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One step you can take is to ask the court for a 'time order'. The court
can reduce or even stop the interest that is adding up on the money you owe, and
reduce the instalments you pay to a level you can afford. But you have to
show the court that you have real difficulty making the payments. You may
also have to show that you would be able to pay the full instalments again at a
later time.
If you get a time order, the default will still be listed on your credit
reference file, so you may have trouble getting credit in the future. If
you do want to apply for a time order, you must first write to the creditor
explaining what you want, how much you think you can afford to pay and over what
time period. If the creditor refuses your offer, you can go ahead and
apply to the county court for the time order, and it will decide whether what
you have offered to pay is reasonable.
Alternatively, you can simply go ahead and pay the creditor what you've
offered. If it still doesn't think that what you're paying is enough, it
has the option of taking you to court. You can apply for a time order at
this point. The advantage of this route is that it would be the creditor,
not you, who has to pay the court fee.
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last updated
16/08/07
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