Being taken to court - what happens?

Arfhurdaly

One of my creditors has threatened to take me to court for unpaid payment.

What actually happens? Does the judge look at your income/expenditure and see how much you can pay them? Do I have to attend?

Help.....

gonzo127

hi, well first thing first this as it stands it is just a threat, ok without knowing more details i am can not say it is a empty threat however a lot of companies say this and do not want to follow through as it is used as a scare tactic in a lot of cases.

The best thing to do if you can is to explain your situation in a bit more detail and include things such as a SOA (Satement of Affairs) http://www.makesenseofcards.com/soacalc.html so we can advise you on any areas in yoru life where you could save some money

now on to a generic explaination of 'the threat', IF they do take you to court it will be to gain either a CCJ against you or a charging order on your house.

a charging order basically turns your unsecured debt in to a secured debt against your house, so that if you stop paying etc they can then begin reposession proceedures

a CCJ is a court ordered repayment plan where a judge will go through your statement of affairs and decide how much you can afford to pay to the company, this then becomes the ruling and if you default on this they can then send around the court appointed bailiffs (who can seize assets)

oh and a quick edit, if it does go to court i would ALWAYS suggest you attend as it allows you to put your case forward and shows willing on your behalf to deal with the problems you have found yourself in

Arfhurdaly

Very good advice. Thanks.

One last thing, how does the judge work out how much you can repay? Do you have provide tax statements/payslips/bank statements? or does he take your SOC as word.

gonzo127

it would all depend on the judge really, - if it gets as far as court you will be sent the details through the post telling you what you need to send so as long as you keep an eye on your mail and read it you will be prepared

another thing to think about is, if you are currently struggling with debt is to contact one of the free debt charities such as CCCS, CAB, National Debt Line or Payplan, these people will try and help you and give professional advice for FREE they will also suggest the best possible solution for your situation - this will also be a good step if you do get taken to court as it shows you have taken some proper advice to try and deal with your debt

SouthCoast

From CAB:


What happens if you are taken to court for money you owe

http://www.adviceguide.org.uk/index/d_what_happens_if_you_are_taken_to_court_for_money_you_owe.pdf