debt admitted - derisory offer to pay

[islandgirl]

The person who owes me money has admitted the debt to the small claims court but offers a derisory amount per month (less than £10 - will take 45 years or more to pay off the debt). Online you can only choose "I accept the offer to pay" or "No offer has been made". I have spoken to the court and I now have to write in and a Judge will consider. Has this happened to anyone else? What was the result?

[Borat]

Was debt advisor for a while so only been on the other end but....

Is the offer backed up by a financial statement?? Obviously judge cannot make an order that would leave debtor without essentials... BBA (british banking association) have a guide for reasonable amounts.

Once you've got a CCJ you could look at other ways to enforce the judgement if they have employment or assets??

[islandgirl]

Hi Borat thanks for the reply. On his admission form his outgoings (totally surprisingly)meet to the penny his income. Am I right in thinking that if the judge accepts his offer of a payment (£9/month) which is so low as to be worthless (45 years to clear the debt....) I cannot take any further action unless he defaults on this £9/month? I also know he has other income which he has not declared on the form. He does not work. He is also expecting money from other sources (eg selling property). However if the judge accepts the £9 he could be sitting with £80,000 from a house sale, paying me my £9 and not clearing the original debt?

[Esio Trot]

BBA (british banking association) have a guide for reasonable amounts.

This is most interesting. Do you have a link to this guide?

[Borat]

This is most interesting. Do you have a link to this guide?

Can't find it online. I only had a paper copy fixed on the inside cover of my debt advice handbook!! I'll see if I can find one anywhere else......

[Borat]

Hi Borat thanks for the reply. On his admission form his outgoings (totally surprisingly)meet to the penny his income. Am I right in thinking that if the judge accepts his offer of a payment (£9/month) which is so low as to be worthless (45 years to clear the debt....) I cannot take any further action unless he defaults on this £9/month? I also know he has other income which he has not declared on the form. He does not work. He is also expecting money from other sources (eg selling property). However if the judge accepts the £9 he could be sitting with £80,000 from a house sale, paying me my £9 and not clearing the original debt?

IIRC.... you have to follow the 'Pre action Protocol' think this may be available from the FSA website... if not CAB have comprehensive information on their advice system. If the debtor has considerable assets then it would not be unreasonable to reject his offer of payment to follow other enforcement methods including charging order on the property. This is all other court action AFTER you have the CCJ. After you get CCJ if you have any reason to doubt his honesty you can apply for a 'order to obtain information' which used to be called a 'oral examination' in which a court official takes down details of his means and assets. Lying or not turning up is contempt of court and can be arrested.

[Borat]

Additionally.... most creditors accept an offer of payment for any lenth of time between 6 months and 2 years and do 'reviews' of the debtors circs... if your man getting a load of cash it might be good idea to do a review then if you go down the route of accepting his offer.

[islandgirl]

many thanks Borat - I would gladly accept payment over 2 years but I think payment over 45 years is a bit excessive! Your help is much appreciated.

[Esio Trot]

IIRC.... you have to follow the 'Pre action Protocol' think this may be available from the FSA website...

The one I follow is on the Justice Department (http://www.justice.gov.uk/publications/cp2207.htm) site. I think this is the one you mean.

The Pre-Action Protocol letter is here. (http://www.justice.gov.uk/docs/cp2207-b.pdf)

It is not mandatory to follow this, but I had one debtor trying to get my claim thrown out because I didn't follow this guidance.

Fortunately, I followed the spirit of the law in my letters before making a claim so I got judgement. To make sure though, I now always issue the PAP letter before taking legal action and keep a copy in the file.

[Borat]

You are completely correct.... replace 'have to' with 'should'! It does stop these little problems in court us nasty advocates bring up tho if you do follow guidelines to the letter :)

[jta]

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[islandgirl]

Just picked up my old thread again and wondered what the above post meant? Can you help JTA? Had you been attacked by a violent tin of pink luncheon meat?