Court judgments: An N245 application to vary a court order does NOT Guarantee suspending enforcement.

[Bailiff Advice]

Given the degree of misunderstanding about an N245 Application (together with inaccurate advice about enforcement of a writ of control by a High Court Enforcement Officer) a debtor is reporting online that her debt has increased by almost £1,000.

 

 

Background:

 

On 2nd December the debtor posted that she had received notification from a High Court Enforcement company that they were enforcing a CCJ. She made clear that she wanted to pay the debt within one month of the date of the judgment (17th November) so as to ensure that her credit rating was not affacted.

 

On receipt of the Notice of Enforcement she contacted the enforcement company to advise that she could not pay immediately and wanted to make an arrangement to pay by the 17th December. As this was outside of the Compliance stage, the enforcement compoany correcrtly advised her that any arrangement would involve a personal visit by the Enforcement Officer and a Stage 1 fee of £190 plus vat would be chargeable.

 

She was advised to file an N245. She was wrongly advised that enforcement would cease.

 

ON 11th December she made a series of desperate posts as she was having trouble completing the N245 and was becoming very anxious as the matter had to be resolved within 6 days (by 17th December) otherwise a record of the judgment would appear on her credit file and remain there for a further six years.

 

On the same day (11th December) she was advised to pay the judgment debt £890 (minus bailiff fees) online to the creditor. She did so. She also file the N245.....and paid a court fee of £50

 

Yesterday, she posted back in desperation. The enforcement officer has once again visited and the debt has substantially risen to £1,928 (Stage 1 and Stage 2 fees have been applied). The enforcement company stated that they had contacted the creditor a few days beforehand and that apparently, their records did not record her direct payment. This has now been amended.

 

National Debt Line have advised her that the enforcement agent is indeed entitled to his fees.

 

The court have not yet received a response from the creditor in relation to her N245 Application (which is about right given the Christmas period).

 

She has now been told to file an N244 in the High Court. The McKenzie Friend has offered to refer her to his ‘solicitor’. She needs to pay another fee of £150 for this. This is in addition to the N244 fee of £155.

[Bailiff Advice]

N245 Applications: What are they?

 

If a defendant is unable to make the payments ordered by the judgment they can submit an application to ‘vary’ the court order. They will need to complete form N245 ‘Application for suspension of a warrant and/or

variation of an order’

. The N245 includes an income and expenditure and an offer of payment.

 

Is there a court fee to file an N245?

 

Yes. There is fee of £50 to file an N245. Depending on the debtors financial circumstances, they may qualify for exemption from court fees. They will need to read Form EX160.

 

What will happen after the N245 has been filed at court?

 

The Court will forwarded a copy of the N245 to the creditor. If they accept the defendant’s offer they do not need to respond. If they do not accept the defendant’s offer they must respond explaining why they do not accept the offer and what instalments (if any) they would be willing to accept. If the response is not received within

16 days

then the court will automatically grant the defendant’s payment proposal.

 

The court will send both the defendant and the creditor a ‘Variation Order’ explaining how the defendant should pay. The Variation Order does not change the amount owed or the date that the judgment was registered.

 

What happens if the creditor objects to the application?

 

The case will be transferred to the defendants local court and a hearing date set. The defendant and creditor will be expected to attend.

 

Is enforcement on 'hold' whilst the creditor considers the payment proposal?

 

No it is not. An N245 is merely an application to 'vary' the court order. If however a warrant had been issued, then the defendant would also be required to apply to have the warrant suspended.

[Andyorch]

£50 to submit the N245 BA....not £155

 

"Is there a court fee to file an N245?

Yes. There is fee of £155 to file an N245. Depending on the debtors financial circumstances, they may qualify for exemption from court fees. They will need to read Form EX160."

 

Is this not already covered here....?

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?454644-What-Form-What-For-Where-does-it-go

 

Thread title amended.

 

Andy

[Bailiff Advice]

£50 to submit the N245 BA....not £155

 

Thank you Andy for spotting this. I was confused with the N244. I have changed my post.

[Bailiff Advice]

 

On receipt of the Notice of Enforcement she contacted the enforcement company to advise that she could not pay immediately and wanted to make an arrangement to pay by the 17th December. As this was outside of the Compliance stage, the enforcement company correcrtly advised her that any arrangement would involve a personal visit by the Enforcement Officer and a Stage 1 fee of £190 plus vat would be chargeable.

 

If only the debtor had been advised properly at this stage she would not be in the dreadful mess that she is now in with the real prospect of the enforcement agent taking control of her goods to recover his fees.

 

With judgments enforced via the High Court, it is the case that unless a debtor pays in full at the compliance stage that the enforcement agent is obliged to visit the debtor in every High Court case, thereby triggering the first stage enforcement fee of £190 plus vat (£235). This is explained in further detail under item 7.3 of the statutory Explanatory Memorandum supporting the Taking Control of Goods (Fees) Regulations 2014.

 

http://www.legislation.gov.uk/uksi/2014/1/pdfs/uksiem_20140001_en.pdf