What is a County Court Claim Form?
A County Court Claim Form is issued because
the lender has asked the court to enforce payment. If you receive
a Claim form in the post don't panic!
The form issued by the court is designed to
establish how much you can afford to pay the creditor towards the
arrears. You are asked to complete an income and expenditure form
and also to provide details of your other debts. The courts are
interested in looking at what you can afford.
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Completing the
form
Complete the
income and expenditure form to
work out how much you can afford to pay your creditors each month
after you have paid for essential living costs (i.e. your surplus
income).
When you have calculated how much you have
left at the end of each month, before making payments to your
lenders (creditors), split that amount between each creditor on a
pro rata basis. This is done using the following
calculation:
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SURPLUS INCOME divided by
TOTAL OF ALL DEBTS
multiplied by AMOUNT OWED TO EACH INDIVIDUAL CREDITOR
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Example:
Debt 1 £1,750
Debt 2 £2,400
Debt 3 £2,000
Total Debt £6,150
Total Surplus £95 per
month
Payment to Debt 1
95 / 6,150 x 1750 = £27.03 per
month
Payment to Debt 2
95 / 6,150 x 2400 = £37.07 per
month
Payment to Debt 3
95 / 6150 x 2000 = £30.89 per
month
Once you have calculated how
much you owe to the creditor that has issued the Claim, that is
the amount you should offer through the court.
The Claim should provide a
postal address for you to return the completed form. It will also
state the date by which you should do this.
If you are in any doubt as to
how to complete the form contact your local Citizens Advice
Bureau. You may also be able to find information and a sample
form at
www.courtservice.gov.uk
You will not have to attend
court. Instead you will receive details of the Judgment made
against you by post. This will state the amount that you are to
pay to that creditor each month.
If you feel you are unable to
pay this amount you can apply for a Variation Order.
For more information go to our
section on County Court Judgments.
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For more information please
contact us on 0800 074 6918 or email us at:
info@insolvencyhelpline.co.uk.
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