Case ref: v. v. Interview by Lauren

1 Action Plan

1.1 Interview date

2022-02-23

1.2 Actions Taken In Appointment

Debt/Issue	Action
v	v

1.3 Client next steps

Debt/Issue	Action	By When
v	v	v

1.4 Advisor Next Steps

Debt/Issue	Action	By When
v	v	v

1.5 Next Steps

By Whom	Debt/Issue	Action	By When
	v	v	v

1.6 Preliminaries

1.6.1 Do you require an interpreter or Language Line Services?

No

1.6.2 Do you have a Support Worker who attended the appointment? – Yes / No

No

1.6.3 Do you have any Accessibility needs

No

1.7 Client Identification

1.7.1 Name

v

1.7.2 Address

v

1.7.3 Case number

v

1.7.4 Photo ID Provided?

No

1.8 Client Goal

1.8.1 What is your goal regarding your debts and money management?

v

1.8.2 What does the client want from the advice session?

General advice on debt options

2 Exploration of Facts

2.1 Emergency/Urgent Issues

2.1.1 Does the client have any emergency or urgent issues?

No

2.1.2 Details

Yes = that you have an urgent issue which we advised you about and addressed at the appointment

2.1.3 Details

The client confirmed that they have an eviction date on:

2.1.4 Details

The client confirmed that they are due to be disconnected on:

2.1.5 Details

The client confirmed that they have a possession hearing on:

2.1.6 Details

The client confirmed that they have a court date on:

2.1.7 Details

The client confirmed that they are being threatened with committal on:

2.2 Health

2.2.1 Do you have any of the following health conditions? – tick all that apply.

No health conditions

2.3 Personal Situation

2.3.1 What is your immigration status?

Prefer not to say

2.4 Housing Status

2.4.1 Who else is living at the property with you? (Relation and age)

n

2.4.2 Client’s Housing Status

Prefer not to say

2.4.3 Who is your landlord?

As the client is renting their property, they said that their landlord is:

2.4.4 How much is your total rent?

The client confirmed that their total rent is £XXX

2.4.5 How much Housing Benefit / Local Housing Allowance / UC Housing Costs do you get?

The client confirmed that they receive £XXX for Housing Benefit / Local Housing Allowance / UC Housing Costs.

2.5 Reason for Financial Difficulties

2.5.1 Do you think their current financial and personal situation is stable or unstable?

Stable

2.5.2 What are the main reasons for their current financial difficulties? (tick all that apply)

Low income

2.5.3 Are there any underlying issues

n

2.5.4 Are the difficulties likely to be long term or temporary?

Long Term

2.5.5 Why are the difficulties long term?

Situation unlikely to improve

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 same

2.6 Previous Actions

2.6.1 Are you new or returning to the debt advice service?

new

2.6.2 Details

they have not received debt advice before.

2.6.3 What actions have you taken so far about their debts?

n

2.6.4 Have you had any formal insolvency options (DRO, IVA, bankruptcy etc.) before?

No

2.6.5 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)

Wages

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 Any deductions for an attachment of earnings from their wages?

No

2.7.4 Details

The client said that they do not have an attachment of earnings from their wages

2.7.5 Details

The client confirmed that they were in receipt of benefits and so they provided the following information that:

they are in receipt of:

The client confirmed that they are in:

2.8 Savings & Assets Details

2.8.1 Does the client have any assets or savings?

2.8.1.1

Equity in home

2.8.1.1.1 Equity in home yes/no

No

2.8.1.2

Savings

2.8.1.2.1 Savings yes/no

No

2.8.1.3

Vehicle

2.8.1.3.1 Vehicle yes/no

No

2.8.1.4

Pension Fund

2.8.1.4.1 Pension Fund yes/no

No

2.8.1.5

Compensation

2.8.1.5.1 Compensation yes/no

No

2.8.1.6

Backdate of Benefits

2.8.1.6.1 Backdate of Benefits yes/no

No

2.8.1.7

Redundancy Payment

2.8.1.7.1 Redundancy Payment yes/no

No

2.8.1.8

Pending insurance/PPI claim

2.8.1.8.1 Pending insurance/PPI claim yes/no

No

2.8.1.9

Other Assets

2.8.1.9.1 Other Assets yes/no

No

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?

No

3.1.1.2 Details

concluded that the client was not suitable for a tax code check.

3.1.1.3 Benefit check carried out

No as referred to specialist

3.1.1.4

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?

No

3.1.3 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?

No

3.1.5 Details

they are receiving all child maintenance that they are entitled to.

3.1.6 Do you have any entitlement to Marriage Allowance that is not being received?

No

3.1.7 Details

they are receiving all Marriage Allowance that they are entitled to.

3.1.8 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.

3.1.9 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.

3.1.10 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.

