County Court Judgement : paying off debts, credit debt management services, credit debt management, repayment to the creditor

Anyone who receives a letter summoning them to court for an outstanding debt will receive County Court Judgement action.

The court acts as a go between between you and your creditor and is not there to punish you, but to ensure fairness between you and the creditor. It may even help you solve your problem. Paying the debt owed on the court letter before the court date will avoid the court hearing. By paying your debt within one month eill ensure your credit file is kept up to date and not affected.

Your case is normally heard in the county court, which is not a criminal court. If the debt owed is less than £5,000 then the claim will go to small claim's court. If it’s more than £5,000 you should seek legal advice.

The first stage in any Court Process is the receipt of a County Court Claim Form otherwise known as a Summons. You must reply to the Summons within the time specified on the form giving details of your circumstances; this also states which creditor it is referring to and how much you owe that creditor. As part of the summons you will need to complete a Financial Statement reflecting your current status with your monthly income and expenditure stated on the form. You will need to put an offer of repayment to the creditor based on what you can afford as a pro-rata payment.

Contact a Debt Plan Direct adviser for further assistance

A County Court Judgement will be issued if the Court accepts your offer of repayment; this will also give you details of when to pay. If your repayment proposal is not accepted or you was late in replying you will then be issued with the County Court Judgment to pay an amount decided by the court; possibly more than you can afford.

If you cannot afford the payment you are requested to pay by the court you write to the Court for a redetermination of the payment within 14 days of receipt of the judgement. When you write to the court it is a good idea to enclose a copy of your financial statement; this will not cost you anything.

If during the time that you are repaying the county court judgement your personal financial circumstances change so you are no longer able t oaffrod the repayment, you can apply for a variation of the judgement using the N245 form. Any amendment to the judgement will cost you £30.00, if you are in receipt of benefits you can complete a fee exemption form and not have to pay anything. On the judgement amendment form you should put details of your new proposed offer of repayment and then send the form to the Court along with any fee.

If the offer of payment is still too high for you to afford, it is important you seek the help of a money adviser as soon as possible. Once you default on a County Court Judgement, the creditor has more severe sanctions available such as instructing bailiffs to remove goods from your home, contacting your employer to arrange for their debt to be paid direct from your wages (Attachment of Earnings) or attempting to petition for your bankruptcy.