Court Action – County Court Judgements

On Tuesday I blogged about Default Notices, todays blog will follow on from that to go through the different types of court action your creditors could then take if you do not acknowledge the notice.

Under the Consumer Credit Act 2006, before a creditor can pursue any kind of legal action they must issue you a default notice. Once the default notice has been issued the creditor can then seek further legal action against you.

The first thing they would look to do is issue you with a County Court Judgement or CCJ. A CCJ is where the creditor or claimant attempts to reclaim the money that is owed to them by going through the County Courts. The first stage of the process is a County Court Claim form or a N1, once you receive this you must act very quickly as you only have 14 days to respond to the form.

There are three options to deal with a Claim Form:

You can deny the debt. You can counterclaim against the creditor. Or you can admit the debt.

If you admit the debt, you must fill out your income and expenditure on the N1 as well as detailing who else you owe money to and you offer of payment, and send this to the creditor or their agent, as detailed on the claim form

If you are already in a plan with Payplan and the debt is on the plan, you can sign and send the N1 to us and we will do everything for you.  (If you are denying or counterclaiming the debt, then Payplan is not able to help and you should seek advice from your local CAB or a solicitor.)

If you ignore the N1 or miss the deadline the creditor can then ask the courts for a Judgment by Default which means they can ask you for the full amount outstanding plus court costs.

Once you have sent the N1 form back to the creditor or their agent, they will then decide on what action to take. If the offer is accepted then you will be sent a CCJ detailing how, when and where to make your payments. This form will be called Judgement Acceptance N30 (1).

If you returned the N1 form in time, but the creditor objected to your offer of payment, you will receive a Judgment after Determination.  If this is more than you can afford then you can apply for a Redetermination, this is free to do and you must apply for this within 16 days of judgement. To apply for redetermination you can either write a letter direct to the court or you can submit an Application Notice N244. If this is accepted then you will receive a General Judgment detailing how and when to make your payments.

If you failed to send back the N1 form or missed the deadline then the court will make a judgement on the offer of repayment and will issue the CCJ without you. The offer of payment may be more than you can afford which is why it is so important to send your form back as soon as possible. This form will be called Judgement in Default N30.

If your circumstances change and you find you can no longer afford the payments you should then apply for a Variation Order N245. This costs £35.00 to do and you will offer your creditor reduced instalments.  If you are in receipt of certain income-based benefits, you may be able to get this form processed for free.

If you stop making payments or do not keep up with the agreed payment then your creditors could seek further action in the form of

Bailiffs

Bankruptcy

Attachment of Earnings

Charging Order

If you have any questions at all about CCJ’s or need help with your debts then please call us. 0800 2802816

Don’t forget you can also follow me on Facebook and Twitter.

Written by davemac on January 27th, 2011

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Posted in: Action,County,Court,Judgements

Court Action – Attachment of Earnings

Following on from my other blogs about Default Notices and CCJ’s I am now going to talk about one of the next steps if you do not keep up with the repayments under the CCJ – Attachment of Earnings.

An Attachment of Earnings (or AOE) is where your creditor applies through the court to be paid directly from your wages in order to guarantee their money. If the AOE is granted then your employer will be notified and each time you are paid, a percentage is given straight to the creditor and you will get the remaining amount.

Sometimes your employer may charge you £1 in admin fees for the extra administration they put into paying you, and they are within their rights to do so.

As already mentioned, if an AOE is granted then your employer pays a certain amount to them each month or week depending on how often you are paid. They will then continue to do this until the debt has been paid in full. At this point you will resume receiving your full wage again.

If you change employer then the AOE will need to be transferred over to your new employer straight away. It is your responsibility to ensure that this happens and it is an offence not to do this.

Once your creditor applies to the court for an AOE you will be sent an N56 form. You must fill out this form and disclose your financial circumstances. This form must be returned within eight days.

If you do not return the form then the County Court bailiffs will serve the form to you. If you still do not return the form then the court will issue a warrant for your arrest and you will be taken to court to explain why you haven’t returned the form.

Sometimes, if you do not return the form to start with, your creditor could go directly to your employer.

An Attachment of Earnings affects some jobs so you always need to check your contract of employment if you receive an N56 form. You can ask for the AOE not to be granted by filling out the N56 form and you would explain the reason for not wanting the AOE is because you would lose your job, and it will then be up to the court to decide what to do. If they decided not to enforce the AOE then you would receive a Suspended Attachment of Earnings and will come to a new agreement with your creditor. If you then fail to make the payments as per the new agreement, the AOE can be set up immediately without any further notification to you.

