County court
The county court is a civil court and most large towns have a
local court.
A large number of debt actions are dealt with by this court, and
all matters under the Consumer Credit Act 1974 (which covers much
of the unsecured credit discussed above) must be heard by the county
court.
If a creditor does not accept your offer of payment (or you have
not made one) they are entitled to issue a claim form (formerly
known as a 'summons') via the county court.
This will outline the sum they are claiming from you, the reasons
for their claim, and it will also add their court costs. The papers
will also include an 'acknowledgement of service', an 'admission
form' and a form on which you may enter any defence or counterclaim
you may wish to make against the creditor.
If you wish to enter a defence or counterclaim, seek advice.
If you admit the debt, you must return the 'admission form', which
is in essence a financial statement form, on which you may make
an offer of repayment.
You have 14 days to return this form or judgment may be entered
and you may incur extra costs making another application to the
Court.
If you return the acknowledgement of service form this allows
28 days, but only to send in a defence or counterclaim, or to dispute
the court's jurisdiction.
The admission form is sent back to the creditor (not to the court)
and the court will make a judgment and set a rate of payment if
an agreement cannot be reached.
Most debt matters of this sort are dealt with on paper by court
staff and NOT at a court hearing.
You will not have a criminal record from being taken to the county
court.
County Court Judgments
Once a judgment has been made, a copy will
be sent to you showing the details of the claim, the costs and
the total sum owing.
It will also state the rate at which you must repay the money.
If you are unable to pay at this rate, you may request a reconsideration
of the order if there has been no hearing and you apply (by letter
or court form N244) within 14 days. There is NO cost for this.
Otherwise, you can apply to the court on form N245 to request
that the payment installment be reduced.
A fee (£30) will be payable for this, unless you are on
income support/income-based jobseeker's allowance/guarantee credit
part of pension credit (from 6 October 2003), tax credits*, or
the court cancels (remits) the fee because paying it would cause
you financial hardship.
* You must have a gross annual income of £14,213 or less
and receive both working tax credit AND child tax credit, or working
tax credit with a 'disability element' or a 'severe disability
element'. Your tax credit award notice will contain this information.
For more details on how to reply to court proceedings, see the
court service leaflets available from your local county court.
Enforcement Of County Court Judgments
If you fail to pay as ordered the creditor might seek to enforce
payment by one of various methods.
Distress/Distraint/Warrant of Execution - county court bailiffs
(See below).
Attachment of Earnings - money taken direct from wages
Third Party Debt Orders (previously known as Garnishee) - (eg.
seizure of bank accounts)
Charging Order - secures a sum owed against an owner-occupied
property and thus turns a non-priority debt in to a priority debt.
Bankruptcy - see high court
The creditor may also request you to attend court to give evidence
on oath about your income, expenditure and assets. This is called
an order to obtain information from judgment debtors (or information
order). It was previously known as oral examination.
You are allowed a chance to respond to each of these actions and
to ask the court not to impose the enforcement measures.
If you fail to respond to the court papers, further action may
be taken against you. In certain cases, failure to respond to court
documents may result in you being held in contempt of court, for
which you can be imprisoned, although this is rare.
Never ignore the courts, always respond to court papers and seek
advice if you are worried.
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