Reducing payments or suspending a Bailiff s Warrant on a County Court Judgment
Below is a MRR and PLR article in category Finance -> subcategory Other.
How to Reduce Payments or Suspend a Bailiff’s Warrant on a County Court Judgment
Overview
When debtors fail to comply with a County Court Judgment (CCJ), they may need to reduce payments or suspend a bailiff's warrant. This guide explains the process, provides tips on negotiating with creditors, and outlines the necessary applications.
When to Apply
If a County Court has ordered you to pay a sum you can't afford, or if your creditor has issued a "Warrant of Execution," you need to take action. This involves legal applications that might incur fees, but report any wrongful charges immediately.
Reducing an Installment Order
After court action, debt may become unmanageable. You can apply to reduce payments via an N245 form at your local County Court for a £30 fee, though certain circumstances like low income can waive this fee. Alternatively, negotiate directly with your creditor to save time and money.
Suspending a Warrant of Execution
A "Warrant of Execution" lets bailiffs enter your home to collect possessions for auction. However, you don't have to let them in. Denying entry can help you manage the situation.
If You've Allowed Entry
If a bailiff has already entered your home, they can return. Protect your essential items like clothing and tools of trade, as these cannot be taken. On the first visit, bailiffs typically list items and might not remove them immediately. You can still apply for a warrant suspension to safeguard your belongings.
When No Goods Are Available
If your possessions aren’t valuable enough for their costs, bailiffs will return the warrant to the court without taking further action.
Hire Purchase or Conditional Sale Items
Bailiffs can only take items you own or co-own. Protect items on hire purchase by keeping documentation handy. Though rare, bailiffs might seize these if they believe the resale value covers the debt.
How to Apply for Warrant Suspension
Use form N245 to apply for a suspension, regardless of bailiff activity. Ensure your personal budget is accurately documented to show the court what you can afford.
Completing the N245 Form
Provide detailed financial information on the N245 form to persuade the court about the payment terms you can handle. Bailiffs cannot seize items while your application is being processed, though they may still visit.
Fees
A £30 fee usually applies to suspend a warrant, but low-income applicants may receive a waiver.
Next Steps
Submit the N245 form to the County Court, with the necessary fees. Your creditor will review and ideally agree to new terms. If they disagree, the court decides based on the provided information. Disputes lead to a hearing with a District Judge, where you can explain your case.
Disagreeing with Court Terms
If you object to the court's terms, request a hearing with an N244 form within 14 days. No additional fees are required, and bringing your budget can support your claim.
County Court Fees
Application Fees
Typically, a £30 fee applies, but exemptions exist. Apply for a fee waiver using the EX160 form alongside your main application. Refunds are available if exemptions are granted post-payment.
Who Qualifies for Exemptions
Applicants on income support or Job Seekers' Allowance (JSA) may qualify, as do those receiving certain tax credits with income under £14,600. Present relevant documentation for exemptions.
Remissions
If paying fees causes undue hardship, the court may remit them. Submit an EX160 form with supporting documents detailing your financial situation.
By understanding and engaging with these processes, you can better manage your financial obligations and protect your assets.
You can find the original non-AI version of this article here: Reducing payments or suspending a Bailiff s Warrant on a County Court Judgment.
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