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1 Action Plan
1.1 Interview date
2022-02-111.2 Actions Taken In Appointment
Debt/Issue | Action |
---|---|
Draft SFS | completed |
Recovery advice given | Recovery advice given on each of the client's debts |
Client given full advice on available options | completed |
1.3 Client next steps
Debt/Issue | Action | By When |
---|---|---|
Apply for credit reports | Bring credit reports into agency | ASAP |
Bring in bank statements | Bring in last 3 months of bank statements for all accounts in your name | ASAP |
Provide copy of last 3 months UC statements | ASAP |
1.4 Advisor Next Steps
Debt/Issue | Action | By When |
---|---|---|
Put client in BS | Put client in BS | 28 Feb 2022 |
Check client eligibility for a DRO | Once credit reports, bank and UC statements are received |
1.5 Next Steps
By Whom | Debt/Issue | Action | By When |
---|---|---|---|
advisor | as above | as above | as above |
1.6 Preliminaries
1.6.1 Do you require an interpreter or Language Line Services?
No1.6.2 Do you have a Support Worker who attended the appointment? – Yes / No
No1.6.3 Do you have any Accessibility needs
Yes1.6.4 Please give details of needs and adaptations needed
And the client confirmed that the following adaptations are needed:
Client prefers advice by telephone due to agoraphobia, anxiety and depression. Client can take photographs of letters but finds it difficult to leave her home
1.7 Client Identification
1.7.1 Name
Jane Doe1.7.2 Address
The Bearpit
Bristol
BS1
1.7.3 Case number
CL-000000031.7.4 Photo ID Provided?
Yes1.7.5 what ID
The photo ID that the client provided was passport sent by email
This confirmed the client's identity Y
1.8 Client Goal
1.8.1 What is your goal regarding your debts and money management?
Become debt free and/or have a sustainable plan to deal with debts
1.8.2 What does the client want from the advice session?
General advice on debt options2 Exploration of Facts
2.1 Emergency/Urgent Issues
2.1.1 Does the client have any emergency or urgent issues?
Yes2.1.2 Details
Yes = that you have an urgent issue which we advised you about and addressed at the appointment2.1.3 Are Enforcement Agents (Bailiffs) visiting?
No2.1.4 Do you have an eviction date?
Yes2.1.5 Details
The client confirmed that they have an eviction date on: 5th March 20222.1.6 Are you being disconnected from their gas and/or electric?
No2.1.7 Details
The client confirmed that they are due to be disconnected on:2.1.8 Do you have a possession hearing?
No2.1.9 Details
The client confirmed that they have a possession hearing on:2.1.10 Do you have any other court dates?
No2.1.11 Details
The client confirmed that they have a court date on:2.1.12 Are you being threatened with committal?
No2.1.13 Details
The client confirmed that they are being threatened with committal on:2.1.14 Are there any other emergencies?
No2.2 Health
2.2.1 Do you have any of the following health conditions? – tick all that apply.
- Physical Health Issue
- Mental Health Issue
2.2.2 Please give details of health problems and any other relevant information (e.g name of condition)
Agoraphobia, anxiety, depression - client does not work due to ill health and struggles to leave house.
Rheumatoid arthritis - causes significant pain and fatigue for client.
2.2.3 How does their mental health condition affect their ability to manage your money or engage with debt advice?
Client unable to leave the house so struggles to engage with advice and other health/care/government agencies.
Client struggles to engage with banks and financial institutions as cannot manage to go to the bank branch.
Client feels panicky when thinking about financial situation and may struggle to stay consistently engaged with debt advice due to feeling overwhelmed.
2.3 Personal Situation
2.3.1 What is your immigration status?
British Citizen2.4 Housing Status
2.4.1 Who else is living at the property with you? (Relation and age)
Client lives alone
2.4.2 Client’s Housing Status
Social Tenant2.4.3 When did you move into the property?
20052.4.4 Who is your landlord?
As the client is renting their property, they said that their landlord is: Bristol City Council2.4.5 What type of tenancy do you have?
Secure Tenancy2.4.6 Details
They have a Secure Tenancy with their local authority landlord.2.4.7 How many bedrooms do you have?
They have 2 bedrooms.2.4.8 Is your tenancy at risk?
Yes2.4.9 Details
They confirmed that their tenancy is at risk.2.4.10 How much is your total rent?
The client confirmed that their total rent is £105 per week2.4.11 How much Housing Benefit / Local Housing Allowance / UC Housing Costs do you get?
The client confirmed that they receive £90.30 per week for UC Housing Costs.2.4.12 Are you subject to the under-occupation charge (bedroom tax)?
Yes2.4.13 Details
The client confirmed that they have to pay the under-occupation charge (bedroom tax).2.5 Reason for Financial Difficulties
2.5.1 Do you think their current financial and personal situation is stable or unstable?
Stable2.5.2 What are the main reasons for their current financial difficulties? (tick all that apply)
- Sickness
- Low income
- Managing affairs generally
2.5.3 Are there any underlying issues
Client subject to the bedroom tax for 1 additional bedroom in property. Client would find moving extremely difficult due to agoraphobia, anxiety and depression.
2.5.4 Are the difficulties likely to be long term or temporary?
Long Term2.5.5 Why are the difficulties long term?
- Long term illness or health condition
2.5.6 Is their situation likely to get better, get worse or stay the same? – Get better / Get worse / Stay the same
Stay the same2.6 Previous Actions
2.6.1 Are you new or returning to the debt advice service?
new2.6.2 Details
they have not received debt advice before.2.6.3 What actions have you taken so far about their debts?
BCC referred client for advice due to eviction warrant due to be executed on 5 March 2022
2.6.4 Have you had any formal insolvency options (DRO, IVA, bankruptcy etc.) before?
No2.6.5 Details
they have not had a formal insolvency option before.2.7 Income Details
2.7.1 What type of income are you receiving? (Tick all that apply)
- Benefits & Tax credits
2.7.2 Details
The client confirmed that they were working and so they provided the following information:
The client works XXX hours per week.
The client earns £XXX
The client receives £XXX bonus or overtime.
The client has worked for their employer for:
2.7.3 Details
The client confirmed that they were in receipt of benefits and so they provided the following information that:
they are in receipt of: UC, PIP, full CTR
The client confirmed that they are in: LCWRA group
Housing costs less 1 bedroom deduction - APA for rent
25% deduction for MCF
PIP - Daily living standard, mobility enhanced
2.7.4 Do you have a pending claim for any of the following benefits?
- N/a
2.7.5 Any deductions from their benefits?
Yes2.7.6 Details
The client confirmed that they have deductions for benefits for
APA for rent
25% deduction for magistrates court fine
2.7.7 Is the deductions for (tick all that apply)
- Magistrates court fines
2.8 Savings & Assets Details
2.8.1 Does the client have any assets or savings?
2.8.1.1
Equity in home2.8.1.1.1 Equity in home yes/no
No2.8.1.1.2 Equity in home details
n/a
2.8.1.2
Savings2.8.1.2.1 Savings yes/no
No2.8.1.2.2 Savings details
n/a
2.8.1.3
Vehicle2.8.1.3.1 Vehicle yes/no
No2.8.1.3.2 Vehicle details
n/a
2.8.1.4
Pension Fund2.8.1.4.1 Pension Fund yes/no
No2.8.1.4.2 Pension Fund details
n/a
2.8.1.5
Compensation2.8.1.5.1 Compensation yes/no
No2.8.1.5.2 Compensation details
n/a
2.8.1.6
Backdate of Benefits2.8.1.6.1 Backdate of Benefits yes/no
No2.8.1.6.2 Backdate of Benefits details
n/a
2.8.1.7
Redundancy Payment2.8.1.7.1 Redundancy Payment yes/no
No2.8.1.7.2 Redundancy Payment details
n/a
2.8.1.8
Pending insurance/PPI claim2.8.1.8.1 Pending insurance/PPI claim yes/no
No2.8.1.8.2 Pending insurance/PPI claim details
n/a
2.8.1.9
Other Assets2.8.1.9.1 Other Assets yes/no
No2.8.1.9.2 Other Assets details
n/a
3 Income Maximisation
3.1 Financial Capability & Income Maximisation
3.1.1 Tax Code & Benefit Checks
3.1.1.1 Do you need a Tax Code check?
No3.1.1.2 Details
concluded that the client was not suitable for a tax code check because the client has not worked for 20 years3.1.1.3 Benefit check carried out
Yes3.1.1.4 What was the outcome?
Client is receiving their full entitlement
3.1.1.5
The client was advised on Income Maximisation and Financial Capability. Client was provided with our Booklet called Managing Your Money and the relevant sections which were highlighted for their reference in addition to advice being provided:
3.1.2 Is their bank account at risk and you need information about basic bank accounts?
No3.1.3 Details
We considered if the client’s bank account was at risk and whether thy needed information on basic bank accounts and the client’s bank account was not at risk and so no further information was required.3.1.4 Do you have any entitlement to child maintenance that is not being received?
N/A3.1.5 Details
this is not applicable to them as they do not have any children eligible for child maintenance payments.3.1.6 Do you have any entitlement to Marriage Allowance that is not being received?
N/A3.1.7 Details
this is not applicable to them as they are not eligible for Marriage Allowance.3.1.8 Do you have any entitlement to help with Council Tax that is not being received? (tick all that apply)
- No
3.1.9 Details
We advised the client that they may be entitled to a Single Person Discount of 25% reduction in their Council Tax bill. This is because they are the only person over 18 in their home. We advised the client that they will need their council tax number to apply and to contact their local authority as soon as possible.
3.1.10 Details
We advised the client that due to the adaptations at their property because of their health condition, they may be entitled to a reduction in their council Tax of 1 band. As the client lives in the property as their own home, they need to have either an extra bedroom or kitchen for the use of the person with the health condition, a room for a special purpose or extra space for wheelchair use. A council inspector will visit the property to check that the criteria has been met.
3.1.11 Details
We advised the client that due to their mental health condition, they may not be required to pay council tax. This is called Severe Mental Impairment and as such they do not count on a council tax bill and so if they live in a couple then their partner could be entitled to a Single Person Discount of 25% reduction in the Council Tax bill. We advised the client that they will need their council tax number to apply and to contact their local authority as soon as possible.
3.1.12 Details
No further assistance as the client is receiving all of their entitlement.3.1.13 Details
No assistance as the client is not liable for Council Tax.3.1.14 Are you in receipt of Discretionary Housing Payment?
No3.1.15 Details
We considered if the client was eligible for Discretionary Housing Payment and the client confirmed that they are not in receipt of Discretionary Housing Payment.3.1.16 Is an application suitable?
Yes3.1.17 Details
We advised that a claim for Discretionary Housing Payment is an extra payment to help people who claim Housing Benefit or Housing costs as part of Universal Credit and are struggling to pay the rent but usually is not a payment towards any existing arrears. We advised that it was suitable because they were struggling to pay their rent. A DHP may be claimed by completing an application form to their local authority.
3.1.18 PIP
Not Applicable3.1.19 Does the client require advice about non-dependent contributions?
No3.1.20 Details
We concluded that the client did not need advice about non-dependent contributions as the client did not have any non-dependents to make contributions.3.1.21 Does the client require advice about Budgeting and Saving?
Yes3.1.22 Details
concluded that the client does require budgeting and saving advice. We advised the client that Budgeting is important because it helps to see what money is coming in; to see what money is going out; to pay essential bills on time; to work out payments to any debts and plan any future spending.
We advised that the first stage is to work out a personal budget. We completed this during the appointment and provided the client with a copy of a budget sheet.
We advised that if the client cannot afford to pay their existing debts, taking out more credit will often make the situation worse. It might mean missing payments on their ongoing household bills and other debts. It could make it harder to negotiate with their creditors, and can cause problems with some debt options, so we told them to think very carefully before doing this. We said that their personal budget will tell them if they have enough money left over to pay the monthly payments.
We said that it is a good idea to save some money each month if possible. This helps someone to plan ahead. We said that it can be hard to stick to repaying any debts, or essential bills, when an important expense needs paying. This could be that the car needs fixing, or an urgent house repair. We advised that they could spread out these payments, and make budgeting much less stressful, if they regularly put a bit of money aside to pay for expenses such as these.
