Applying for DRO after County Court Claim

francolin

In some trouble. Owed money on cards. Debts sold to third parties. One of them has made a County Court Claim against me. I can't pay it. I have very little (virtually nil) monthly income currently. That doesn't look like it's going to change anytime soon.
I had been reading up about Debt Relief Orders before this even happened and really feel that it's the only realistic option left.

My question, is can I still apply if a County Court Claim has been made (not a judgement, the initial claim that you get sent through the post)? If I get it done quickly enough, can this stop any action that the court may otherwise take (CCJ, order to pay)? If I can apply and it's granted, can the claimant still ask for legal fees for making a claim later on regardless of the DRO?

Regarding fees, I was intending to challenge them anyway. Don't know if this would work, but I see the legal fees as a business cost incurred by the creditor for using a third party to file a claim. Is this valid? Don't know about the court fee. I tried ringing debtline all day yesterday but cannot get through.

Craig1981

a ccj can be included in a DRO, but it depends on what it was for in the first place.

some debts are not included in a DRO:
Criminal fines
Student loans
Child Maintenance Service arrears (or CSA)
TV licence arrears
Social Fund loans
Damages for personal injury ordered by a court

try stepchange, CAB or Payplan as well to see best iptions and advice for your situation

fatbelly

A ccj does not affect whether this is a qualifying debt for a DRO. Sometimes the increased balance can cause a problem if you were close to the 20k limit.

Provided you meet the basic criteria:

• Must not be a homeowner,

• Debts less than £20,000,

• Can have a car worth up to £1000,

• No other assets of more than £1000,

• Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),

• Cannot have had a DRO in last 6 years.

you'll be OK.

Now, what to do about the claim? At the least, go online and acknowledge service. I have a client who has just had a claim and we'll be getting a DRO within the next month, so we'll enter that as a defence when we get confirmation.

You won't get your DRO through in that time so you may as well engage with the process and put in an actual defence, then just let them know about the DRO when you get it.

The best guidance on how to deal with a court claim is on the right hand side of this page:

https://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues/received-a-court-claim?105-Received-a-Court-Claim=

Regarding the fees you just put the whole balance in the DRO

naive_investor

I am helping someone in a similar situation and think a DRO may be the way to go.


I expect the county court case to go against my friend. What happens then. Does the judge ask how you are going to pay the debt it then?


Can you ask for time to decide and then if necessary apply for the DRO?:

fatbelly

The key is to slow the ccj down as much as possible.

And speed the DRO as much as possible.

sourcrates

naive_investor wrote: »

I am helping someone in a similar situation and think a DRO may be the way to go.


I expect the county court case to go against my friend. What happens then. Does the judge ask how you are going to pay the debt it then?


Can you ask for time to decide and then if necessary apply for the DRO?:

Doesn’t work like that, if judgement goes against your friend, nothing will happen that quickly, you don’t physically attend court, normally they will be informed by post, just get them to get on and apply for the DRO.

Fatbelly is right, delay one, expedite the other, as much as possible.