The County court judgment is a court order that is registered if an individual fails to repay the money that one owes. Sometimes, the County Court Judgements are also known as County Court Summons. It is one of the best ways through which the creditors can be a part of the payment collection process.
If an individual receives any notice from the County Court, he/she has to respond to that within two weeks. And if the individual fails to respond in that given time period, the court will take further action against that particular person. As a result, the person has to pay a debt at a higher rate and might even fail to afford that.
What One Should Do If He Gets the County Claim Letter?
Before the creditor takes action against someone, they send a letter of claim to that person. In that letter, the details of the debt are stated. Within 30 days, the clients have to reply to that claim letter.
And if that person doesn’t respond, the creditor will take the help of the court. The individuals have to do the below-mentioned things once they receive the letter of claim.
- They have to respond within a given time frame.
- If the person is unable to pay the debt, he has to fill up the enclosed financial statement regarding payment
- He can take debt advice from the creditors. The person can even seek help from the creditors requesting to provide more information about the debt.
Sometimes, the creditors can make a repayment arrangement if he feels so. And in such cases, court actions are not involved. In the claim letter or notice, the process to respond and what actions will be taken against that persons are mentioned.
In that letter, the Financial Conduct Authority’s default information sheet is also attached.
How to Respond to the Claim Letter?
If you receive the claim letter, first and foremost, you should take advice from the Creditors. This will help you to deal with claims properly. And will also help you to make further decisions regarding the debt matters.
In certain cases, the court gives the order to pay back the debt when it is impossible for the person to do so. There is a wide range of free charities and debt advice agencies or services who can help you to negotiate with the creditors.
Deadlines of The Claim Letter
When one receives the claim letter, he has to reply within 14 days. The individual has to fill up the Income and Expenditure Form.
In that form, you have to give the details about your income and expenditure. This form will be submitted in the court as proof of the amount of money that one owns.
- At the time of the judgment, anyone who disagrees with the amount of money that is mentioned in the form, he will get punishment.
- The individual has to fill up a form which includes the court details of the financial circumstances. And depending on that, one has to make an offer of payment.
- If you need more than 14 days to defend the money that you own, you have to state that in the court.
About Getting Judgments
The Creditor will claim the debt-money after two weeks since the judge announces his judgments. The judgments can be segmented into 2 parts:
- The Judge can share his judgments through installments, where the person has to pay the debt off over a certain period of time.
- The court can announce the judgments instantly when the entire amount that one owes is due.
In general, you will get the judgments by installments if you agree to pay the debt within a month. And the monthly repayment rate will be given by the court only after going through the information that is mentioned in the form.
The users can claim less amount to repay if the money is more than they can afford. The same condition implies in case the income is minimal. This process is mainly known as redetermination.
What if One Fails to Keep Up the Terms of CCJ?
The creditors can seek the help of the court to enforce the debt if one refuses to keep up with the terms of the County Court Judgements. There are various ways through which the creditors can ask the court to enforce the debt which includes, Bailiff action, Charging order and Attachment of Earnings Order.
A creditor can take the help of the bailiffs to collect the debt money. And if the court grants them permission, it will further lead to the Warrant of Execution. For this reason, the bailiffs get permission to break into the client’s home for purposes like collecting debts. The bailiffs can take the goods that one has to repay the debt.
The individuals can seek help from the court in order to suspend the warrant. And as a result, they will pay back the money as early as possible within their affordable rate. You can even take help from the debt advisor in such cases.
Attachment of Earnings Order
The attachment of Earnings order mainly deals with one’s owed money which can be further deducted by the employer from his income.
The creditor can ask a charging order based on one’s owned property in order to secure it. And this becomes valid at the time of paying back the debt. One can even lose the owned property for the implementation of the charging order in it. And the owned property can be one’s house or land.
Regarding the Admission Form
In the admission form, one has to provide the required information in order to pay the debt. And at that time, one must remain conscious about what information they are sharing. Because at the time of the judgment false information can lead to severe problems.
- In the form, you have to give the name of the court.
- Then, came the name of the client.
- Next, you have to state the name of the Creditor who has taken action against you. Their account number and reference number is also required.
- The defendants also provide a claim number which is required as evidence.
How a CCJ can Affect One’s Credit Record
One needs to pay off the debt within the requisite time period. Otherwise, it will be counted under the credit record which includes the Register of Judgements, Orders, and Fines. This credit record will remain for more than 6 years.
And this might become an obstacle at the time of taking any mortgage, credit card or even at the time of taking a loan from any bank in the future. This is the sole reason why one should not ignore the County Court judgment.
How Can you not Get a CCJ?
Following certain ways, one can avoid getting County Court Judgments, such as:
- If you are facing difficulty at the time of payments, you should immediately take the help of a fee debt adviser.
- The debt advisor will help you to get an offer to the credits. They will explain the options that are available for you.
- And by doing this, you will be able to come to a conclusion at the time of payment. Hence, you get a chance to avoid court action.
- You have to repay all the loans within time. And this also includes paying off the debts. This simply provides a better impression of the lender.
- If you pay off the debt using the savings, you have to check that you have enough cash in your hand. This ensures that you can use the money in case of emergencies
County Court Action
The County Court action is all about the County Court and credit debts. If you fail to make a payment to the creditor and can’t reach an agreement to pay back the debt, then the creditors can file a case against you.
And not only the creditors will take the help of the court to get back that money, but the non-creditors can also use the County Court to come to a judgment.
Here is a list of the case where the non-creditors can take the help of the County Court:
- Regarding the credit cards, they can come up to the County Court.
- Based on the issues associated with the store cards and charge cards the non-creditors can take the help of the CCJ.
- The most common issues are associated with the catalogs and unsecured loans that become an obstacle for the non-creditors.
- Doorstep-collection loans fall under non-priority debts.
Who Final Decision is Taken by?
The final decision that one has to pay the debts is taken by the County Court. And even if the Creditor claims for a higher amount of money, the individual has to give the money that the Court decides.
The Action that Creditors Can Take
If the creditor has applied the CCJ against you on or after 1st October 2012, they can secure the property that one owns. This can happen even if the client misses the payment dates after creditors impose the CCJ.