We continued and said that other costs come up occasionally, such as MOTs, birthdays and Christmas. It is important to save regularly for these things, so the money is there when needed. We advised to set aside a monthly amount in the personal budget for these sorts of costs.
We directed the client to the money advice service website at https://www.moneyadviceservice.org.uk/en/categories/budgeting-and-managing-money for more budgeting and saving tips.
3.1.23 Does the client require advice about their TV Licence?
Yes3.1.24 Details
concluded that the client required advice on this. We advised that paying for a TV licence is a priority. This is because you can be fined in the magistrates' court for not having a licence. This can then lead to bailiffs (also known as enforcement officers) calling, or even to being sent to prison, if the fine is not paid. As well as having a fine to deal with, we advised that they still need a TV licence.
We advised that the client can pay their licence weekly, fortnightly, monthly or every three months. We said that they can use the TV Licensing savings card or make payments at PayPoint outlets in shops. To apply for a TV Licensing savings card, contact 0300 555 0281. We advised that the client can pay by direct debit either every three months or every month from their bank account. See www.tvlicensing.co.uk or call 0300 790 6144. The payment card method allows payments to be made every week or two weeks. This can only be used for colour licences. Contact the cash payment plan helpline on 0300 555 0286 or check the TV licensing website.
3.1.25 Does the client require advice about Switching Energy Supplier?
No3.1.26 Details
concluded that the client does not require any advice on switching their energy suppliers because they are unable to do so.3.1.27 Does the client require advice about Warm Home Discount?
Yes3.1.28 Details
concluded that the client would benefit from advice about the Warm Home Discount. We advised that they could get £140 off their electricity bill for winter. We said that the money isn’t paid to them - it’s an annual one-off discount on their electricity bill, between September and March. We said that they may be able to get the discount on their gas bill instead if their supplier provides them with both gas and electricity. We told them to contact their supplier to find out. We advised that the discount won’t affect their Cold Weather Payment or Winter Fuel Payment.
3.1.29 Does the client require advice about Crisis Fund application
Yes3.1.30 Details
concluded that the client is experiencing a crisis and so would be eligible for assistance from their local authority. We advised that local authorities can give short term grants where someone is experiencing a crisis or emergency. If this is the case you can make an application to their local authority for help and each local authority has their own scheme.
The Crisis Funds are designed to help with a short term grant of monies to the applicant to help with an immediate crisis such as fuel costs, food costs or clothing. The crisis must be a one off such as benefits delays or losing their job and you can only have 1 crisis payment per year (although a second payment can be made in exceptional circumstances).
3.1.31 Does the client require advice about Downsize/Lodger?
Yes - social tenant3.1.32 Details
concluded that the client would benefit from advice about downsizing or taking in a lodger. We advised that if they were to downsize this means that they seek to move to a smaller property. We advised that as they are renting from a social landlord and wish to downsize then please seek Housing Law Advice around their local authority’s scheme. We said that the advantage of downsizing would be a likely reduction in costs as well as lower rent (including possibly removing the “Bedroom Tax”).
3.1.33 Does the client require advice about Best Deals - Phone Calls?
Yes3.1.34 Details
concluded that the client would benefit from advice about best deals on their phone. We advised the client to check their phone contract as if they are not tied into a fixed term then they may be able to make savings if they switch phone companies, for both landline and mobile phone.
We advised that even if the client does not want to change their phone company, there are other ways to cut down on their phone bills. The first is to pay by direct debit. The client could also talk for free using software such as Facetime, Skype, Viber or WhatsApp, sop long as they use wi-fi. We advised the client to check their contract as there may be extras like voicemail or an “unlimited package” that they do not need and are being charged for. We advised the client to ask if their phone company has a social tariff. This may be helpful for people on certain benefits and only use their phone occasionally.
We advised the client to see if they can switch to paperless billing as this could save some money. We advised the client that if they use directory enquiries, redial on the number they have found for them, instead of asking them to transfer the call.
We advised the client that if they have a bill that they cannot afford to pay and they want to keep the phone line, ask their phone company if they can pay by instalments. The phone company may be more likely to agree if the client sets up a monthly payment plan, perhaps by direct debit. They may also agree to let the client have only incoming calls for a short time to help reduce bills. When the arrears have been cleared, the client may then be able to go back to their normal phone package.
3.1.35 Does the client require advice about Best Deals - Broadband?
Yes3.1.36 Details
concluded that the client would benefit from advice about their broadband costs. We advised that there are lots of companies offering broadband so shop around for the best deal. We advised that the client usually also must pay for line rental, and many companies offer digital television packages too. Check to see if they can get a better deal paying for these separately where possible. Make sure any usage cap is suitable to avoid further charges. If their current contract is finishing, do not be afraid to ask for a better deal. Ofcom recommend a number of price comparison websites, see www.ofcom.org.uk.
3.1.37 Does the client require advice about Help with Water Bills?
Yes3.1.38 Details
concluded that the client would benefit from advice about their water bills. We advised that the client may be able to reduce their water bill or get help with water debt. We advised that their water company has social tariffs, schemes to reduce bills and schemes to help with arrears.
We also advised that Water Meters only charge you for the water you actually use and this could make bills cheaper. We advised that the client can ask their water company for advice or use the watermeter calculator on the Consumer Council for Water's website www.ccwater.org.uk. We advised the client that if they can't fit a water meter, then to ask their supplier about an assessed charge.
3.1.39 Does the client require advice about Reducing/Help with Travel Costs?
Not Applicable3.1.40 Does the client require advice about Help with Prescription Costs?
Not Applicable3.1.41 Does the client require advice about Charitable Trust Funds?
Yes3.1.42 Details
concluded that the client would benefit from advice about charitable trusts. We advised that Charitable funds give grants to people in financial need who meet their eligibility criteria, using a sum of money that the grant-giving charity has set aside for this purpose.
They are generally run by charities or organisations (such as energy companies) that have grant giving as part of their aims and objectives. Although some grant-giving charities have only one fund, others run more than one fund that give money for different purposes.
Each charitable fund is very individual in the way that it works and the types of support it gives. Although the financial help offered is usually through grants, many funds also have other services. Charitable funds often give financial help to people in need who qualify for their help in the form of a grant. This may be a sum of money, given as a gift or award, so it doesn't have to be paid back. Grants may involve regular amounts of money to help you with bills and other living expenses. This may be given for a limited time or as ‘on-going’ support. They may also be one-off grants (sometimes called specific gifts) to help pay for an essential item. This is often given as money or white goods and furniture. They can be Educational awards to help with the costs of educational and training courses. They may also be Vouchers or an amount paid in credit to a shop to allow you to obtain specific items you need, such as food or clothing.
If charitable payments are made or due to be made regularly then the payments are disregarded as income and do not reduce benefits. If you get goods instead (payments in kind), then this is ignored as income. We advised the client to go to the Turn2Us Website for more details and search for grants.
3.1.43 Does the client require advice about Foodbank Vouchers?
Yes3.1.44 Details
concluded that the client would need a Foodbank Voucher. We advised that if a client is struggling to eat, then we can provide a Foodbank voucher for their nearest foodbank. The foodbank can provide 3 days’ worth of food per voucher to help in crisis. The details of the nearest Foodbank are on the voucher along with the opening times. We can provide you with 3 vouchers within a rolling 6-month period
3.1.45 Does the client require advice about School Meals?
No3.1.46 Details
concluded that the client does not require advice about free school meals.3.1.47 Does the client require advice about Child Care Costs?
No3.1.48 Details
concluded that the client does not require advice about childcare costs.3.1.49 Does the client require advice about sale of non-essential items?
No3.1.50 Details
concluded that the client does not require advice about sale of non-essential items.3.1.51 Does the client have home contents insurance?
No - not wanted3.1.52 Details
they said that they did not currently have contents insurance but were aware of it. They knew that if they were destroyed through an accident or incident such as a fire or theft then they would be able to claim on this for replacements but have chosen not to make a payment out for this insurance.
4 Debt Exploration and Advice
4.1 Liability
4.1.1 Are you disputing liability for any of the debts?
No4.1.2 Details
are not disputing their liability for any of their debts.4.1.3 Any potential challenge under Debt & Mental Health?
Yes4.1.4 Details
concluded that there could be a challenge under Debt & Mental Health.
We decided this because the client has depression, anxiety and agoraphobia. We advised about this as an option with the other debt solutions.
4.1.5 Any debts statute-barred?
No4.1.6 Details
concluded that there are not debts that could be statute-barred.4.1.7 Is client guarantor or have any debts with a guarantor?
No4.1.8 Details
The client neither a guarantor nor has a guarantor for any of their debts.4.2 Priority Debts
4.3
We advised the client of the difference between priority and non‐priority debts and we explained the recovery procedures that can be used by creditors if they default on payment.
A priority debt is one where the creditor’s ultimate sanction may result in the loss of:
- liberty; or
- home; or
- essential services, for example, gas or electricity; or
- essential goods.
We explained the need for the client to maintain payments towards their priority creditors.
We advised that their other debts are non‐priority debts. The sanctions open to creditors for non‐payment of non‐priority debts are generally less serious than those for priority debts. Most non‐priority creditors can only recover the money owed through County Court proceedings and then enforcing the judgment if you do not pay in accordance with its terms.
We advised them that they should not ignore any letters or other contact from creditors or debt collectors (including bailiffs) acting on their behalf but should contact us as soon as possible.
We also advised them that entering into a payment arrangement with any of their creditors would not guarantee that any ongoing recovery or legal action would be suspended or withdrawn, and that the creditor may continue to add charges and interest.
We asked the client if all of the debts included below were all of their debts and they confirmed that they were, even when they present with one debt only.
4.3.1 Do you have any rent arrears?
No4.3.2 Any disrepair at the property?
No4.3.3 Details
We enquired about any disrepair at the property and the client said that there was disrepair at the property. We therefore advised the client that they would benefit from seeking specialist Housing Law advice and so we referred the client to Shelter on 0300 330 1234.
4.3.4 Details
We enquired about any disrepair at the property and the client said that there was no disrepair at the property.4.3.5 Details
The client confirmed that they had received a Notice Seeking Possession4.3.6 When?
on: 2 September 20214.3.7 Court hearing date received?
No4.3.8 Details
The client said that they have not received a court hearing date4.3.9 Details
We advised the client that as an introductory tenant, it is much easier for the council to evict them than if they were a secure tenant and the council can do so after giving the client four weeks' notice and getting a possession order. Introductory tenancies give new tenants a trial period in a council home. The council does not have to prove a legal reason to a court for the client to be evicted. We explained that common reasons for possession to be sought include causing a nuisance to neighbours, rent arrears and arrears or other charges that may be included in rent such as water or service charges.
We explained that the council can evict the client by the following procedure:
1. Sending the client, a Section 128 written notice giving them 4 weeks’ notice that it intends to go to court to evict them. This notice must say:
o Why the council wants to evict them
o That the client has the right to request a review of the council's decision to evict them
2. Inform the client of their right to ask for a review -
The client has 14 days from the date the section 128 notice is delivered to ask for a review. This is their opportunity to tell the council why the client shouldn't be evicted. The client can either:
• Attend a review hearing, with or without an adviser present
• Set out their reasons in writing, including any relevant evidence
The council must tell the client in writing whether it will let them keep their tenancy or go to court. If it decides to carry on and go to court, it must tell the client the reasons why.
3. Start court proceedings.
• The council can only start court proceedings after the 4-week section 128 notice period has expired.
• The council must apply to the court asking for a possession order.
• The court will then send the client a:
Form telling them the time and date of the court hearing, and
Defence form for the client to complete and return to the court within 14 days.
4. Ask the court for a possession order
• The court will grant an outright possession order giving the client 14 days to leave their accommodation, unless there are exceptional circumstances, or the council did not follow the correct steps.
• The client can ask the court to delay this for up to 6 weeks if having to move out sooner will leave them facing exceptional hardship.
5. Ask bailiffs to evict the client
• If the client does not leave their home, the council can ask the court for a warrant to have them evicted by bailiffs.
• The court will send the client a letter to let them know when the bailiffs are coming.
• The client’s best chance of stopping bailiffs at this stage is to contact the council and try to persuade it that their situation will improve, for example, by agreeing a realistic proposal to pay their rent arrears. There is no guarantee at this stage that the council will agree to allow them to keep their tenancy.