If you are struggling with debts then please call Payplan on 0800 2802816.

Don’t forget you can also follow me on Facebook and Twitter.

Written by davemac on February 3rd, 2011

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Posted in: Action,Attachment,Court,Earnings

Court Action – Charging Orders

Following on from my other blogs, another option for your creditors after a CCJ is to apply a Charging Order against your property.

A Charging Order is where an unsecured creditor secures the amount owing to them on your property. This is done through the courts, just like with a CCJ.

Anyone who owns a property with unsecured debts who has previously defaulted on payments and had at least a CCJ issued against them. The property doesn’t have to be in your sole name, creditors can make a sole debt secured against a jointly owned property.

What happens with a Charging Order application?

After you break the terms of the CCJ your creditor will apply to the courts to turn the unsecured debt into a secured debt against the debtor’s property. Once the application has been made you will receive notification of this as well as a hearing date.

It is always in your best interest to attend the hearing so that you can plead your case to the judge. When you attend the hearing you will need to take with you the following: income and expenditure breakdown, list of all creditors and anything else that you feel will help your case. If the Charging Order is granted then you will be required to maintain monthly payments to the creditor or risk losing your house.

It is very unlikely that a creditor would want to apply a charge to your property if there is not equity as there would be no gain for them. However if your property is in negative equity then they could still proceed to try and apply a charge. If you have proof that there is no equity in your property then you would provide this at your Charging Order hearing.

If you do not maintain your payments towards your secured loan then your property is at risk of being repossessed.

If you jointly own the property with your partner or someone else, as mentioned earlier the creditor can still apply a charge to the property. If you fail to maintain the payments then your creditor can repossess the property. Once the property has been sold and the outstanding mortgage has been paid then the equity is split 50/50. Your 50% would go towards paying the secured loan and your partner would keep their 50%

If you are struggling with debts then please call Payplan on 0800 2802816.

Don’t forget you can also follow me on Facebook and Twitter.

Written by davemac on February 8th, 2011

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Posted in: Action,Charging,Court,Orders

Court Action – Charging Orders

Written by Lizzy on Tuesday 8 February 2011

Following on from my other blogs, another option for your creditors after a CCJ is to apply a Charging Order against your property.

A Charging Order is where an unsecured creditor secures the amount owing to them on your property. This is done through the courts, just like with a CCJ.

Anyone who owns a property with unsecured debts who has previously defaulted on payments and had at least a CCJ issued against them. The property doesn?t have to be in your sole name, creditors can make a sole debt secured against a jointly owned property.

What happens with a Charging Order application?

After you break the terms of the CCJ your creditor will apply to the courts to turn the unsecured debt into a secured debt against the debtor?s property. Once the application has been made you will receive notification of this as well as a hearing date.

It is always in your best interest to attend the hearing so that you can plead your case to the judge. When you attend the hearing you will need to take with you the following: income and expenditure breakdown, list of all creditors and anything else that you feel will help your case. If the Charging Order is granted then you will be required to maintain monthly payments to the creditor or risk losing your house.

It is very unlikely that a creditor would want to apply a charge to your property if there is not equity as there would be no gain for them. However if your property is in negative equity then they could still proceed to try and apply a charge. If you have proof that there is no equity in your property then you would provide this at your Charging Order hearing.

If you do not maintain your payments towards your secured loan then your property is at risk of being repossessed.

If you jointly own the property with your partner or someone else, as mentioned earlier the creditor can still apply a charge to the property. If you fail to maintain the payments then your creditor can repossess the property. Once the property has been sold and the outstanding mortgage has been paid then the equity is split 50/50. Your 50% would go towards paying the secured loan and your partner would keep their 50%

If you are struggling with debts then please call Payplan on 0800 2802816.

Don’t forget you can also follow me on Facebook and Twitter.

Filed Under  Debt News  |  Trackback

Leave a Comment Leave a Reply

View the original article here

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Posted in: Action,Charging,Court,Orders

Court Action – County Court Judgements

Written by Lizzy on Thursday 27 January 2011

On Tuesday I blogged about Default Notices, todays blog will follow on from that to go through the different types of court action your creditors could then take if you do not acknowledge the notice.

Under the Consumer Credit Act 2006, before a creditor can pursue any kind of legal action they must issue you a default notice. Once the default notice has been issued the creditor can then seek further legal action against you.

