Applying for DRO after County Court Claim

francolin
francolin Posts: 26 Forumite
edited 9 February 2019 at 5:31AM in IVA & DRO
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.

Comments

  • Craig1981
    Craig1981 Posts: 769 Forumite
    First Anniversary
    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
    fatbelly Posts: 20,457 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    edited 9 February 2019 at 10:58AM
    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
    naive_investor Posts: 23 Forumite
    First Post First Anniversary Combo Breaker
    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
    fatbelly Posts: 20,457 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    The key is to slow the ccj down as much as possible.

    And speed the DRO as much as possible.
  • sourcrates
    sourcrates Posts: 28,848 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    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.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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