Reference 'Eviction of introductory council tenants', https://england.shelter.org.uk/housing_advice/eviction/eviction_of_introductory_council_tenants)
4.3.10 Details
We advised the client that it is important that them to understand that their full rent needs to be paid to ensure that they keep their home. This is whether the rent is covered by Housing benefit, Universal Credit, Discretionary Housing Payments or payments from wages or any third parties.
We advised that for the arrears, the council will expect that the client makes either an arrangement to repay the arrears at an affordable amount, usually no less than £3.70 per week, or that they engage with another option to deal with their debt, such as an insolvency option or applying for a Discretionary Housing Payment (DHP).
We highlighted that current tenancy arrears are a priority debt as the ultimate sanction is that the client could lose their home if they don't pay them or take no action.
To enforce the arrears, we advised that the council must issue the client with specific statutory notices and follow a 'Pre-Action Protocol. Reference CPAG DAH https://askcpag.org.uk/?id=-217552.
The first step in the possession process is to issue a Notice Seeking Possession (NOSP). This is a statutory letter that:
Sets out the reasons (grounds) they want to evict the client;
Tells the client when the council can start court action
The client usually get at least 4 weeks' notice of court action but the council can apply to court immediately in some cases of nuisance or antisocial behaviour.
We advised that on issuing the NOSP and before issuing court proceedings, the council should follow the pre-action protocol which requires them to:
• Contact the client as soon as reasonably possible to discuss the reason for their arrears, their financial circumstances (including any benefit entitlement) and repayment of their arrears by affordable amounts based on their ability to pay. The council should advise the client to seek debt advice.
• Provide the client with quarterly rent statements that they can understand.
• Take steps to ensure the client’s rights are protected if the council is are aware that the client is under 18 or otherwise vulnerable. We advised the client that if they consider themselves vulnerable, they should ensure that the council know this.
We advised that the council should work with the client to resolve any problems the client is having with any outstanding housing benefit (or Universal Credit) claims. In most cases, the council should not issue possession proceedings while such issues are being resolved. To do so may arguably be 'Unreasonable' in any possession hearing. Reference CPAG DAH https://askcpag.org.uk/?id=-217552.
We advised that after serving a NOSP, the council should continue trying to contact the client to discuss the matter. If the client makes an arrangement with them to pay their ongoing rent and a sum to their arrears, the council should agree to postpone further action. We advised the client that should they fail to make an arrangement, then once the notice period expires, the council can begin court action to repossess their home.
We advised the client that upon receiving a Possession Claim hearing Form N119 they should respond to the claim using the Form N11R. As we are not specialist housing advisers, we advised the client at this stage to contact Shelter on 0300 330 1234.should they need advice on completing the form. We advised that the client should attend the hearing so that they can make their case. Failure to do so may result in a possession order being made.
We advised the client that they should get at least four weeks’ notice of the court hearing date. This hearing will be in a County Court (can also be called a Civil Justice Centre) and is not a criminal hearing. There will be no wigs, gowns and the hearing will be held in private in a judge’s room with just the judge, representatives of the council and anyone the client wants to take with them including for support and/or representation.
Further we advised that at least 10 days before their hearing, the council must provide them with an up to date rent statement, confirm details of the hearing and of the type of order that they are seeking and advising the client to attend.
We advised the client that the types of order that can be granted by the judge at the hearing are:
• An order Dismissing the council's action: For example, if all the arrears have been paid off before the hearing date or if the council has failed to bring the claim correctly.
• Adjournment: This puts off the case for a specified period to give the client time to provide extra information to support their case, or to pay off arrears in full, for example, by sorting out a claim for Housing Benefit.
• Suspended possession order: which means that if the client keeps to the court’s order to pay their full rent plus a set amount towards the arrears each week or month, the council will not be allowed to evict them. If the client fails to comply with the order, the council can then obtain a warrant of possession allowing bailiffs to evict them.
• Outright possession order: This means that at the end of a set period, usually four weeks, the client must vacate their home and give possession of the property back to the council otherwise the council could obtain a warrant of possession allowing bailiffs to evict them.
We advised the client that if the outright possession order has been made and the time to give possession up has expired or if they have not made the payments as required under the suspend ed possession order, the council can apply to the court for a Warrant of Possession. They do not usually need to give you warning of this or need another hearing to do this. This empowers County Court bailiffs to evict the client from the property and change the locks.
We advised that if the client receive a warrant for possession then it is still possible for them to stay in the property, but they must apply to the court for the warrant to be suspended before the date of the eviction. The notice of eviction (Form N54) informs them about this. The client should complete Form N244 and apply to suspend the warrant of possession as early as possible before the eviction date. There is a fee for this of £50 but help towards costs can be applied for using court form EX160 if the client has a low income or receive certain benefits. The court will likely set a new date for a hearing and therefore it is recommended that they attend. We also recommended to the client that they seek specialist housing advice from Shelter on 0300 330 1234.
4.3.11 Details
We advised the client that it is important that them to understand that their full rent needs to be paid to ensure that they keep their home. This is whether the rent is covered by Housing benefit, Universal Credit, Discretionary Housing Payments or payments from wages or any third parties.
We advised that for the arrears, the Housing Association will expect that the client makes either an arrangement to repay the arrears at an affordable amount, usually no less than £3.70 per week, or that they engage with another option to deal with their debt, such as an insolvency option or applying for a Discretionary Housing Payment (DHP).
We highlighted that current tenancy arrears are a priority debt as the ultimate sanction is that the client could lose their home if they don't pay them or take no action.
To enforce the arrears, we advised that the Housing Association must issue the client with specific statutory notices and follow a 'Pre-Action Protocol. Reference CPAG DAH https://askcpag.org.uk/?id=-217552.
The first step in the possession process is to issue a Notice Seeking Possession (NOSP). This is a statutory letter that:
Sets out the reasons (grounds) they want to evict the client;
Tells the client when the Housing Association can start court action
The client usually get at least 4 weeks' notice of court action but the Housing Association can apply to court immediately in some cases of nuisance or antisocial behaviour.
We advised that on issuing the NOSP and before issuing court proceedings, the Housing Association should follow the pre-action protocol which requires them to:
• Contact the client as soon as reasonably possible to discuss the reason for their arrears, their financial circumstances (including any benefit entitlement) and repayment of their arrears by affordable amounts based on their ability to pay. The Housing Association should advise the client to seek debt advice.
• Provide the client with quarterly rent statements that they can understand.
• Take steps to ensure the client’s rights are protected if the Housing Association is are aware that the client is under 18 or otherwise vulnerable. We advised the client that if they consider themselves vulnerable, they should ensure that the Housing Association know this.
We advised that the Housing Association should work with the client to resolve any problems the client is having with any outstanding housing benefit (or Universal Credit) claims. In most cases, the Housing Association should not issue possession proceedings while such issues are being resolved. To do so may arguably be 'Unreasonable' in any possession hearing. Reference CPAG DAH https://askcpag.org.uk/?id=-217552.
We advised that after serving a NOSP, the Housing Association should continue trying to contact the client to discuss the matter. If the client makes an arrangement with them to pay their ongoing rent and a sum to their arrears, the Housing Association should agree to postpone further action. We advised the client that should they fail to make an arrangement, then once the notice period expires, the Housing Association can begin court action to repossess their home.
We advised the client that it is important that the client checks the NOSP for the Grounds that the Housing Association is relying upon to obtain possession. The most common grounds for seeking possession are Grounds 8, 10 and 11. We advised that Grounds 10 and 11 are discretionary which means that the court has a choice to make an order where you can pay the arrears in weekly payments under a suspended order. However, if Ground 8 is included in the NOSP and is relied upon in the possession proceedings, this is a mandatory ground. This means that if there are 8 weeks (or 2 months if rent is paid monthly) arrears at the date of the NOSP and date of the hearing then the court has no choice but to make a possession order. We advised the client to seek specialist housing advice from Shelter on 0300 330 1234 when they receive a NOSP.
We advised the client that upon receiving a Possession Claim hearing Form N119 they should respond to the claim using the Form N11R. As we are not specialist housing advisers, we advised the client at this stage to contact Shelter on 0300 330 1234.should they need advice on completing the form. We advised that the client should attend the hearing so that they can make their case. Failure to do so may result in a possession order being made.
We advised the client that they should get at least four weeks’ notice of the court hearing date. This hearing will be in a County Court (can also be called a Civil Justice Centre) and is not a criminal hearing. There will be no wigs, gowns and the hearing will be held in private in a judge’s room with just the judge, representatives of the council and anyone the client wants to take with them including for support and/or representation.
Further we advised that at least 10 days before their hearing, the Housing Association must provide them with an up to date rent statement, confirm details of the hearing and of the type of order that they are seeking and advising the client to attend.
We advised the client that the types of order that can be granted by the judge at the hearing are:
• An order Dismissing the council's action: For example, if all the arrears have been paid off before the hearing date or if the Housing Association has failed to bring the claim correctly.
• Adjournment: This puts off the case for a specified period to give the client time to provide extra information to support their case, or to pay off arrears in full, for example, by sorting out a claim for Housing Benefit.
• Suspended possession order: which means that if the client keeps to the court’s order to pay their full rent plus a set amount towards the arrears each week or month, the Housing Association will not be allowed to evict them. If the client fails to comply with the order, the Housing Association can then obtain a warrant of possession allowing bailiffs to evict them. This is not available if Ground 8 has been relied upon by the Housing Association.
• Outright possession order: This means that at the end of a set period, usually four weeks, the client must vacate their home and give possession of the property back to the Housing Association otherwise they could obtain a warrant of possession allowing bailiffs to evict the client.
We advised the client that if the outright possession order has been made and the time to give possession up has expired or if they have not made the payments as required under the suspended possession order, the Housing Association can apply to the court for a Warrant of Possession. They do not usually need to give you warning of this or need another hearing to do this. This empowers County Court bailiffs to evict the client from the property and change the locks.
We advised that if the client receive a warrant for possession then it is still possible for them to stay in the property, but they must apply to the court for the warrant to be suspended before the date of the eviction. The notice of eviction (Form N54) informs them about this. The client should complete Form N244 and apply to suspend the warrant of possession as early as possible before the eviction date. There is a fee for this of £50 but help towards costs can be applied for using court form EX160 if the client has a low income or receive certain benefits. The court will likely set a new date for a hearing and therefore it is recommended that they attend. We also recommended to the client that they seek specialist housing advice from Shelter on 0300 330 1234.
4.3.12 Details
We advised the client that it is important that them to understand that their full rent needs to be paid to ensure that they keep their home. This is whether the rent is covered by Housing benefit, Universal Credit, Discretionary Housing Payments or payments from wages or any third parties.
We advised that for the arrears, the Housing Association will expect that the client makes either an arrangement to repay the arrears at an affordable amount, usually no less than £3.70 per week, or that they engage with another option to deal with their debt, such as an insolvency option or applying for a Discretionary Housing Payment (DHP).
We highlighted that current tenancy arrears are a priority debt as the ultimate sanction is that the client could lose their home if they don't pay them or take no action.
To enforce the arrears, we advised that the Housing Association must issue the client with specific statutory notices and follow a 'Pre-Action Protocol. Reference CPAG DAH https://askcpag.org.uk/?id=-217552.
The first step in the possession process is to issue a Notice Seeking Possession (NOSP). This is a statutory letter that:
Sets out the reasons (grounds) they want to evict the client;
Tells the client when the Housing Association can start court action
The client usually get at least 4 weeks' notice of court action but the Housing Association can apply to court immediately in some cases of nuisance or antisocial behaviour.
We advised that on issuing the NOSP and before issuing court proceedings, the Housing Association should follow the pre-action protocol which requires them to:
• Contact the client as soon as reasonably possible to discuss the reason for their arrears, their financial circumstances (including any benefit entitlement) and repayment of their arrears by affordable amounts based on their ability to pay. The Housing Association should advise the client to seek debt advice.
• Provide the client with quarterly rent statements that they can understand.
• Take steps to ensure the client’s rights are protected if the Housing Association is are aware that the client is under 18 or otherwise vulnerable. We advised the client that if they consider themselves vulnerable, they should ensure that the Housing Association know this.
