Income and expenses

volvo240

Hi, my partner has an old dent which has gone to court. My partner has mental health issues and is under a community team for support. She gets PIP only and is entitled to ESA contribution's only.

As the debt has gone to court,she now has to fill in a income and expenses form.

My question is as the debt is in her name only, do we have to put my income as well?
How much should be allowed for expenses?
Thanks

National_Debtline

Hi volvo240 and welcome to MSE,


If your partner has received claim forms (with an admission, defence and acknowledgement of service) and she does not wish to defend she can do the admission form. This can be done based on her sole income and expenses. She should list her expenses honestly and then make a clear offer to pay in box 11.

However, you mention this is an old debt, so you should take further advice about whether or not this may be statute barred. Under the Limitations Act 1980 it states that if there has been a 6 year block of time since the debt fell due, with no written acknowledgement or payment to the debt and no county court action started, then the debt may no longer be enforceable through the county court and becomes known as Statute Barred. If you think this applies to the debt in question, then your partner should be filing the defence form instead.


She will have 14 days to reply, plus 5 days for postage if they are from Northampton County Court. If she needs longer to file a defence she can file the acknowledgement of service form to get another 14 days to complete the defence form.


Laura
@natdebtline

volvo240

Hi, thanks for the reply and welcome,

So the debt was nearly at the six year mark, when the DCA took the debt to court, the defence was put in and because they did not get their defence in time a stay was put in place, this was last year. So fast forward to this year and the DCA changed solicitor to in house (the DCA is Capquest working under the name of Arrow Global) and went back to court. and my partner sent a letter stating that she would not attend due to her mental health (anxiety and depression as well as agoraphobia and personality disorder traits, she does not leave the house without me). The letter was from her and not her community team, so that might have helped. But the judge did not appear to take that into account and still wanted her to appear before them.

So, a judgement was made that she has to pay the full amount. After three calls to CapQuest over three weeks, they sent out an income and expenditure form along with a DMMHEF and put the account on hold for 30 days before further action.

As my partner does not work and has not for over 20 years due to her mental health, I am the only wage earner and she only gets PIP and contribution based ESA, so total income of 229 per month.

So, do we put my income as well or just her income? And if we do jut put her income, do we put all our outgoings ? As there will be a very large shortfall.

Many thanks

National_Debtline

Hello again,


If the judgement has already been entered, then the deadlines I have explained in my first message are not applicable (sorry for the misunderstanding).


On the budget form, you can do a sole budget, where you only show your partners income, and only what she contributes to the household bills. However, most creditors will request a joint budget sheet, to ensure you are sharing the bills fairly. In this situation, you would list all of the income, and all the expenses. The money remaining should be shared proportionally between you both (and if you are the main earner, you will have more of the surplus).


Based on the overall situation, it sounds like it would be beneficial to speak to one of the free debt charities to discuss your partners options in more detail. Your partner may be able to look at a Debt Relief Order, to get the judgement (and any other debts) written off. And in the meantime she should apply, through the court, to vary the judgement to prevent possible enforcement.


As your partner is vulnerable, it would be advisable to vary the judgement at court, rather than informally with the creditor, to prevent a risk of bailiffs. You would get 7 days warning before a bailiff visit, and they can only enter through open/ unlocked access or by invitation. So, lock the doors, don't let them in, and hide anything valuable outside until you are able to vary or discuss other options with a debt charity.


Laura
@natdebtline

volvo240

OK, so how do we go about varying the judgement?

Can we speak to one of the free debt advisor's on here?

National_Debtline

Hello again,


To vary a CCJ you will need an N245 form. This is supposed to cost £50 to submit, but your partner may get a reduction on this due to their financial situation (but this is at the courts discretion). She would do a budget and make an offer to repay monthly. Therefore shouldn't be a hearing for this, but do make sure the forms are sent recorded delivery and keep a copy.


If she maintains the new payment terms, then no court enforcement (such as bailiffs) would be possible. However, the CCJ will remain on her credit file for 6 years.


In terms of options, it would be best to contact one of the free debt charities directly, as they will need to ask more questions (that would likely be too much for here). You are welcome to post a SOA - http://www.stoozing.com/calculator/soa.php and other posters can help and discuss the different options. Good luck,


Laura
@natdebtline