The people you owe can take court action if you do not come to a payment agreement. This is usually a last resort.
The people you owe issue a claim in the county court when they start court action.
- They can only do this after your account defaults
- This is for most types of unsecured consumer debt, like:
- Credit cards
- Overdrafts
- Payday loans
They must send you a 'letter of claim' in the post first.
This includes:
- Details of the debt
- A reply form
Fill this in and return it straight away
They can start court action if you do not respond within 30 days.
You will then get court forms in the post :
This will:
- Explain what you owe, and
- Ask for information about your circumstances
Fill in and return these straight away
You only have a short time to do this
You can defend the claim if you dispute a debt, but get specialist advice before you do this.
The court will issue a County Court judgment (CCJ) telling you how much to pay and when.
If you do not respond to these court forms:
- The court will not understand your situation
- You may have to make payments you cannot afford