We advised that the Housing Association should work with the client to resolve any problems the client is having with any outstanding housing benefit (or Universal Credit) claims. In most cases, the Housing Association should not issue possession proceedings while such issues are being resolved. To do so may arguably be 'Unreasonable' in any possession hearing. Reference CPAG DAH https://askcpag.org.uk/?id=-217552.
We advised that after serving a NOSP, the Housing Association should continue trying to contact the client to discuss the matter. If the client makes an arrangement with them to pay their ongoing rent and a sum to their arrears, the Housing Association should agree to postpone further action. We advised the client that should they fail to make an arrangement, then once the notice period expires, the Housing Association can begin court action to repossess their home.
We advised the client that it is important that the client checks the NOSP for the Grounds that the Housing Association is relying upon to obtain possession. The most common grounds for seeking possession are Grounds 8, 10 and 11. We advised that Grounds 10 and 11 are discretionary which means that the court has a choice to make an order where you can pay the arrears in weekly payments under a suspended order. However, if Ground 8 is included in the NOSP and is relied upon in the possession proceedings, this is a mandatory ground. This means that if there are 8 weeks (or 2 months if rent is paid monthly) arrears at the date of the NOSP and date of the hearing then the court has no choice but to make a possession order.
Further we advised that, as the Tenancy is an Assured Shorthold, the Housing Association could instead serve a Section 21 Notice. In addition to a valid notice, the Housing Association must give the client a Notice of Non-Renewal if their tenancy is for 2 years or more and started on or after 1 April 2012. We advised the client to seek specialist housing advice from Shelter on 0300 330 1234 when they receive a NOSP or S.21 Notice.
We advised the client that upon receiving a Possession Claim hearing Form N119 they should respond to the claim using the Form N11R. As we are not specialist housing advisers, we advised the client at this stage to contact Shelter on 0300 330 1234.should they need advice on completing the form. We advised that the client should attend the hearing so that they can make their case. Failure to do so may result in a possession order being made.
We advised the client that they should get at least four weeks’ notice of the court hearing date. This hearing will be in a County Court (can also be called a Civil Justice Centre) and is not a criminal hearing. There will be no wigs, gowns and the hearing will be held in private in a judge’s room with just the judge, representatives of the council and anyone the client wants to take with them including for support and/or representation.
Further we advised that at least 10 days before their hearing, the Housing Association must provide them with an up to date rent statement, confirm details of the hearing and of the type of order that they are seeking and advising the client to attend.
We advised the client that the types of order that can be granted by the judge at the hearing are:
• An order Dismissing the council's action: For example, if all the arrears have been paid off before the hearing date or if the Housing Association has failed to bring the claim correctly.
• Adjournment: This puts off the case for a specified period to give the client time to provide extra information to support their case, or to pay off arrears in full, for example, by sorting out a claim for Housing Benefit.
• Suspended possession order: which means that if the client keeps to the court’s order to pay their full rent plus a set amount towards the arrears each week or month, the Housing Association will not be allowed to evict them. If the client fails to comply with the order, the Housing Association can then obtain a warrant of possession allowing bailiffs to evict them. This is not available if Ground 8 or a s.21 Notice has been relied upon by the Housing Association.
• Outright possession order: This means that at the end of a set period, usually four weeks, the client must vacate their home and give possession of the property back to the Housing Association otherwise they could obtain a warrant of possession allowing bailiffs to evict the client.
We advised the client that if the outright possession order has been made and the time to give possession up has expired or if they have not made the payments as required under the suspended possession order, the Housing Association can apply to the court for a Warrant of Possession. They do not usually need to give you warning of this or need another hearing to do this. This empowers County Court bailiffs to evict the client from the property and change the locks.
We advised that if the client receive a warrant for possession then it is still possible for them to stay in the property, but they must apply to the court for the warrant to be suspended before the date of the eviction. The notice of eviction (Form N54) informs them about this. The client should complete Form N244 and apply to suspend the warrant of possession as early as possible before the eviction date. There is a fee for this of £50 but help towards costs can be applied for using court form EX160 if the client has a low income or receive certain benefits. The court will likely set a new date for a hearing and therefore it is recommended that they attend. We also recommended to the client that they seek specialist housing advice from Shelter on 0300 330 1234.
4.3.13 Details
We advised the client that it is important that them to understand that their full rent needs to be paid to ensure that they keep their home. This is whether the rent is covered by Housing benefit, Universal Credit, Discretionary Housing Payments or payments from wages or any third parties.
We advised that for the arrears, the landlord will expect that the client makes either an arrangement to repay the arrears at an affordable amount, usually no less than £3.70 per week, or that they engage with another option to deal with their debt, such as an insolvency option or applying for a Discretionary Housing Payment (DHP).
We highlighted that current tenancy arrears are a priority debt as the ultimate sanction is that the client could lose their home if they don't pay them or take no action.
The first step in the possession process is to issue a Notice Seeking Possession (NOSP). This is a statutory letter that:
Sets out the reasons (grounds) they want to evict the client;
Tells the client when the landlord can start court action
The client usually get at least 4 weeks' notice of court action but the landlord can apply to court immediately in some cases of nuisance or antisocial behaviour.
We advised that after serving a NOSP, if the client makes an arrangement with their landlord to pay their ongoing rent and a sum to their arrears, the landlord should agree to postpone further action. We advised the client that should they fail to make an arrangement, then once the notice period expires, the landlord can begin court action to repossess their home.
We advised the client that it is important that the client checks the NOSP for the Grounds that the landlord is relying upon to obtain possession. The most common grounds for seeking possession are Grounds 8, 10 and 11. We advised that Grounds 10 and 11 are discretionary which means that the court has a choice to make an order where you can pay the arrears in weekly payments under a suspended order. However, if Ground 8 is included in the NOSP and is relied upon in the possession proceedings, this is a mandatory ground. This means that if there are 8 weeks (or 2 months if rent is paid monthly) arrears at the date of the NOSP and date of the hearing then the court has no choice but to make a possession order.
Further we advised that, as the Tenancy is an Assured Shorthold, the landlord could instead serve a Section 21 Notice. The rules around s.21 notices are complex and it is often the case that a private landlord does not serve the notice correctly which means the client can defend the proceedings. We advised the client to seek specialist housing advice from Shelter on 0300 330 1234 when they receive a NOSP or S.21 Notice.
We advised the client that upon receiving a Possession Claim hearing Form N119 they should respond to the claim using the Form N11R. As we are not specialist housing advisers, we advised the client at this stage to contact Shelter on 0300 330 1234. Should they need advice on completing the form. We advised that the client should attend the hearing so that they can make their case. Failure to do so may result in a possession order being made.
We advised the client that they should get at least four weeks’ notice of the court hearing date. This hearing will be in a County Court (can also be called a Civil Justice Centre) and is not a criminal hearing. There will be no wigs, gowns and the hearing will be held in private in a judge’s room with just the judge, representatives of the council and anyone the client wants to take with them including for support and/or representation.
We advised the client that the types of order that can be granted by the judge at the hearing are:
• An order Dismissing the council's action: For example, if all the arrears have been paid off before the hearing date or if the landlord has failed to bring the claim correctly.
• Adjournment: This puts off the case for a specified period to give the client time to provide extra information to support their case, or to pay off arrears in full, for example, by sorting out a claim for Housing Benefit.
• Suspended possession order: which means that if the client keeps to the court’s order to pay their full rent plus a set amount towards the arrears each week or month, landlord will not be allowed to evict them. If the client fails to comply with the order, the landlord can then obtain a warrant of possession allowing bailiffs to evict them. This is not available if Ground 8 or a s.21 Notice has been relied upon by the landlord.
• Outright possession order: This means that at the end of a set period, usually four weeks, the client must vacate their home and give possession of the property back to the landlord otherwise they could obtain a warrant of possession allowing bailiffs to evict the client.
We advised the client that if the outright possession order has been made and the time to give possession up has expired or if they have not made the payments as required under the suspended possession order, the landlord can apply to the court for a Warrant of Possession. They do not usually need to give you warning of this or need another hearing to do this. This empowers County Court bailiffs to evict the client from the property and change the locks.
We advised that if the client receive a warrant for possession then it is still possible for them to stay in the property, but they must apply to the court for the warrant to be suspended before the date of the eviction. The notice of eviction (Form N54) informs them about this. The client should complete Form N244 and apply to suspend the warrant of possession as early as possible before the eviction date. There is a fee for this of £50 but help towards costs can be applied for using court form EX160 if the client has a low income or receive certain benefits. The court will likely set a new date for a hearing and therefore it is recommended that they attend. We also recommended to the client that they seek specialist housing advice from Shelter on 0300 330 1234.
4.3.14 Details
We advised the client that it is important that them to understand that their full rent needs to be paid to ensure that they keep their home. This is whether the rent is covered by Housing benefit, Universal Credit, Discretionary Housing Payments or payments from wages or any third parties.
We advised that for the arrears, the landlord will expect that the client makes either an arrangement to repay the arrears at an affordable amount, usually no less than £3.70 per week, or that they engage with another option to deal with their debt, such as an insolvency option or applying for a Discretionary Housing Payment (DHP).
We highlighted that current tenancy arrears are a priority debt as the ultimate sanction is that the client could lose their home if they don't pay them or take no action.
We advised that as the client has a “6.6E free text box contents” type of tenancy then they will need to seek specialist housing advice about their status from Shelter on 0300 330 1234. This is because the process to seek possession and the notices required vary depending upon the type of tenancy or licence that the client has.
We advised that a landlord usually is required to give notice to a client and obtain a possession order from the County Court in order to evict them from the property. Again, due to the nature of the tenancy we advised the client to seek advice from Shelter on 0300 330 1234.
4.3.15 Details
We advised the client that if their home is not worth enough to repay the mortgage in full, this is known as having ‘negative equity’. If they have negative equity, their options can be limited.
Under the Financial Conduct Authority’s Mortgages and Home Finance: Conduct of Business sourcebook (MCOB), their lender should consider allowing the client to sell their home themselves and may offer to help the client sell their home under a voluntary assisted sale scheme as selling their home while they are still living there is likely to mean they will get a better price.
Handing back the keys, or repossession by the lender, could mean there is not enough money from the sale of the property to pay what is owed. The lender can ask the client to pay the difference. This is known as a ‘mortgage shortfall’.
4.3.16 Council Tax Arrears
No4.3.17 Council tax arrears recovery details
We advised the client that as they are having trouble keeping up with their council tax payments, but no liability order has been made, don't just stop paying. We advised that they contact the council and explain they are having difficulty. This is because the council may be able to agree a new payment plan with them and may apply for a liability order.
We advised the client that if they fall behind with council tax payments, the council may apply to the magistrates' court to make a 'liability order'. This is a court order that states that the client owes council tax but has not paid it. The council will also add on any court costs they have had to pay.
The council can ask for a liability order to be made against the person that they sent the original bill to. If another person is also responsible for paying the bill, the council can ask for a liability order against both people. Once the council has obtained a liability order, there is no time limit for enforcing it.
If the council gets a liability order and the amount stated is not paid, they can ask the client to give them certain information. The council can use this information to decide how to recover the unpaid council tax. The council must ask you for this information in writing and can include the name and address of the client’s employer; information about their earnings or what the client expects to earn; information about certain deductions taken, or expected to be taken, from their pay; the work or identity number used by the client’s employer; information about any other income the client gets (such as pensions or benefits); and whether anyone else is also liable for the debt.
We advised the client that they have 14 days to give the council these details. It is a criminal offence not to respond or to provide false information.
We advised the client that they can make an offer of payment to the council at any time before they use enforcement action, including after a liability order has been made. We advised that this could stop the council passing the debt to the Enforcement Agents (bailiffs) which will incur further costs that the client would have to pay.
We advised that usually, the council will want the arrears to be paid within the current council tax year. Sometimes, they may refuse the offer. If this happens, we advised the client to start making the offered payments straight away as this will show the council that their offer is affordable and begins to reduce their arrears. We advised the client that they can then ask the council to reconsider the offer.
We advised the client that each time they make a payment, include the council tax reference number and the liability order number if there is one. Also tell the council which council tax year their payment is for. This is because if they do not tell the council which debt the payment is for, they may allocate all of the payments to the current year's bill. If there are council tax arrears for more than one year, this could lead to unnecessary enforcement action on the older debt.
