The information on this post is for residents of England and Wales only.
If you can’t negotiate arrangements with your creditors to repay your debt, they may take necessary court action against you. Most of the time creditors take this as their last resort.
When your creditor considers taking your debt to the court, a claim will be presented to the County Court. For debts such as store cards, overdrafts, credit cards, personal loans, or any other types of unsecured debts, creditors can consider legal matters when your account has defaulted.
However, your creditor needs to send you a letter of claim via post which contains details of your debt. This has to be provided prior to submitting any claims to the County Court.
The claim from creditors that you’ll get from the post includes a reply form that you need to compete within the 30 days period. If you failed to respond within the given timeframe, your creditor can take matters to court.
Once this happens, you’ll get court forms via post which contains all the information regarding your debt and the preceding circumstances. Read our guide about Court claims and processes for further details and check our court forms guide.
A County Court judgment or CCJ will be issued by the court informing you of the amount that you need to pay.
If you don’t return to these court forms on time, the court won’t consider your circumstances into account and you may get a judgment to pay for an amount that your budget can’t afford.
Can’t afford to pay a county court judgment or CCJ?
If you are scarce and empty-handed, meaning your income can barely suffice your essential living costs, you can resort to a TTP (token offer payment) of £1.
Moreover, the court may decide not to imposed or set installments if determined you don’t have any money left once you pay for all your priority bills and debts. Though you won’t be making any payments, it enables your creditor to directly reinforce the judgment as ‘judgment forthwith’ t0 take further court action to recover the debt. This includes the attachment of earnings order or bailiffs.
If it’s hard for you to cope up with the obligations stipulated in your CCJ or you ‘re not sure about what to do when you receive court forms, we can assist you. Should you wish to speak via phone, call us on 0800 193 1024 or check our free debt advice.