Reducing payments or suspending a Bailiff's Warrant on a County Court Judgment

Download Factsheet (PDF / 87Kb)
PDF download requires the Adobe Acrobat Reader - get it HERE

1. When do I need to make this kind of application?
2. Applying to reduce an instalment order
3. Applying to suspend a Warrant of Execution
4. If you have already let the bailiff into your home
5. What if there are no goods to take?
6. Goods on Hire Purchase/Conditional Sale
7. How to apply to suspend the Warrant of Execution
8. What happens next?

When do I need to make this kind of application?

• If the county court has already ordered you to pay a set amount each month on a credit debt and you cannot afford the amount set.

OR

• If the county court has informed you that a creditor has issued a 'Warrant of Execution' or you have been visited by a county court bailiff.

Some courts will make you pay two sets of fees if you want to suspend a warrant and reduce instalments. This should not happen. Complain to the court manager or phone us on 0800 074 6918 for advice.

Applying to reduce an instalment order

• Use the "Dealing with your Debts" pack to work out offers of repayment on all your credit debts. If any of your creditors have already taken court action, the amount you have been ordered to pay may be more than the amount you have worked out you can afford.
• You will need to apply for a reduction of the instalment order. This application must be made on court form N245 which is available from your local county court. See the sample application form attached.

From January 2006 you will have to pay a £35.00 fee to the court when you make your application. If you are on a low income or certain benefits you may not have to pay the fee. See the section on fees at the end of this factsheet.

• You could try negotiating directly with the creditor to see if they will accept reduced payments without going back to court. Send them your personal budget. This could save you paying the fee to the court.

Applying to suspend a Warrant of Execution

If you do not make payments as ordered by the court the creditor may issue a 'Warrant of Execution' This warrant authorises a county court bailiff to take away your possessions and have them sold at auction. Usually, you will have some warning such as note from the bailiffs telling you they intend to visit. It is usually quite easy to stop this happening.

YOU DON'T HAVE TO LET THE BAILIFF IN.
The bailiffs are not allowed to force their way into your home unless you have let them in on a previous visit.

If you have already let the bailiff into your home

There are some goods that the bailiff cannot take: e.g. tools, books, vehicles and equipment necessary for use personally in employment. Other exemptions include clothing, bedding, furniture, household equipment and provisions for "basic domestic needs". The bailiff won't usually take away goods on a first visit. They are likely to ask you to sign a "Walking Possession Agreement". This allows you to keep using the items listed on the agreement, but means that the bailiff can return and take the goods by breaking in if necessary.

Even if you have signed a Walking Possession Agreement you can still apply to the court for the warrant to be suspended.

What if there are no goods to take?

When the bailiffs come into your home they may decide that your goods are not worth enough to cover their costs of coming out with a van and removing and selling them. If this is the case the bailiff will return the warrant to court with a note to say there are goods of insufficient value. The bailiffs should not take any further action.

Goods on Hire Purchase/Conditional Sale

The bailiff should not take goods that belong to other people. You should explain that the goods do not belong to you. Show a receipt or credit agreement as proof. They can take goods that are jointly owned by you and your partner but they are only entitled to your share of the goods.

Most bailiffs will not take goods on hire purchase or conditional sale type agreements. They may be able to take goods if they think the goods are worth more than the amount you owe to the hire purchase/conditional sale company.

The bailiff could then sell the goods and keep the difference. This is very unusual and can only happen in certain circumstances. Phone us for advice.

How to apply to suspend the Warrant of Execution

This application must be made on a form N245 which is available from the county court. The court cannot refuse to accept the application just because the bailiff has not yet visited or managed to get in but the bailiff can continue to call round until the court agrees to suspend the warrant. See the sample N245 application form attached.

FILLING IN THE N245 APPLICATION FORM
Use the "Dealing with your Debts" pack to work out your personal budget. Make sure you include all your income and expenses from your personal budget on form N245. If you are a couple it is usually best to include your total household income and expenses. Make sure you have included details of all payments you make on your debts. This will make it clear to the court that you can only afford to pay the amount you have offered. Phone us for advice if you have any difficulties filling in the form.

If you have applied to suspend a Warrant of Execution, the bailiffs will not remove any of your goods before your application has been decided. But they can keep trying to make a list of your saleable goods (a levy), so may keep calling even if you don't let them in.

Fees

There will usually be a fee of £35.00 to pay with your application. If you are on a low income or certain benefits you may not have to pay the fee. See the section on fees at the end of this factsheet.

What happens next?

Send or take your completed N245 application form to the county court that sent the warrant to you. You will have to pay a £35.00 fee to the court when you give them the application unless you are exempt or don't have to pay on grounds of hardship (see section on "Fees"). Try to keep a copy of the completed form for yourself. The court will send a copy of your application form to the creditor.

• If your creditor agrees to your application.

They will notify the court. The court will then send you details of what has been agreed and how to pay.

• If the creditor does not agree to the offer of payment on your application.

The court will work out how much you should pay from the information you have provided on the form.

• If the creditor objects to the warrant of execution being suspended at all.

There will a short hearing for the district judge to decide what to do. You must go along and explain your circumstances in person. Take a copy of your personal budget with you.

• If the court orders you to pay more than you have offered.

If you do not agree with the amount the court orders you to pay you can ask for a hearing to explain your offer to the district judge. You need to use a general application form called an N244 which is available from your local county court and ask for the court to reconsider the offer you have made. There should not be another fee to pay at this stage. You must do this within 14 days of receiving the order to pay. You should go along to the hearing, take a copy of your personal budget with you.

County Court Fees

DO I HAVE TO PAY A FEE FOR AN APPLICATION IN THE COUNTY COURT?
There will usually be a fee to pay with your application. You can ask the court not to pay the fee in some circumstances. The form you will need to fill in is called an EX160 'Application for a fee exemption or remission.' This form needs to go to the court with your main application. If the court agrees your application you will not have to pay the fee. If you pay a fee when you should have been exempt or would have qualified for a remission, then you have six months to apply to the court for a refund.

EXEMPTIONS
If you are on income support or income-based jobseeker's allowance (JSA) you can ask the court for exemption from the fee. You need to give the court proof that you are getting the benefit. You will be exempt if you or your partner are on the guarantee credit element of pension credit.

If you are on working tax credit you will be exempt from the court fee in these circumstances:

if you are also on child tax credit,

or

you receive the disability or severe disability element in your working tax credit,

and in either case

your gross annual income taken into account for working tax credit is £15,460 or less (from 6 April 2006).

You will need to show the court your tax credit award notice to qualify.

If you do not qualify under these rules for an exemption then you can ask for the fee to be remitted or waived by the court. See below.

REMISSIONS
Ask the court for the fee to be remitted (or waived) if it will cause you what the court calls " undue financial hardship". You can use the same EX160 application form. You may be on a low income or a benefit that does not automatically exempt you from paying the fee. Give as much information about your circumstances as you can. Explain your financial situation on the application form and any exceptional circumstances that apply in your case. The court can remit all or part of the fee depending on what they decide you can afford.

Remember: You can always Phone us for advice about any difficulty you are having in dealing with your debts

0800 074 6918

© Copyright National Debtline 1994 (updated May 2006)