We advised the client that once the council has obtained a liability order, they can take further action against the client. This is called 'enforcement action' and can include using bailiffs to try and take the client’s goods; making deductions from earnings; making deductions from benefits; charging orders (where the debt is secured on a property the client owns); bankruptcy; and imprisonment.
The council can decide which type of enforcement action to use. However, they can only use one type of enforcement action at a time for each liability order that they have. Although there are different types of enforcement action, most councils prefer to use bailiffs or deductions from earnings to try to recover unpaid council tax.
Council tax is usually collected by a private firm of bailiffs on behalf of the local council. They try to take goods away and sell them, usually at auction, to raise money to pay the debt. The council can instruct bailiffs to act once they have got a liability order against the client. The process the bailiffs have to follow is called 'taking control of goods'.
The bailiffs should give the client seven clear days' notice that they are due to visit them. This is sometimes known as an 'enforcement notice'. 'Clear days' do not include Sundays, Christmas Day or bank holidays.
We advised the client that they do not have to let the bailiffs into their home. The bailiffs should not force their way into the client’s home unless the client has let them in on a previous visit; they took control of goods and the client has broken the agreement they made with the bailiffs; and they have given the client two clear days' notice.
We advised that the client should politely but firmly refuse to let the bailiffs in, without opening the door to them. Offer what the client can afford to pay. If the bailiffs accept the offer, ask them to return to their car and go out and pay them. Make sure to get a receipt.
If the client has not let the bailiffs in before, keep the doors locked. A bailiff is allowed to come into the property through an unlocked door, even if the client is not in at the time. Although bailiffs should not enter through a window, it is a good idea to keep windows closed.
We also advised that a bailiff can take control of goods outside of the client’s home, so if they have a vehicle, keep it in a locked garage. If the client parks the vehicle on their drive, the bailiffs could clamp it. If the client parks their vehicle away from their property, but on a public road and the bailiff finds it, they could clamp and possibly remove it.
We advised the client that if they have already let a council tax bailiff into their home, it is important to bear in mind the following points. The bailiff will not usually take away goods on their first visit.
They may ask the client to sign a 'controlled goods agreement'. This allows the client to keep using the items listed on the agreement. However, if they break the terms of the controlled goods agreement, the bailiff can return and take the goods by breaking in if necessary. They should give you two clear days' notice before doing this. If the client does not sign the agreement, the bailiff may remove the goods straight away or lock up the goods on the client’s premises.
A bailiff may not be able to take goods that are worth more than the client actually owes.
Council tax bailiffs should not take clothing, bedding, furniture and basic household items (such as a refrigerator or a cooker or microwave) that are necessary for the basic domestic needs of the client and their family; tools, books, telephones, computers, vehicles and other items of equipment that are necessary for use personally in the client’s job, business or education (up to a value of £1,350); and items the client or someone else is physically using where taking the goods is likely to lead to a breach of the peace.
The bailiff can only take goods belonging to the person (or people) named on the liability order. They should not take goods that belong to other people, including rented goods. If they threaten to do this, explain that the goods do not belong to you. Show a receipt or credit agreement as proof. If the owner hasn't got a receipt, they can provide a sworn statement called a 'statutory declaration' instead.
If a bailiff takes good belonging to a third party, the third party can write to the bailiff to show that they own the goods and that they should not have been taken into control. The bailiff should then pass this onto the creditor. The creditor will decide whether to accept or reject the third party's claim.
If the creditor rejects the claim, the third party can apply to court to get the goods back. However, they will need to pay the court a deposit. The size of the deposit depends on the value of the goods that have been taken. Contact us for advice.
Bailiffs can take goods that are jointly owned by the client and their partner, but if the client is the only person named on the liability order, they are only entitled to the client’s share of the goods.
If the bailiffs come into the client’s home, they may decide that the goods are not worth enough to cover the cost of them coming with a van to remove and sell them. If this is the case, the bailiff may return at a later date to try and take control of the client’s goods. They have 12 months from the date of the enforcement notice to take control of the goods. If the client agrees instalments on the debt with the bailiff and do not pay, the 12 months will not start until the arrangement has been broken.
If the bailiffs haven't yet been in and the client hides things by taking them somewhere else, the bailiffs may apply to court for permission to break into the place where the client has put the goods. If the bailiffs have already been in and taken control of the goods, we advised that the client is committing an offence if they remove goods that the bailiffs have said they will take.
If the bailiffs are collecting council tax arrears, there are certain procedures that they have to follow. They must have identification and written authorisation from the council with them when they call. They should show this if the client asks. Under the law, bailiffs have to leave paperwork explaining what they intend to do or what they have done. For example, bailiffs should give you notice telling the client that they intend to visit the client; when they have taken control of the client’s goods; and when they intend to re-enter the client’s premises after a previous entry.
Council tax bailiffs can charge the client the following fees if they start the type of action described. £75 for being instructed by the creditor, carrying out initial checks, investigations and receiving payments. A further £235 to cover visiting and entering premises and taking control of the goods. Another £110 to cover attending to remove the goods for sale, valuing them and arranging for them to be sold. On top of this they can add the cost of storing goods which the bailiff has removed and the cost of hiring a locksmith, if one is needed. If the client’s debt is over £1,500 or if the goods are sold at auction, further fees can be charged.
We advised the client that they can still make an offer of payment to the bailiffs and it is usually easier to get the bailiffs to accept the offer if they have never been into the client’s home or listed any of the goods to sell, such as a car. Even if the bailiffs refuse the offer, we advised the client to start making the payments. The bailiffs will add these to the client’s account and it shows the client is willing to pay. We told the client to always get a receipt or reference number for any money they pay.
We advised the client that if they have made regular payments to their council tax debt and can show that they are paying the arrears off, they could ask the council to take the account back from the bailiffs. Unless the council agree to this, the bailiffs can still collect the debt.
We advised that council can take the account back from the bailiffs if the bailiffs have been unsuccessful in collecting the debt. In those circumstances we advised that it is very important to make an arrangement to pay the council. If the client does not do this, the council may try other ways of recovering the money.
4.3.18 Council tax arrears recovery details
We advised that as the client is working then the council could look to recover the debt by a deduction from the client’s wages. This is when the council asks the client’s employer to take regular deductions from their earnings to repay the debt. It is called an 'attachment of earnings order'. The deductions will be made from the client’s 'net income' and are made on a sliding scale depending on how much the client earns. This means income the client has left after paying their tax and National Insurance.
We advised the client that their deduction rate will be
Net monthly earnings Deduction rate (%)
£0 - £300 0
£301 - £550 3
£551 - £740 5
£741 - £900 7
£901 - £1,420 12
£1,421 - £2,020 17
£2,021 or more 17 for first £2,020 and 50 for remainder
We advised the client that they may be able to agree with the council direct a fixed deduction from their wages. This avoids their employer having to do a separate calculation each pay day.
We advised the client that this could be a disciplinary offence and could put their job at risk especially if they are in a job handling money. We advised the client that they could raise this with the council that if they do a deduction from earnings they may lose their job and then the council will get even less money.
4.3.19 Council tax arrears recovery details
As the client is in receipt of benefits, the council can apply for a third party deduction from those benefits once a liability order has been made. The benefits the council can deduct from are Income Support, Pension Credit, income-related or contribution-based Employment and Support Allowance, income-based or contribution-based Jobseeker's Allowance or Universal Credit.
4.3.20 Council tax recovery details
If the debt is for £1,000 or more, the council can apply to the County Court for a legal charge on the home on which the council tax is owed. The council can only do this if the client owns the property. This means the debt is 'secured' on the home like a mortgage, and so may put the home at risk.
4.3.21 Council tax recovery details
If the debt is for £1,000 or more, the council can apply to the County Court for a legal charge on the home on which the council tax is owed. The council can only do this if the client owns the property. This means the debt is 'secured' on the home like a mortgage, and so may put the home at risk.
4.3.22 Gas and electricity arrears
No4.3.23 Hire Purchase Arrears
No4.3.24 TV Licence
No4.3.25 Child Maintenance Arrears
No4.3.26 HMRC arrears
No4.3.27 Tax Credits Overpayment
No4.4 Non-Priority Debts
4.5
Insert a new table for each non-priority creditor
4.5.1 Non-Priority Debts
Creditor Name | Account number | Joint/Sole Liability | Debt Secured - Y/N | Outstanding Balance | Balance Verified - Y/N | Current arrangement (inc. interest/costs?) | Recovery Action/Latest contact (inc. court action) |
---|---|---|---|---|---|---|---|
water | |||||||
cu loan | |||||||
CC |
4.5.2 Do you have any other debts?
No4.5.3
Next, we advised the client about their Non-Priority Debts. The sanctions open to creditors for non payment of non-priority debts are generally less serious than those for priority debts. Most non-priority creditors can only recover the money owed through County Court proceedings and then enforcing the judgment if you do not pay in accordance with its terms.
We discussed the following non-priority debts with the client: -
4.5.4 Do you have a Universal Credit Advance?
No4.5.5 Details
Advance payments can be recovered directly from the client if they are not receiving benefits from which deductions can be made. In such cases, non-payment could result in the DWP:
• Asking an independent debt collection agency to collect this money on the DWP’s behalf.
• Contacting the client’s employer to arrange for deductions to be made from the client’s earnings.
4.5.6 DWP Overpayments
No4.5.7 Details
Discussed recovery process if they were in receipt of legacy benefit and now in receipt of UC. Advised this was being repaid from benefits directly prior to moving to UC but now moved to UC then can be repaid at rate of up to 30% of monthly standard allowance. (depending on other deductions). This could mean they will not have enough money to cover their normal outgoings. Advised that if the amount being taken from their benefit is causing hardship, contact their local DWP office.
Advised client to show the DWP staff member their budget summary and explain the problems they are having. The DWP may be able to reduce the amount being taken out of their benefit.
Advised that if stop claiming benefits before the outstanding amount is repaid then may be able to include it with their non-priority debts. Advised to be careful as the DWP can take an amount out of other benefits instead. These benefits include contribution-based Jobseeker's Allowance, Incapacity Benefit, or contribution-based Employment and Support Allowance, Carer's Allowance, retirement pensions, Maternity Allowance and bereavement benefits. In some cases, the DWP may also be able to make deductions from their wages.
4.5.8 Details
We advised that DWP benefit overpayments are a non-priority debt and these can be recovered by the following means:
• Overpayments are usually recovered by making deductions from your ongoing entitlement or from other relevant income based benefits that you receive, such as ESA, JSA, Income Support or Universal Credit. However, if you are not currently receiving a benefit from which deductions can be taken, the following methods of recovery can apply:
4.5.9 Details
As you are working, your employer can be ordered to take deductions direct from your wages.
By using debt collectors who may add additional costs to the debt. Your credit rating may also be affected.
By getting a County Court order for debt recovery. This can result in the following enforcement action:
An attachment of earnings order as you or a joint party are working.
A third party debt order (Where an order is made against a person who owes you money, such as the DWP if they owe you backdated benefits, or from a bank holding savings for you.)
Making you bankrupt if the debt owed is £5000 or more.
4.5.10 Details
A charging order as you are a homeowner, securing the debt to your home.
4.5.11 Details
A charging order as you are a homeowner, securing the debt to your home.
4.5.12 Housing Benefit Overpayments
No4.5.13 Details
We advised the client that they have missed payments under their agreement but have not yet received a default notice. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor to issue the default notice. This gives the client 14 days to catch up with payments and if they do, the account will carry on, but if they cannot then the account will default. If the account defaults, the creditor will then be able to demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments will show on the client’s credit reference file and may impact on the client’s ability to obtain credit in the next 6 years, however, should further action such as a Default Notice or County Court Judgment be obtained then these will have an even greater impact on the client’s credit file.
4.5.14 Details
We advised the client that they have missed payments under their agreement, received a Default Notice, a claim has been made in the county court and a judgment made against the client.
We advised that when they received the Default Notice, they had 14 days to catch up with payments but as they were not able to do this, the account has defaulted. As such, the creditor can demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
Attachment of earnings order (only if 9.1.1 selected)
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
Charging order (only if 6.1.1 or 6.1.2 selected)
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.15 Details
Bank Loan Arrears
The client said that they have arrears on a bank loan owing to XXX in the sum of £
We advised the client that their bank loan is a non-priority. We advised that they cannot be sent to prison for failure to pay debts based on a contract. However, if they fall behind with the agreed payments, the creditor can take action to recover the debt from the client, including:
• Trying to contact the client by letter or phone.
