CCJ Requested before time for defence passed

francolin

Not sure if this is the correct place to post, so sorry if it isn't. Couldn't find anywhere more appropriate

I recently received a County Court Claim for a debt that has been sold to a third party (the ones making the claim). I'm not in a position to pay it and have been weighing up my options. I acknowledged service on MCOL with an intention to make some sort of defence. The claim was received on 1st Feb. I might have got this wrong, but I thought that the time for a defence is 14 days, plus another 14 if I acknowledge the claim on MCOL. I know it's tight but 28 days have not yet passed (with the addition of the 5 days that are added to the date on the claim ).

Today I got a letter from the Solicitors who are making the claim on behalf of the creditor saying that since they have not had any contact from me for 14 days, they have now requested the court to make a County Court Judgement against me with an order to pay £50 a month. They've included some instructions about if I can't pay it to contact them to make arrangements etc.

Is this right? Aren't they supposed to wait until after at least the amount of time has passed for me to make a defence?

Really don't know what to do. I was going to apply for a DRO. But I was also considering contacting them and offering some sort of small payment instead. My personal circumstances are all over the place at the moment and I was hoping to just buy some more time if anything to sort things out.

Does anyone have any ideas on what I should do next?

WhenIam64

They've included some instructions about if I can't pay it to contact them to make arrangements etc.

There are lots of lawyer "tricks" in the small claims track. It's a bit of a wild west as they try to (quite legally) take advantage of your lack of knowledge.

You actually have 33 days from the date on the top right hand box on the claim form. The case number should start with an F (for 2019). It is 28 days plus 5 for service.

These letters are there to put you off balance. And there are other tricks at the Directions Questionnaire, and Witness Statement stage. The simple rule is always check what the other side's lawyer says as they are only working for their client, despite supposedly being responsible to the court (like bailiffs).

francolin

Thank you WhenIam64.
I'm now just wondering what to do though. My situation is that I have not had a regular income for a few years due to ill health and some other personal issues that I won't get into here.

I think I "qualify" for a DRO. I owe other debts too. But I recently have had some hope of employment. Not guaranteed, but it could well happen. That would make a DRO not a good option.
So I was mulling over whether I should contact them and offer to make payments. And then this letter happened. It wouldn't have been much of a payment. But as I say, it would at least buy me time. Does anyone think that's still a viable option? I really would like to avoid a CCJ.

WhenIam64

You are asking two questions now. The effect of a CCJ is to convert a "non-priority" low-quality debt into a priority debt. If you put in a (reasonable) defence based on the facts or lack of facts, then it delays the potential of a CCJ for about 6 months which is the time it takes to progress through the allocation system. So on balance it is better to offer some payment that you can afford and if they do not accept, then defend and have it kicked into the long grass for 6 months.

Your second question about the DRO requires more information on whether it is appropriate for your circumstances. You could do a SOA here for others to comment on, or you could go to a debt charity/CAB or you can use phone advisors like Stepchange/Payplan.

You should take as much advice as you can before deciding on a DRO or any debt solution.

ToxtethO'Grady

There is a separate part to the claim called an Acknowledgement of Service that has to be completed to give you the extra 14 days...

[*]Acknowledgment of Service (AOS) [FONT=Arial,Arial][FONT=Arial,Arial]– indicates that the defendant intends to file a defence, part admission or contests jurisdiction (the level of court). The AOS also extends the time to do so from 14 to 28 calendar days from the date of service. [/FONT][/FONT]

[FONT=Arial,Arial][FONT=Arial,Arial] [/FONT][/FONT]If that hasn't been completed the judgement can be entered. If you can prove that you have done that you can apply to have the judgement set aside as the correct process has not been followed.


That is a mandatory ground to set aside quote (CPR 13.2) and that you had completed the the acknowledgement of service but judgment was entered before the deadline

WhenIam64

If that hasn't been completed the judgement can be entered.

I acknowledged service on MCOL with an intention to make some sort of defence.

OP has acknowledged. He just has to follow up with a defence within the times required.

If the OP has an agreement to pay, he must chase the creditor for a Notice of Discontinuance (NoD). It is not unknown for creditors to say they accept a deal, then not to send a NoD to the court which results in a default CCJ. You have to follow through with the correct court paperwork.

sourcrates

Hi,


You say you want to avaoid a CCJ , but then talk about a debt releif order, either will seriously effect your credit file for 6 years, you can go along with the court claim, or put in a defense, it dosent really matter, because if you opt for a DRO, then the CCJ cannot be enforced, and the debt is written off at the end of the monotorium period as per your other debts.

I think your priority should be deciding on a suitable course of action to tackle all your debts, and getting it put in motion.

francolin

My hesitance to apply for a DRO is because I am (quite suddenly) hopeful of employment very soon. Although I cannot guarantee it. If I apply for a DRO now(ish) it may become problematic since I might then end up with more than £50 per month after all expenses have been met, which would then put that in jeopardy. So it may be a waste of time and money. That's why I really wanted to persuade them to accept a monthly offer for payment. It would be around £5. That would buy me time. Can I still apply for a DRO if things don't work out as I plan and I do manage to persuade them to accept an offer of payment? Or is that seen as showing preference to a creditor?

fatbelly

I think for now concentrate on putting in a defence within the 28+5 days (from issue date). The letter from (Lowell solicitors?) is a standard one and if you go on to MCOL you will see that your aos is recorded and it is waiting for you to enter a defence.

That should slow things down.

Then post a soa for us to have a look at.

http://www.stoozing.com/calculator/soa.php

WhenIam64

I think for now concentrate on putting in a defence within the 28+5 days (from issue date).

If you owe the money, then it would be an admission rather than a defence with the court to decide the amounts payable monthly depending on your Income and Expenditure as explained on their form. £10 a week in not uncommon. If you can't afford that then you would have to be able to explain that.

Alternatively go back to them and see if they will take less than £10 a week based on your I&E.

So the choice boils down to an informal agreement to pay at a rate you can afford based on your I&E or a court-backed CCJ to pay at a rate you can afford based on your I&E. The latter would include court courts of about £100 and the CCJ would show on your credit file until "satisfied"