County Court Judgments are entered by the Register of Judgments and it will remain on the debtor’s credit record for 6 years from the date of Judgment. Judgments can have a detrimental effect on the debtor’s credit and can affect their ability to get a mortgage, credit card or bank account.
There are two types of Judgment that can be requested. Judgment in Default can be requested by a Claimant if they do not receive a response from the debtor to the claim. Judgment can be requested online or via form N225 to the County Court Money Claims Centre depending on the method used when issuing the claim. Daily interest from the date of issue can be added to the Request for Judgment if interest was originally claimed for.
If the debtor admits the amount in full, a part admission is accepted, or instalments are agreed Judgment on Admission can be entered using the same format.
If the Judgment amount is paid in full within one month the debtor can apply to have the Judgment removed from their records by writing to the Court with proof of payment. If it is paid in full after the one-month period, the debtor can request that the Judgment be marked as ‘satisfied’ to show that this has been paid.
Once a Judgment has been entered a debtor can apply to have this set aside if they believe they do not owe the debt or Judgment should not have been entered. This is common where people have moved address or have been away and have not received the claim form.
A Judgment will be set aside if:
- The claim has been incorrectly served on the debtor i.e. an incorrect address has been used;
- An Acknowledgement of Service or defence was filed or the whole of the claim was satisfied before Judgment was entered;
- The Defendant has a real prospect of successfully defending the claim;
- It appears to the Court there is some good reason why the Judgment should be set aside; or
- The Court considers that the debtor should be allowed to defend the claim.
When considering whether the Judgment should be set aside the Court will look at the promptness of the debtor in making the application. Within their application a debtor must show that they have a case with a real prospect of success and explain why no response was made to the original claim.
Unless it is agreed between the parties that the Judgment be set aside, the application will proceed to a hearing.
A debtor may also apply to the Court to vary the Judgment. If Judgment in Default is made and the whole amount is payable immediately a debtor can apply to vary this to be payable by instalments or can vary the instalment amount stated within a Judgment on Admission.
Once Judgment has been received a Claimant can proceed with enforcement action; this action can be brought within 6 years of the date of Judgment. In some circumstances a Judgment can be enforced beyond the 6 years limitation period however, this can only achieve with permission of the Court. Forms of enforcement will be discussed in future articles.
Amy Carlton is a Debt Recovery Manager at Sintons. To speak to Amy about any debt-related matter, contact her on 0191 226 7878 or amy.carlton@sintons.co.uk
