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When Debt Collection Fails

We obviously try very hard to collect the money you are owed, but when we can’t then Court action might be the only route. The process for making a claim is very straight forward and can be done online. I have outlined the process below.

Your claim is made by you using www.moneyclaim.gov.uk/web/mcol/welcome

The defendant then has to complete the Claim Form, they only have 14 days to reply.

Their options include:

Admitting the claim if they agree they owe the money you are claiming. They will also need to fill in a form giving the Court details of their financial circumstances and they will be asked to make an offer of payment

Filing a defence, if they disagree with the amount they owe.

Submitting an acknowledgement of service if they intend to defend the claim but need longer than 14 days to prepare a defence

 

If you receive judgment

The court can issue:

a judgment by instalments, where the debt is paid off over time, or

a judgment forthwith, where the whole amount  owed is due immediately

 

If they have admitted the claim and made a monthly offer of payment, it is likely that they will receive a judgment by instalments.

The monthly repayment rate will be set by the court using the information provided in the admission form.

If they don’t respond to the claim the Court can’t take their circumstances into account, they will enter a judgment against them.This is called a judgment in default.

They can ask the Court to look at this again if the repayments are more than they can reasonably afford. This is called a redetermination.

If they don’t keep to the terms of a CCJ

If you receive a CCJ in your favour and they don’t keep to the terms it sets out, you can ask the court to enforce the debt.

There are several ways that they can do this:

Bailiff action

Attachment of earnings

Charging order

 

Bailiff action

You apply to the county court for a bailiff to collect the debt. If the court grants permission, it will issue a Warrant of Execution.

This gives the bailiff the power to visit the home or business to collect the money you are owed, or to seize goods that could be sold to repay the debt.

Attachment of earnings

An Attachment of Earnings Order asks for the money owed to be deducted by the employer from their wages.

Charging order

If they own a property (either with a mortgage or outright) you can ask for a Charging Order to be secured on it.