• They may terminate or default the contract.
• They may terminate the provision of services to the client.
• They could pass the account to a debt collection agency.
• The client could face a county court claim and ultimately a County Court Judgment may be obtained.
See CPAG DAH https://askcpag.org.uk/?id=-217492.
4.5.16 Is the debt secured?
No4.5.17 Details
the debt is not secured4.5.18 Loan arrears recovery action
Passed to Debt Collection Agency4.5.19 Details
We advised the client that they have missed payments under their agreement but have not yet received a default notice. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor to issue the default notice. This gives the client 14 days to catch up with payments and if they do, the account will carry on, but if they cannot then the account will default. If the account defaults, the creditor will then be able to demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments will show on the client’s credit reference file and may impact on the client’s ability to obtain credit in the next 6 years, however, should further action such as a Default Notice or County Court Judgment be obtained then these will have an even greater impact on the client’s credit file.
4.5.20 Details
We advised the client that they have missed payments under their agreement, received a Default Notice and the debt has now been passed to a debt collection agency or sold to a debt purchasing company. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised that when they received the Default Notice, they had 14 days to catch up with payments but as they were not able to do this, the account has defaulted. As such, the creditor can demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that the debt has been passed on to a third party, the third party will try to collect the debt through reaching agreement with client for a payment amount. If this is not possible, the next step would be for the creditor to issue county court proceedings.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started. The court prefers that court action is avoided whenever possible and the protocol is designed to help with this. Where court action cannot be avoided, both the client and the creditor should try to act in a fair and reasonable way. This is to try and avoid causing costs and delays that are not necessary.
Before the creditor starts court action by sending the client a claim form they should send the client a letter of claim. The letter should tell the client the amount of the debt and whether interest is being added. If there was no written agreement, the letter should tell the client who made the agreement, what was agreed, and when and where it was agreed. If there is a signed agreement, the letter should give the date of the agreement, details of anyone else who signed it and tell the client that they can ask for a copy of the written agreement from the creditor.
If the debt has been sold on to a debt collection agency, the letter should give you details of the original debt and creditor, when it was sold on and which company it was sold to.
We advised that if payment by regular instalments is being made or offered, the letter should explain why a court claim is still being considered. The letter should give details of how the client can pay the debt, such as where and how to pay, and how the client can discuss payment options.
The letter of claim should be sent by post, either on the date shown at the top of the first page, or if that isn’t reasonably possible, the following day. If the client requested that the creditor doesn't post information to them, and have provided other contact details, the creditor should use those details to send the letter of claim to the client.
The letter of claim should also include helpful information and other forms.
• The information sheet - this is a guide which explains the client's rights and gives the client a step-by-step guide on what to do next.
• The reply form – the client needs to send this back to the creditor within 30 days. Use the reply form to tell the creditor whether the client owes the debt or not, to request more information or to let them know the client is seeking advice.
• A statement of means form – this is similar to a financial statement and should show the client’s income and expenditure as well as any other debts.
The letter of claim should:
• include an up-to-date statement of account for the debt;
• include the most recent statement of account for the debt and inform the client of any additional interest and charges added since; or
• tell the client the amount of interest and charges added since they took the debt out, if no statements have been provided.
We advised the client that if they receive a letter of claim they should also receive a reply form with it. They need to send the creditor the completed reply form within 30 days of the date at the top of the letter, even if they are not able to complete all of the sections.
Section 1 allows the client to say whether they owe all of the money, some of it, none of it, or that they don’t know if they owe anything.
Section 2 must be completed if the client agrees that they owe all or some of the money being claimed. This section allows them to say whether they can afford to pay the whole amount immediately, or if they will need to pay by instalments.
Section 3 allows the client to explain if they are receiving, or planning to seek, debt advice on whether they owe the debt or whether they can afford to pay the debt back.
Section 4 is used to ask the creditor to send the client more documents or send the creditor more documents such as proof of payment if some payments are missing from the account.
We advised the client that if they ask for a document or information the creditor must either provide it, or explain why it is not available, within 30 days.
When thinking about how to reply to a letter of claim it’s a good idea to think about whether there is still time for the claim to be made. The Limitation Act 1980 sets out the rules on how long a creditor has to take certain actions to recover a debt. The time limits are different depending on the type of debt.
We advised the client that if they confirm that you owe the debt when they reply to the creditor they may re-start the time limit the creditor has to start a court claim and so they should only do this after seeking specific advice from us.
We advised the client that if they come an agreement with the creditor over repaying the debt, they should not take court action as long as the client keeps to the agreement.
If the creditor makes a court claim, the court will expect both the client and the creditor to follow the protocol. The court will look at whether the main points have been met. If some minor details were not met by either the client or the creditor, the court may still find this acceptable.
We advised that it is important for the client to follow the protocol because if the client does not reply within 30 days, or they do not follow the pre-action protocol in any other way, the creditor can ask the court to increase the debt with additional interest. They do not have to do this and are unlikely to do so if the client agrees they owe the money. But if the court feels the protocol was not followed closely enough, it can add an extra amount of interest to the debt, on top of any interest already claimed by the creditor.
If the creditor does not follow the protocol and they eventually win their court case, the court may reduce the amount of any interest added to the debt.
Further if the client does not follow the protocol, the court may decide that the client has to pay all of the court costs. If the creditor does not follow the protocol, they may have to pay all of the court costs.
We advised the client that if they reply to the letter of claim but cannot come to an agreement with the creditor, the creditor should give the client at least 14 days' notice that they intend to start a court claim. The creditor should not start a court claim within either 30 days of receiving the completed reply form, or 30 days of providing the client with the documents they asked for.
We advised the client that if a claim is then issued and is not defended, a County Court Judgment is obtained. This will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments and the Default Notice will show on the client’s credit reference file and may impact on the client’s ability to obtain credit in the next 6 years, however, should further action such as a County Court Judgment be obtained then this will have an even greater impact on the client’s credit file.
4.5.21 Details
We advised the client that they have missed payments under their agreement, received a Default Notice, a claim has been made in the county court and a judgment made against the client.
We advised that when they received the Default Notice, they had 14 days to catch up with payments but as they were not able to do this, the account has defaulted. As such, the creditor can demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
4.5.22 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.23 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
4.5.24 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
4.5.25 Do you have an agreement for payment of the arrears?
No4.5.26 Details
they do not have an agreement to pay the arrears.4.5.27 Details
We advised the client that they have missed payments under their agreement but have not yet received a default notice. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor to issue the default notice. This gives the client 14 days to catch up with payments and if they do, the account will carry on, but if they cannot then the account will default. If the account defaults, the creditor will then be able to demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments will show on the client’s credit reference file and may impact on the client’s ability to obtain credit in the next 6 years, however, should further action such as a Default Notice or County Court Judgment be obtained then these will have an even greater impact on the client’s credit file.
4.5.28 Details
We advised the client that they have missed payments under their agreement, received a Default Notice, a claim has been made in the county court and a judgment made against the client.
We advised that when they received the Default Notice, they had 14 days to catch up with payments but as they were not able to do this, the account has defaulted. As such, the creditor can demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
4.5.29 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.30 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs.
4.5.31 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs.
4.5.32 Details
We advised the client that they have missed payments under their agreement but have not yet received a default notice. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor to issue the default notice. This gives the client 14 days to catch up with payments and if they do, the account will carry on, but if they cannot then the account will default. If the account defaults, the creditor will then be able to demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments will show on the client’s credit reference file and may impact on the client’s ability to obtain credit in the next 6 years, however, should further action such as a Default Notice or County Court Judgment be obtained then these will have an even greater impact on the client’s credit file.
4.5.33 Details
We advised the client that they have missed payments under their agreement, received a Default Notice, a claim has been made in the county court and a judgment made against the client.
We advised that when they received the Default Notice, they had 14 days to catch up with payments but as they were not able to do this, the account has defaulted. As such, the creditor can demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
Attachment of earnings order (only if 9.1.1 selected)
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.34 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.35 Details
Charging order (only if 6.1.1 or 6.1.2 selected)
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
4.5.36 Details
Charging order (only if 6.1.1 or 6.1.2 selected)
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
4.5.37 Details
We advised the client that they have missed payments under their agreement but have not yet received a default notice. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor to issue the default notice. This gives the client 14 days to catch up with payments and if they do, the account will carry on, but if they cannot then the account will default. If the account defaults, the creditor will then be able to demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments will show on the client’s credit reference file and may impact on the client’s ability to obtain credit in the next 6 years, however, should further action such as a Default Notice or County Court Judgment be obtained then these will have an even greater impact on the client’s credit file.
4.5.38 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.39 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
4.5.40 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
4.5.41 Details
We advised the client that they have missed payments under their agreement, received a Default Notice, a claim has been made in the county court and a judgment made against the client.
We advised that when they received the Default Notice, they had 14 days to catch up with payments but as they were not able to do this, the account has defaulted. As such, the creditor can demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
4.5.42 Details
We advised the client that they have missed payments under their agreement. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor, after following the Debt Pre-Action Protocol, to issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments for personal debts will not usually show on the client’s credit reference file, however should further action such as a County Court Judgment be obtained then these will have be registered and have an impact on the client’s credit file.
4.5.43 Details
We advised the client that they have missed payments under their agreement and a claim has been made in the county court and a judgment made against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
4.5.44 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.45 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.46 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.47 Details
We advised the client that they have missed payments under their agreement but have not yet received a default notice. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor to issue the default notice. This gives the client 14 days to catch up with payments and if they do, the account will carry on, but if they cannot then the account will default. If the account defaults, the creditor will then be able to demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments will show on the client’s credit reference file and may impact on the client’s ability to obtain credit in the next 6 years, however, should further action such as a Default Notice or County Court Judgment be obtained then these will have an even greater impact on the client’s credit file.
4.5.48 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.49 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.50 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.51 Details
We advised the client that they have missed payments under their agreement, received a Default Notice, a claim has been made in the county court and a judgment made against the client.
We advised that when they received the Default Notice, they had 14 days to catch up with payments but as they were not able to do this, the account has defaulted. As such, the creditor can demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
4.5.52 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.53 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information..
4.5.54 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information..
4.5.55 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information..
4.5.56 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information..
4.5.57 Details
We advised the client that they have missed payments under their agreement but have not yet received court action. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor to to demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments will show on the client’s credit reference file and may impact on the client’s ability to obtain credit in the next 6 years, however, should further action such as a Default Notice or County Court Judgment be obtained then these will have an even greater impact on the client’s credit file.
4.5.58 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.59 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.60 Details
We advised the client that they have missed payments under their agreement, a claim has been made in the county court and a judgment made against the client.
We advised that the creditor can demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
4.5.61 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.62 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.63 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.64 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.65 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.66 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.67 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.68 Details
Water & Sewerage Charges
The client said that they have a arrears on their Water and Sewerage Charges owing to XXX in the sum of £XXX
We advised the client that their water and sewerage charges arrears is a non-priority. We advised that they cannot be sent to prison for failure to pay debts based on a contract. However, if they fall behind with the agreed payments, the creditor can take action to recover the debt from the client, including:
• Trying to contact the client by letter or phone.
• They may terminate or default the contract.
• They may terminate the provision of services to the client.
• They could pass the account to a debt collection agency.
• The client could face a county court claim and ultimately a County Court Judgment may be obtained.
See CPAG DAH https://askcpag.org.uk/?id=-217492.
We advised the client that their water company cannot disconnect their domestic water supply when they are in arrears, or install anything in their home that restricts the flow of water from the taps.
However, some water companies threaten to disconnect a property on the basis that they think the property is empty. We, therefore, advised the client to keep in touch with the company to make sure they understand that the client is still in the property and that the company cannot disconnect the client’s water supply.
We advised the client that their water company has a special tariff which can reduce the amount of their current water charges. Tailor here for your local water company
4.5.69 Details
We advised the client that as they are on Income Support, Pension Credit, Employment and Support Allowance, Jobseeker’s Allowance or Universal Credit, they can ask the Department for Work and Pensions (DWP) to deduct a sum from their benefit or Universal Credit payment to cover current water rates and a standard amount towards the arrears. Contact your water company, or the Department for Work and Pensions (DWP), with details of the most recent water bill to arrange this.