The first thing they would look to do is issue you with a County Court Judgement or CCJ. A CCJ is where the creditor or claimant attempts to reclaim the money that is owed to them by going through the County Courts. The first stage of the process is a County Court Claim form or a N1, once you receive this you must act very quickly as you only have 14 days to respond to the form.

There are three options to deal with a Claim Form:

You can deny the debt. You can counterclaim against the creditor. Or you can admit the debt.

If you admit the debt, you must fill out your income and expenditure on the N1 as well as detailing who else you owe money to and you offer of payment, and send this to the creditor or their agent, as detailed on the claim form

If you are already in a plan with Payplan and the debt is on the plan, you can sign and send the N1 to us and we will do everything for you.? (If you are denying or counterclaiming the debt, then Payplan is not able to help and you should seek advice from your local CAB or a solicitor.)

If you ignore the N1 or miss the deadline the creditor can then ask the courts for a Judgment by Default which means they can ask you for the full amount outstanding plus court costs.

Once you have sent the N1 form back to the creditor or their agent, they will then decide on what action to take. If the offer is accepted then you will be sent a CCJ detailing how, when and where to make your payments. This form will be called Judgement Acceptance N30 (1).

If you returned the N1 form in time, but the creditor objected to your offer of payment, you will receive a Judgment after Determination.? If this is more than you can afford then you can apply for a Redetermination, this is free to do and you must apply for this within 16 days of judgement. To apply for redetermination you can either write a letter direct to the court or you can submit an Application Notice N244. If this is accepted then you will receive a General Judgment detailing how and when to make your payments.

If you failed to send back the N1 form or missed the deadline then the court will make a judgement on the offer of repayment and will issue the CCJ without you. The offer of payment may be more than you can afford which is why it is so important to send your form back as soon as possible. This form will be called Judgement in Default N30.

If your circumstances change and you find you can no longer afford the payments you should then apply for a Variation Order N245. This costs ?35.00 to do and you will offer your creditor reduced instalments.? If you are in receipt of certain income-based benefits, you may be able to get this form processed for free.

If you stop making payments or do not keep up with the agreed payment then your creditors could seek further action in the form of

Bailiffs

Bankruptcy

Attachment of Earnings

Charging Order

If you have any questions at all about CCJ?s or need help with your debts then please call us. 0800 2802816

Don’t forget you can also follow me on Facebook and Twitter.

Filed Under  Debt News, Payplan, debt advice, debt help  |  Trackback

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View the original article here

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Posted in: Action,County,Court,Judgements

Court Action – Attachment of Earnings

Written by Lizzy on Thursday 3 February 2011

Following on from my other blogs about Default Notices and CCJ?s I am now going to talk about one of the next steps if you do not keep up with the repayments under the CCJ ? Attachment of Earnings.

An Attachment of Earnings (or AOE) is where your creditor applies through the court to be paid directly from your wages in order to guarantee their money. If the AOE is granted then your employer will be notified and each time you are paid, a percentage is given straight to the creditor and you will get the remaining amount.

Sometimes your employer may charge you ?1 in admin fees for the extra administration they put into paying you, and they are within their rights to do so.

As already mentioned, if an AOE is granted then your employer pays a certain amount to them each month or week depending on how often you are paid. They will then continue to do this until the debt has been paid in full. At this point you will resume receiving your full wage again.

If you change employer then the AOE will need to be transferred over to your new employer straight away. It is your responsibility to ensure that this happens and it is an offence not to do this.

Once your creditor applies to the court for an AOE you will be sent an N56 form. You must fill out this form and disclose your financial circumstances. This form must be returned within eight days.

If you do not return the form then the County Court bailiffs will serve the form to you. If you still do not return the form then the court will issue a warrant for your arrest and you will be taken to court to explain why you haven?t returned the form.

Sometimes, if you do not return the form to start with, your creditor could go directly to your employer.

An Attachment of Earnings affects some jobs so you always need to check your contract of employment if you receive an N56 form. You can ask for the AOE not to be granted by filling out the N56 form and you would explain the reason for not wanting the AOE is because you would lose your job, and it will then be up to the court to decide what to do. If they decided not to enforce the AOE then you would receive a Suspended Attachment of Earnings and will come to a new agreement with your creditor. If you then fail to make the payments as per the new agreement, the AOE can be set up immediately without any further notification to you.

If you are struggling with debts then please call Payplan on 0800 2802816.

Don’t forget you can also follow me on Facebook and Twitter.

Filed Under  Debt News  |  Trackback

Leave a Comment Leave a Reply

View the original article here

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Posted in: Action,Attachment,Court,Earnings