Dealing with your non-priority debts

If my creditors take court action, what are the advantages?

See our fact sheet:

County court - interest charges.

  • The court will stop interest being charged on most ordinary credit agreements. This means that the amount you owe cannot increase. Some creditors may tell you they can charge interest on a debt before and after judgment. If this happens to you, contact us for advice.
  • In most cases, the court is likely to let you pay a monthly amount which you can afford. But it can only do this if you explain your income, outgoings and other debts on the reply form to the county-court claim.
  • Usually you won't have to go to the court for a hearing. Most of the procedure is done through the post.

If my creditors take court action, what are the disadvantages?

  • Court costs are added on to your debt, although creditors cannot add on what they want. Court costs will be added on a sliding scale depending on the amount of money you owe.
  • Details of judgments are recorded by Trust Online and are available to credit reference agencies. This may make it difficult for you to get credit in the future. If you pay off your county-court judgment within one month, you can ask to have the entry removed from the register.

Can I get credit again?

  • If you do not pay the monthly amount which the court orders, or the court orders you to pay the whole amount straightaway, the creditor may take further action against you. So make sure you pay your monthly payments or apply for them to be reduced if you cannot afford the first amount that the court fixed.

Reducing payments on court orders