We advised the client that if they do not agree a repayment arrangement, the water company can issue a county court claim to try to make the client repay the money they owe.
4.5.70 Is the debt secured?
No4.5.71 Water & Sewerage Charges Recovery Action
No action4.5.72 Do you have an agreement for payment of the arrears?
No4.5.73 Is water payment included in your rent?
No4.5.74 Details
Water meter
We advised the client that as they do not have a water meter at present then they can have a water meter put in so that they are only charged for the water they use. It may be cheaper to have a water meter put in if the client does not use much water. The client can usually swap back to the non-metered system within 12 months, if they don’t want the water meter because their bills are higher than before.
If the client has a water meter and need extra help to read it because of age, disability or illness, they can ask their water company to re-site the water meter to make it easier to read.
If the client would prefer a water meter, but the supplier tells them that one cannot be fitted, the client can ask their water company to be billed for an assessed charge. This may be cheaper than what they usually have to pay because it will be based on the average of what metered customers pay. You can read more about this at www.ccwater.org.uk.
Companies can put in a water meter when a property is sold, or a tenant moves out, or when there is a shortage of water in their area. In these cases, you do not have the right to swap back to a non-metered supply.
WaterSure
We advised the client that they may be able to get help with water bills if you are on a low income through WaterSure. WaterSure limits their bill to an amount equal to the average bill that the water company charges its customers. If they use a lot of water, their bill will go down with either scheme. They can stay on the scheme for a year and, when that comes to an end, they will have to reapply.
To qualify for help under the schemes, the client or someone living with them, needs be entitled to receive one of the following benefits or tax credits:
• Housing Benefit;
• Income Support;
• income-based Jobseeker’s Allowance;
• Working Tax Credit;
• Child Tax Credit (except families in receipt of the family element only);
• Universal Credit;
• Pension Credit; or
• income-related Employment and Support Allowance.
The client will need to give proof of the benefits they are receiving. The client also needs:
• to be responsible for three or more children under the age of 19 and in full-time education living in the property; or
• to have a medical condition which requires significant additional use of water, or someone living with you has this condition. Examples of medical conditions include weeping skin diseases (such as psoriasis), Crohn's disease or ulcerative colitis.
If the client has a medical condition that is not listed, they can still qualify if they use large amounts of water. They may need a doctor’s certificate as proof.
The client can get an application form from their water company.
Water trust funds
Many water companies run charitable trust funds. Some offer help only with water and sewerage debt; others are prepared to help with other priority debts and even bankruptcy fees in certain situations.
Some water companies run ‘restart schemes’. If you take part, you start a regular payment plan and the payments you make are matched by the trust fund. If you keep up with the payments, the rest of your debt may be written off. Contact your water supplier to find out how to apply. You will usually have to fill in a form. You may need an advice agency to help you.
We advised the client that if they do not enter into or qualify for one of the schemes then the water company can take action to recover the debt.
4.5.75 Details
We advised the client that they have missed payments under their agreement but no court action has been taken. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor to demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments will show not usually show on the client’s credit reference file, however, should further action such as a County Court Judgment be obtained then these will have an impact on the client’s credit file.
4.5.76 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.77 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.78 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.79 Details
We advised the client that they have missed payments under their agreement, a claim has been made in the county court and a judgment made against the client.
We advised that the creditor candemand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
4.5.80 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.81 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
• the client is employed; and
• the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.82 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.83 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.84 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.85 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.86 Details
Other Non-Priority Debts
The client said that they have XXX in the sum of £XXX
We advised the client that their “Answer 14.1.1.18.1A” is a non-priority. We advised that they cannot be sent to prison for failure to pay debts based on a contract. However, if they fall behind with the agreed payments, the creditor can take action to recover the debt from the client, including:
- Trying to contact the client by letter or phone.
- They may terminate or default the contract.
- They may terminate the provision of services to the client.
- They could pass the account to a debt collection agency.
- The client could face a county court claim and ultimately a County Court Judgment may be obtained.
See CPAG DAH https://askcpag.org.uk/?id=-217492.
4.5.87 Is the debt secured?
No4.5.88 Other non-priority debt recovery action
No action4.5.89 Details
>We advised the client that they have missed payments under their agreement but have not yet received a default notice. We advised the client that there is, therefore, still an opportunity to contact the creditor to reach an agreement with them or explore the other options that are available to them.
We advised the client that if no further action is taken then the next stage would be for the creditor to issue the default notice. This gives the client 14 days to catch up with payments and if they do, the account will carry on, but if they cannot then the account will default. If the account defaults, the creditor will then be able to demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that the debt is at an early stage and so there is opportunity to prevent any court action, however this is the ultimate sanction and if a County Court Judgment is obtained, this will add additional costs to the debt and can then be enforced. A County Court Judgment can be enforced through a number of methods including Attachment of Earnings Orders, Charging Orders, County Court Bailiffs, High Court Enforcement or a Third Party Debt Order, depending on your circumstances at the time of the enforcement.
We advised the client that any missed payments will show on the client’s credit reference file and may impact on the client’s ability to obtain credit in the next 6 years, however,, should further action such as a Default Notice or County Court Judgment be obtained then these will have an even greater impact on the client’s credit file.
4.5.90 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
- the client is employed; and
- the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.91 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.92 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.93 Details
We advised the client that they have missed payments under their agreement, received a Default Notice, a claim has been made in the county court and a judgment made against the client.
We advised that when they received the Default Notice, they had 14 days to catch up with payments but as they were not able to do this, the account has defaulted. As such, the creditor can demand payment of the debt in full, pass the debt to a debt collection agency, sell the debt to a debt purchasing company and/or, after following the Debt Pre-Action Protocol, issue a claim against the client in the county court to obtain a County Court Judgment against the client.
We advised the client that as they have informed us that a claim had been issued against them in the county court and a judgment has been obtained.
We advised the client that before a creditor can issue a claim, they have to follow the pre-action protocol which describes the way the client and the creditor are expected to behave, and the actions the client should take, before a court claim for payment of a debt is started.
We advised that the client that as part of the claim they would have received a ‘claim form’ from the court and they would have had the opportunity to reply to make their offer of repayment. This is called the ‘admission form’ or N9A.
We advised that if the creditor accepted the offer, the client received a CCJ from the court telling them to pay in monthly instalments. If the creditor did not accept the offer, the court would decide (or ‘determine’) what the client should pay each month.
We advised the client that if they client cannot afford what the court has decided should be paid, the client can apply to the court to look at the offer again. This is called a ’re-determination’. There is no fee for this. The client must do this within 14 days of getting the order. The client can do this by simply writing a letter to the County Court. Quote the case number. Attach the budget summary and explain why the client disagrees with the order the court has made.
The re-determination will be done by a District Judge. Where an order was made by the court staff, the District Judge can decide to have a hearing or make a decision by looking at the papers. The client can ask for a hearing when they write to the court and ask them to look at the case again.
If a District Judge made the original order without a hearing, then the re-determination of the offer must be decided at a hearing. If there is a hearing, the case will automatically be transferred to the client’s local County Court hearing centre so the client can attend. The court will send a hearing date which the client must attend. We advised the client that they should send the payments to the creditor, not the court. Keep a record of what they have paid and when. We advised the client that they could ask the creditor for a payment booklet to make it easier to pay or set up a direct debit or standing order.
If a District Judge made the first order on how much the client should pay at a hearing, the client cannot apply for a re-determination but must apply for the monthly payments to be reduced, or 'varied'.
We advised that a CCJ will normally be recorded on a public register called the Register of Judgments, Orders and Fines. This information is also registered on the client’s credit reference file. The information will stay on their credit reference file and the Register of Judgments, Orders and Fines for six years from the date the CCJ was made, unless the client pays the CCJ in full within one calendar month.
If the client pays the CCJ in full after one calendar month, they can ask for the entry to be marked as ’satisfied’ if the client provides proof of payment, but the CCJ will still stay on the client’s credit reference file. This is likely to affect the client’s ability to get credit.
The monthly payments you have been ordered to make may be reduced if your circumstances change or if you can’t afford them. You can apply for a reduction using form N245 which you can get from the local County Court hearing centre. There is a fee to pay. If you are on a low income or certain benefits, you may not have to pay the fee. If you have missed a payment because your circumstances have changed, you can use an N245 to apply for a reduction in your payments. If successful, this may stop your creditor from taking further action. See our Varying a CCJ fact sheet for more information.
There will usually be a fee to pay with the application but this this may not have to be paid if the client is on a low income at the time of the application.
Enforcement
The creditor will have to pay a fee to County Court for applications to enforce payment. The creditor will add the fee to your debt and in some cases there may be extra court costs which they can add as well.
The creditor may be able to take further action against the client to enforce payment through the court. They can only take certain types of enforcement action if the client has not paid the CCJ as the court ordered. The methods of enforcement are explained in the following sections.
Information order
Before using enforcement action, a creditor may ask the client to go to a court for an interview about their income, outgoings and any assets they have, such as their house. This is called an ‘information order’.
Creditors can ask the court to arrange an information order interview at any time and not just when the client misses a payment. The interview consists of a set of standard questions and the client may be asked to bring things like pay slips, outstanding bills and credit agreements to the interview. We advised the client that if they are asked to go to court for an information order interview, it is a good idea to work out a personal budget before they go.
It is very important that the client goes to the interview or tell the court if they cannot go. The court can send the client to prison for not cooperating with the process, so they must act if they are sent an interview date.
4.5.94 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
- the client is employed; and
- the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.95 Details
Attachment of earnings order
The creditor can only apply for an attachment of earnings order if:
the client is employed; and
the client has not paid the CCJ as the court ordered.
This means that the court can order the client’s employer to deduct a regular amount from their wages to pay back the debt. The creditor has to make an application to the court and the client will be sent a form to fill in and return to the court outlining the income and outgoings. The court then sets the amount that will be taken from the client’s wages. The client can ask the court to suspend an attachment of earnings order if their job will be affected.
4.5.96 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.97 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.98 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
4.5.99 Details
Charging order
The creditor can ask the court to put a charge on the client’s home which secures the debt. This means it should be paid off when the house is sold.
If your creditor applies for a CCJ on or after 1 October 2012, they can apply for a charging order even if the client keeps to the payments that the court ordered the client to pay. If your creditor applied for a CCJ before 1 October 2012, they can only apply for a charging order if the client has not kept to the payments that the court ordered the client to pay.
A charging order application is a two-stage process. If the client objects in time, there must be a hearing in front of a judge before it is made final. Having a final charging order does not mean the client will lose their home. A further application has to be made asking the court to order a sale of the client’s home.
Most creditors are prepared to wait for the client to sell their home until some point in the future, and to be paid out of the proceeds of the sale. If a creditor does make an order for sale application, a hearing will be arranged and the court has the final decision about whether the order should be granted.
Bailiffs
If the client has not paid their CCJ as the court ordered, the creditor can ask county court bailiffs (also known as enforcement officers) to call at the client’s home with the aim of taking the client’s goods. Bailiffs do not have the right to come into the client’s home unless the client has let them in before. Do not let them in. The client may be able to get a bailiff’s warrant suspended using a county court form called an N245.
Third party debt order
The creditor can instruct someone who owes the client money to pay the creditor instead. The creditor can only use this type of enforcement if the client has not paid the CCJ as the court ordered. The most likely way a third party debt order would be used is where the creditor finds out the client has savings in the bank and wants the bank to pay your savings to the creditor. It is a fairly unusual procedure which involves a hearing in front of the District Judge and a court order freezing the account.
High Court
If the CCJ is for a debt which is not regulated by the Consumer Credit Act 1974, your creditor can enforce it in the High Court by taking control of goods. Business and trade creditors are likely to do this. Also, it can sometimes be done for unpaid nursery fees, funeral charges or even water charges. ‘Taking control of goods’ involves High Court Enforcement Officers (HCEOs) visiting you. HCEOs are High Court bailiffs. See our High Court enforcement fact sheet for more information.
5 Financial Statement
5.1 Proof of Income
5.1.1 Client provided proof of income & expenditure
Yes5.1.2 What proof of income & expenditure provided
c
5.1.3 What proof of income/expenditure still outstanding
c
5.2 Status of SFS
5.2.1 Did you complete a financial statement with the client? (inc. explanatory notes)
Yes5.2.2 was it a completed or draft version?