3.1.11 Details

No further assistance as the client is receiving all of their entitlement.

3.1.12 Details

No assistance as the client is not liable for Council Tax.

3.1.13 PIP

No

3.1.14 Does the client require advice about Budgeting and Saving?

No

3.1.15 Details

Concluded that the client does not require any advice on budgeting and saving because they are already doing what we would advise.

3.1.16 Does the client require advice about their TV Licence?

No

3.1.17 Details

concluded that the client does not require any advice on their TV Licence as they have sufficient available budget to manage the payments at their current payment arrangement.

3.1.18 Does the client require advice about Switching Energy Supplier?

No

3.1.19 Details

concluded that the client does not require any advice on switching their energy suppliers because they are unable to do so.

3.1.20 Does the client require advice about Warm Home Discount?

No

3.1.21 Details

concluded that the client does not require any advice on the Warm Home Discount as they do not qualify for it.

3.1.22 Does the client require advice about Crisis Fund application

No

3.1.23 Details

concluded that the client does not require any advice on the Crisis Fund payments as they are not experiencing a crisis that would qualify for a payment from their local authority.

3.1.24 Does the client require advice about Downsize/Lodger?

No

3.1.25 Details

concluded that the client does not require any advice on downsizing or taking in a lodger as they are not subject to any under-occupation charge.

3.1.26 Does the client require advice about Best Deals - Phone Calls?

No

3.1.27 Details

concluded that the client does not require any advice on best deals for phone calls as the client does not have a phone deal that can be changed.

3.1.28 Does the client require advice about Best Deals - Broadband?

No

3.1.29 Details

concluded that the client does not require any advice on best deals for broadband as the client does not have a broadband deal that can be changed.

3.1.30 Does the client require advice about Help with Water Bills?

No

3.1.31 Details

concluded that the client does not require any advice on Help with Water Bills as the client does not qualify for assistance with their water bill.

3.1.32 Does the client require advice about Reducing/Help with Travel Costs?

No

3.1.33 Details

concluded that the client does not qualify for assistance with travel costs.

3.1.34 Does the client require advice about Help with Prescription Costs?

No

3.1.35 Details

concluded that the client does not qualify for assistance with prescription costs.

3.1.36 Does the client require advice about Charitable Trust Funds?

No

3.1.37 Details

concluded that the client does not qualify for assistance from Charitable Trust funds.

3.1.38 Does the client require advice about Foodbank Vouchers?

No

3.1.39 Details

concluded that the client does not require a Foodbank voucher.

3.1.40 Does the client require advice about School Meals?

No

3.1.41 Details

concluded that the client does not require advice about free school meals.

3.1.42 Does the client require advice about Child Care Costs?

No

3.1.43 Details

concluded that the client does not require advice about childcare costs.

3.1.44 Does the client require advice about sale of non-essential items?

No

3.1.45 Details

concluded that the client does not require advice about sale of non-essential items.

3.1.46 Does the client have home contents insurance?

No - not wanted

3.1.47 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?

No

4.1.2 Details

are not disputing their liability for any of their debts.

4.1.3 Any potential challenge under Debt & Mental Health?

No

4.1.4 Details

You have no mental health issues that would allow for us to be successful in challenging the debts

4.1.5 Any debts statute-barred?

No

4.1.6 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?

No

4.1.8 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 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.

4.3.2 Details

The client said that they have not received a court hearing date

4.3.3 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)

4.3.4 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.

4.3.5 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.

4.3.6 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.

4.3.7 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.

4.3.8 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.

4.3.9 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’.

4.3.10 Council Tax Arrears

No

4.3.11 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.

4.3.12 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.

4.3.13 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.

4.3.14 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.

4.3.15 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.

4.3.16 Gas and electricity arrears

No

4.3.17 Hire Purchase Arrears

No

4.3.18 TV Licence

No

4.3.19 Child Maintenance Arrears

No

4.3.20 HMRC arrears

No

4.3.21 Tax Credits Overpayment

No

4.4 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)
n	n	n	ngeds	nhftrherh	nrhebreh	nherhge	nrghehr

4.5.2 Do you have any other debts?

Yes

4.5.3

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 any Social Fund Loan arrears?

No

4.5.5 Do you have a Universal Credit Advance?

No

4.5.6 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.

4.5.7 DWP Overpayments

No

4.5.8 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.

4.5.9 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:

4.5.10 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.

4.5.11 Details

A charging order as you are a homeowner, securing the debt to your home.

4.5.12 Details

A charging order as you are a homeowner, securing the debt to your home.

4.5.13 Housing Benefit Overpayments

No

4.5.14 Do you have any Overdrafts?

No

4.5.15 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.

4.5.16 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.

4.5.17 Bank Loan Arrears

No

4.5.18 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.

4.5.19 Details