N56

MRSJT

Hi All

I am looking for some advice please - hope I have posted in correct place.

I have received an N56 form with regards to a credit card debt for approx £5000. With was an abbey national credit card, the DCA is arrow global and the solicitors acting on behalf of arrow is restons. This debt is over ten years old and in this time I have neither acknowledged or paid anything off the debt.
In the last ten years I have moved home 6/7 times and wasn’t aware that this debt had gone to CCJ, having not received any letters from arrow or restons.
I have had a look at my credit history and can see that the CCJ was applied in 2014. There is a chance that this debt may have been statute barred when the CCJ was applied but I cannot be 100% sure as I do not have financial paperwork dating back that far. I have a number of questions:
This debt was accrued as a single mum working part time - since then I have married and have gone on to have more children and working full time. Do I have to include my husbands income/debt on the N56? Seems unfair that a debt he had nothing to do with becomes his responsibility too.
As I mentioned earlier I haven’t received any communication from arrow or restons before the N56 so have I gone past the point of being able to agree a payment plan with them? Ideally I would like to avoid an attachment of earnings as this will be frowned upon in my work place and likely to affect my employment going forward. I know I can tick for a suspension of attachment but you have to give a good reason - what counts as a good reason?
To add a complication. We are looking at a substantial tax credits overpayment for last year we are waiting for the final total from HMRC. How do I include this on a N56?
Lastly, I am returning to university in sept part time which means I will see a decrease in my wages. How do I include this in an N56?
With regards to the debt being statute barred - please can somebody give me any info on going about finding out this information and how I can get the judgement overturned?
Any information would be very much appreciated!
Thank you so much
Jo

sourcrates

Hi,

Section 10 on the N56 allows you to apply for a suspended order, where you make an offer of payment to the court without having the attachment of earnings order made against you.

You just include your income in the budget, as for the tax credits, I would add an estimated figure to your budget to cover any repayment you may have to make.

As regards the statute barred angle, you can apply for a set aside application to the court, (form N 244) it will cost £255.00 unless you are on a low income then you may get remission on the fee (form EX 160).

To be successful in the set aside, you are under no obligation to prove it was statute barred, your creditor must prove it is not.

MRSJT

Thank you for your response

Can you clarify when I need to apply to the courts for the set aside? Should I do it straightaway and send it in with the N56? I don’t want to start paying the debt and then it’s seen me as acknowledging it so I can’t apply for the set aside?
Also, is there a template letter that I can send to the DCA and solicitors to say that I think it’s statue barred?

Thank you

National_Debtline

Hi MRSJT and welcome to MSE,


Unfortunately, it has gone past the point of disputing/ negotiating this with the DCA or solicitors, you will have to deal with it all through the court at this stage.


Please be aware that county court claim forms are only sent to the last known UK address, so if you moved and did not inform them of the new address details, that is most likely why you missed the paperwork about the original CCJ. You can consider applying to suspend the attachment of earnings order request, pending a set aside application, but you will need to act quickly. You must return the N56 within 8 days of service - failure to do this can be deemed as an offence and it can escalate to a risk of imprisonment (it is considered contempt of court).


If you apply to set aside in the county court, you need legal advice first. You also need to be aware that if you make a set aside application and are unsuccessful the debt can increase through legal costs of the other side - so I am afraid it is not a guarantee of success. The court will normally assess how long it has taken you to file this application (were you prompt), why you didn't respond to the original claim forms and do you have a realistic prospect of a defence. You need legal advice to discuss what the court may expect you to provide as evidence.


You will need to complete the budget whether you request a suspension of the attachment of earnings order or not. You can do a sole budget plan and you can include an estimate of the priority debts you need to deal with (the tax credit overpayment). If an attachment of earnings order is put in place (for one reason or another) it will be based on your current situation, and if you need to apply to vary that later, I am afraid there is a charge for this (£255).


Laura
@natdebtline