Completed version5.2.3 Completed SFS details
We were able to complete the financial statement with the client who was able to confirm that the final statement was an accurate representation of their financial situation.5.2.4 Variable Income/expenditure averaged?
N/A5.2.5 Missing expenditure items?
No5.2.6 Expenditure items high or low?
No5.2.7 Deficit budget?
No5.2.8 Large surplus budget?
No5.2.9 Has a credit report been requested?
Yes5.2.10 From where have the credit reports been requested?
The credit report has been requested from XXX
5.2.11 Evidence on file to verify debts
Yes5.2.12 Have any Square Peg Debts been altered on SFS
Yes5.2.13 Which debts?
the square peg debts have been altered on the SFS.
The debts that have been altered are XXX
5.2.14 Has Housing Benefit been recorded as income on the SFS?
Yes5.2.15
You confirmed that the information you provided to form the financial statement was accurate and we advised you that this information is vital because any small differences can affect the advice that we give to you. We recommended that you review your budget carefully and ensure that it is realistic and covers all of your essential expenditure. Please feel free to make any changes as you see fit on the copy that we gave to you. We agreed that we will review your budget regularly.
6 Exploration of Solutions
6.1
Adviser reviewed the information provided by the client and their SFS. Based on this and the client’s goal, discussed with the client their options by going through the National Debtline “Ways to Clear your Debt” factsheet. In addition, there are the options of Moratorium and Do Nothing which were discussed despite not being included in the factsheet.
We advised that not all of the options are available to the client. Some options may be available to them but are not suitable for their circumstances. The status of each option is set out below: -
6.2
We advised the client about all suitable solutions. We provided them with the National Debt Line factsheets for each of the suitable solutions. We highlighted the sections to record that we discussed the advantages/disadvantages, actual or potential consequences and implications and obligations including the impact of debt remedies on credit reference files and banking, any eligibility criteria, debts covered by that option, any costs involved, likelihood of acceptance, and any risks associated with that option, including adverse costs orders in relation to court costs being made.
Once the client had been provided with the information about which debt options were not available, not suitable and the detailed advice on their suitable options, they were in a position to decide on their solution to pursue.
6.3 Informally Negotiated Arrangement
Unavailable6.4 Details
This option is not available because the client does not have any disposable income.
6.5 Full and Final Settlement
Unavailable6.6 Details
If unavailable = This option is not available because the client does not have a lump sum available to make this offer to their creditors.6.7 Write Off
Unavailable6.8 Details
A. If unavailable = This option is not available because the client does not have any health conditions or other reasons that would allow for the creditor to consider writing off the client’s debts.6.9 S.13A Write Off
Unavailable6.10 Details
If unavailable = This option is not available because the client does not have Council Tax Arrears.6.11 Details
If available but unsuitable = This option is available but is not suitable because the client has several creditors and it is unlikely that all creditors will agree to a write off which would mean that the client would need another debt solution.6.12 Debt & Mental Health Evidence Form Write Off
Unavailable6.13 Details
This option is not available because the client does not have a mental health condition.6.14 Administration Order
Unavailable6.15 Details
If unavailable = This option is not available because the client owes over £5000 in total AND/OR the client does not already have a CCJ AND/OR the client does not have 2 debts.6.16 Time Order
Unavailable6.17 Details
If unavailable = This option is not available because the client’s debts are not regulated by the Consumer Credit Act.6.18 Free DMP
Unavailable6.19 Details
If unavailable = This option is not available because the client does not have £5 per month per debt disposable income and the client would not be able to repay their debts in 10 years.6.20 IVA
Unavailable6.21 Details
If unavailable = This option is not available because the client does not have enough disposable income to make payments.6.22 Bankruptcy
Unavailabe6.23 Details
If unavailable = This option is not available because the total debt is less than the bankruptcy fees6.24 DRO
Unavailable6.25 Details
If unavailable = This option is not available because your disposable income is over £50 per month AND/OR your total debts are over £20,000 AND/OR your assets are over £1000 AND/OR you own your own home6.26 Consolidation Loan
Unavailable6.27 Details
If unavailable = This option is not available because the client would not be able to get credit for a further loan as payments are not affordable.6.28 Equity Release
Unavailable6.29 Details
This option is not available because the client does do not own their home.6.30 Pension Release
Unavailable6.31 Details
This option is not available because the client is under 55 years old AND/OR they do not have a private pension AND/OR it may adversely affect the client’s benefit entitlement.6.32 Selling Assets
Unavailable6.33 Details
This option is not available because the client does not have any assets to sell.6.34 Charitable Payment
Unavailable6.35 Details
This option is not available because the client does not fit the criteria for any available charitable payments for clearance of debts.6.36 Water Company Customer Assistance Fund
Unavailable6.37 Details
This option is not available because the client does not have a water debt.6.38 Do Nothing
Unavailable6.39 Details
This option is not available because XXX
6.40 Moratorium
Unavailable6.41 Details
This option is not available because the client has a disposable income to propose an alternative debt solution6.42 Limitation Act defence
Unavailable6.43 Details
This solution is not available because none of the client’s debts are close to being statute-barred.6.44
We advised the client about all suitable solutions. We provided them with the National Debt Line factsheets for each of the suitable solutions. We highlighted the sections to record that we discussed the advantages/disadvantages, actual or potential consequences and implications and obligations including the impact of debt remedies on credit reference files and banking, any eligibility criteria, debts covered by that option, any costs involved, likelihood of acceptance, and any risks associated with that option, including adverse costs orders in relation to court costs being made.Once the client had been provided with the information about which debt options were not available, not suitable and the detailed advice on their suitable options, they were in a position to decide on their solution to pursue.
6.45 Client’s Personal Circumstances
7 Chosen Solution
7.1
After reviewing all of the suitable solutions with the client, the client has chosen the following option:7.2 Chosen solution
bn
7.3 Does the chosen option(s) meet the client goal?
Yes7.4
We confirmed that the option met the client goal (if it does not then explain why chosen if not meet the goal7.5 Breathing Space
7.5.1 Is the client suitable for the Mental Health Access Mechanism Breathing Space?
No7.5.2 Details
the client is not suitable for Mental Health Access Mechanism Breathing Space because they do not have a mental health condition for which they are under the care of a Mental Health Practitioner.7.5.3 is the client suitable for Breathing space
Yes7.5.4 Details
The client is, however, suitable for mainstream Breathing Space because XXX
and To be eligible for a breathing space, you must:
- Be an individual. Note: if you have a joint debt with a third party, the moratorium will apply to that other person but only regarding the joint debt.
- Owe a qualifying debt.
- Be ordinarily resident in England or Wales.
- Not be under any insolvency option (DRO, Bankruptcy, IVA, Administration Order).
- Not already be in any breathing space moratorium.
- Not have had a standard breathing space moratorium in the past 12 months (unless you are applying for a Mental Health Breathing Space Moratorium).
- Be unable, or likely unable, to repay some or all of your debt as it falls due.
- A breathing space moratorium is appropriate if:
- A debt solution would help you.
- You are likely to be eligible for a debt solution during or as soon as possible after the breathing space moratorium ends.
- It gives you time to advise you about your options, for you to choose your best option and for necessary applications to be made.
When a Breathing Space moratorium may not be appropriate:
- If you need to enter into a debt solution straightaway and can do so.
- If you are concerned about the effect that a moratorium may have on a guarantor who may become liable to pay your debt.
- If a debt is about to become statute barred, an application for Breathing Space could restart the limitation period.
- If budgeting or financial capability options to increase your income or reduce your expenditure could quickly make it affordable for you to pay your debts.
- If you have realisable assets that could be sold to clear your debt.
You can only access the scheme if your debt adviser assesses that it is appropriate for you. In order to determine this, you must engage with a full debt advice appointment and a full assessment of your income, expenditure, debts and circumstances will be required.
Excluded debts
Most types of debt can be included in a Breathing Space but the following cannot, with exceptions as stated. Collection and Enforcement for the following excluded debts will therefore continue:
- Secured debts including mortgages secured on land, debts secured on assets whose value at least equals the amount of debt, hire-purchase and conditional sale agreements.
- Note: Arrears on these excluded debts are qualifying debts.
- If a debt is secured against an asset and the debt is higher than the value of the asset, the debt is a qualifying debt.
- Business debts when, at the time of your application, you are VAT registered or trading in a business partnership. If you are self-employed and unsure whether your business debts are excluded, contact the Business Debtline’s webchat service at www.businessdebtline.org/
- Fraudulent debts including benefit fraud where you have either admitted fraud, accepted an administrative penalty or been prosecuted and found guilty of fraud.
- Criminal fines or compensation orders including penalties payable under a conviction, interest on fines and any associated penalties or charges.
- Child maintenance arrears ordered under family proceedings or a child maintenance assessment.
- Social Fund Loans.
- Universal Credit payments on account including advance payments and budgeting advances.
- Student loans made under the Teaching and Higher Education Act 1998 or the Education (Student Loans) Act 1990.
- Damages due by you for causing death or personal injury to another person by Negligence, Nuisance or Breach of a statutory, contractual or other duty.
- Council tax bills not in arrears.
However if you have arrears (missed instalments) of council tax, these are qualifying debts. If you have received a reminder notice, any unpaid instalments and your remaining year’s bill is a qualifying debt. Time to pay on a reminder need not have run out.
- New debts:
New debts incurred during the moratorium can’t be added. Additional debts that accrued before the moratorium started but omitted on the application can be added but the moratorium period does not restart. e.g, if you add a debt with only four days to go until the moratorium ends, the moratorium will still end in four days for all debts.
- Guarantor loans are qualifying debts unless excluded for reasons above, but the moratorium will not cover the guarantor who would likely become liable if you apply for a moratorium. Check with your creditor. This may mean that a moratorium is not appropriate for you if you do not wish to have the guarantor become liable.
Moratorium debts
Are qualifying debts you owe when you enter a moratorium and owed at the time your application is made.
When applying, your adviser will notify the Insolvency Service of all your qualifying moratorium debts including ‘additional debts’ that are left off the application to be added later, for example, council tax for which a reminder is not yet in place.
You must include all qualifying debts on your application. If you have qualifying debts that you are not prepared to include, you would not be eligible for a Breathing Space.
Note: You can continue to make payments to debts included in the Breathing Space if you can afford to after paying your ongoing essential expenditure.
Obligations and restrictions.
Breathing Space has obligations on you before and during the moratorium.
Before the moratorium, you must:
- Take reasonable care to provide accurate information to your debt adviser.
- Not deliberately withhold relevant information from your application.
- To the best of your knowledge, provide details of all your debts at the date of your application.
During the moratorium, you must:
- Inform your advisor if there is any change in your circumstances or financial position as failure to notify a change in circumstances could result in your Breathing Space moratorium being cancelled, examples of this are:
You start a new job
Your income increases
You experience a problem that affects your ability to pay your ongoing liabilities or engage with your debt adviser. - Pay all of your ongoing liabilities as they fall due, such as:
- Mortgage or rent (excluding arrears owed at start of moratorium).
- Insurance (i.e. motor insurance, home and contents insurance)
- Income tax and national insurance contributions if you are not PAYE.
- Utilities i.e. water, electricity, gas, heating oil, solid fuel.
- Council tax (except where a reminder was issued and the whole bill for the year is included in your moratorium).
- Any other excluded debts / liabilities listed above such as fines.
- If you don’t pay ongoing liabilities when you can afford to, your moratorium may be cancelled. Therefore, you must try to keep up these payments and let us know if you have a problem. If you fail to pay an ongoing liability because you can’t afford it, your moratorium may not be cancelled but you must still tell us.
- Failure to pay an ongoing liability may mean that your account goes into arrears and defaults. Any debt incurred during a breathing space moratorium cannot be later included in it so you could face enforcement on that defaulted debt and your credit rating could be affected.
- Not take out further credit of £500 or more once the moratorium has started including overdrafts and any joint borrowing.
- Note: the £500 is cumulative, so if you take out a loan for £450 and then open a bank account with an overdraft of £100, you have breached this restriction and your moratorium could be cancelled.
- Engage with your debt advisor so they can provide you with advice and help you to consider potential options. Failure to engage with your adviser may result in your moratorium being cancelled.