Person against whom default judgment or CCJ in small claim and money claim was issued may ask the court to pay a debt by installments. It let debtors to repay a debt by small amount which he or she could afford.
If debt judgment was issued against you it is worth to make all steps that some schedule of repayments will be agreed before judgment creditor applies for enforcement judgment and ask a bailiff to visit your house or freeze bank account.
If claimant get a warrant of control or an attachment of earning order then cost and bailiff fee would be added to the debt unless it is a small claim.
Procedure of requesting court to order a debt repayment in installments is called varied order. Under CPR 40.9 debtor may ask a court to pay a debt in later or earlier date, by installments or change size of installments, to pay a debt in one sum if it was set up an installments.
Apply for suspension a warrant or reduction of installments
Debtor should complete and file court form N245 to suspend a warrant or reduce installments payments. Debtor has to provide all financial details such as employment status, earnings, debts, income, expenses (expenditure sheet). Cost of application N245 is £50 (check court fee prior).
Creditor will get the copy of this application. If the judgment creditor doesn’t agree with payment he or she may object an installments within 14 day by writing a letter to the court. New payment or installemtns must be suggested in this objection.
Debtor may use court form N245 even if he wants to suspend a warrant of control as soon as he or she get a notice. Bailiff will give 7 day notice about his visit and warrant of control.
If debtor has another CCJ and summary debt is less then £5,000 then he or she may apply for administration order by filing form N92 which allow to pay affordable amount.