name and address for payment is clearly shown on the judgement form.

When paying the debt always use a method that will give you proof of payment. You can send a cheque or postal order. Do not send cash.

Send your name, address, claim number and claimants reference number (on the CCJ) and keep a copy of any letters you send.

Keep a record of any payments made. Include date, the amount payed and record the amount owed after every payment. Also safely file your proof of payment.

You must pay by the date or dates on the judgement. Allow at least four working days. If the payment is late or you are behind the claimant can ask the court to take steps to make you pay the debt, even if you are only one day behind.

Help!!! I Can't Pay

Even if you cannot afford to pay the judgement amount you must do something about it.

The Full Amount

If you have been ordered to pay the full amount of the debt in one go, 'in full' ,or by instalments you can't afford you can ask the court to vary the order and reduce the instalments. This is called a variation order and you must use Form N245 to ask for the amount to be varied.
Form N245 can be obtained free from any county court office. There will be a fee to apply for a variation order, which is £35.00( date 13/02/06). In some circumstances the fee can be waived in full or part e.g if you receive social security or are on a very low income.

You must fill in all the details about your income and spending, and then make the court an offer of payment based on your disposable income. ( Your income minus your expenditure.) Write in an amount you can afford to pay, if you offer too much and fall behind on payments the court maybe asked to take steps to enforce the judgement.

Send the form to the court, (keep a copy), and the court will send the form to the claimant, who will decide whetther to accept your offer of payment.

If the claimant accepts your offer the court will make an order for the instalments to be paid in the amount you offered.

If the claimant doesn't accept the offer the court will look at the information on Form N245 and decide how much you should pay. You will then be told how and when to pay.

If you still think you will not be able to meet the payments you can ask the court to reconsider the order. You must write within sixteen days of the postmark of the variation order. Explain the reasons why you cannot pay the amount ordered by the court.

The court will arrange a private hearing for you and the claimant before a district judge. This will be heard in a court local to you. This hearing should be attended.

The court will then make an order for instalments that you can afford to pay.

If in the future your circumstances change, your income is reduced or your spending increased, you can use this proceedure to apply for a new variation order.

I Have No Income

If you have no income you can request the court's permission to pay nothing for the time being. This is called a 'stay of judgement or execution' . Ask for Form 244, which is free, from your local county court office. Fill this in, giving your reasons and send it to the court. (Keep a copy). There will be a fee for this. The court will arrange a private hearing for you and the claimant to discuss the matter before a district judge.

If You Do Not Pay

If you do not pay anything once the judgement has been received, or fall behind with your payments, the claimant can ask the court to enforce the judgement. The claimant is charged for this and the cost will be passed on to you.
By doing nothing you will more than likely have to pay more later.
The claimant can try to obtain the money owed in several ways. Either by a warrant of execution or an attachment of earnings order.

Warrant of Execution

A warrant of execution allows a county court bailiff to visit your home or business to collect the money owed or to determine whether you have goods to the value of the debt owed.
If you cannot pay the bailiff will assess the value of your belongings to determine whether they can be sold at auction.

The claimant will usually send a letter saying you must pay the amount on the warrant to the court within seven days. If you pay, the bailiffs will not visit you.

If you can pay the warrant within two to three weeks the bailiff may not take your belongings.
If you genuinely need more time to pay you must fill in Form N245, available from your local county court, and ask for the warrant to be suspended and for an instalment order to be put into place. This procedure is the same as for a variation order. (see above)

Attachment of Earnings Order (AEO)

An AEO is sent to your employer. It will tell your employer to deduct money from your earnings and send it to the court. The claimant is then paid.
If the claimant asks for an AEO, you must,

a) pay the full amount immediately
or
b) fill in a statement of means form detailing information about your employment, income and spending.

Inform the court if you are:
Unemployed

self-empoyed

in the armed forces

a merchant seaman

An AEO cannot be made against you if you are one of the above, but you must provide proof.
You must fill in the statement of means and send it to the court immediately. If you do not, the court can send you to prison and may contact your employer to discover your earnings.
A court officer will determine if an AEO can be made against you and how much you can afford to pay. The officer will consider living expenses and regular bill payments, this is your protected earnings rate. If you earn more than this rate the court will make an AEO.
The court will then send the order to you and your employer giving the details. Your employer is allowed to deduct £1 each time they take money from your wages to cover expenses.
If you do not want the court to send an AEO to your employer you can use the statement of means to ask the court to suspend the AEO. You must say you want the court to suspend the order and if they agree the court will tell you start making payments direct to the claimant. If you do not keep up these payments the court will send the order to your employer.
If you already have an AEO you can ask the court to consolidate the orders. This means your employer will make only deduct one payment from your wages to cover all the orders. You will only have to pay £1 to cover your employers expenses. The court will charge a fee to look after the consolidated order for you. This will be added to the money you owe.

Other Types of Enforcement

The claimant could also ask for a third party debt order or a charging order. Both of these will involve a hearing.

How Does This Effect My Credit Rating?

Unless you pay the judgement amount in full within one month the CCJ will be recorded on the Register of County Court Judgements for six years. Banks, building societies and other lenders consult the register before deciding whether to lend you money. The booklet 'No Credit' explains what to do if you are refused credit. Obtain this from The Office of Fair Trading, telephone 0870 606 0321.

Credit Repair

Some companies charge for repair services to remove your CCJ off the Register. Remember this can only happen if:

a) You have paid the the amount in full within one month

b) The judgement has been set aside.

Get independent advice before using these companies.

You can have incorrect information removed from your credit file for a small fee. (£2. Date 13/02/06). Contact companies such as Equifax and Experion.

Removing Your Name Off the Register

If you pay the full amount of the debt within one month you can ask the court to remove your name from the Register. You must provide proof that you have paid the debt and will have to pay a small fee to the court. The court will explain what proof is required. Once the court has proof the debt is payed it will cancel the entry on the Register and provide a certificate of proof.


Paying in Full After One Month

If can't pay the debt in full before one month, you can ask the court to record that the debt has been satisfied after the final payment has been made. There is a fee for this and the court will issue a certificate of satisfaction. This will tell any person or lender making a credit search that the debt has been paid in full.

Even when the debt has been satisfied your name will still be on the Register for six years.

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