Debt Claim Series Part 3: I’ve just received a claim form… What do I do?

Being on the receiving end of a claim is not a pleasant experience, but it should not be ignored. These things must be dealt with head-on or you may face serious repercussions for years afterward.

If you do not already have a solicitor we’d advise going to see one immediately (our door is open!).

You may have known already that you were going to have a claim issued against you – this is true where the Claimant has engaged in Pre-Action Correspondence (and if they haven’t we will deal with that later and they should have!) – but sometimes this will happen completely out of the blue.

You must respond to the claim form. There are three ways you can respond:

1/ You can admit the claim. 

This will effectively halt the proceedings before they really get started. If you’ve engaged in Pre-Action correspondence with the other party we wouldn’t expect this position to occur as the claim should have been settled before it was issued.

You can admit to all of the claim or part of the claim. In a claim for money, you can take this as an opportunity to request that a payment plan is instigated allowing you to pay the sum owed in several installments.

2/ You can file a Defence. 

In your Defence, you and your solicitor will go through the Particulars of Claim point by point and mount your defence to the Claim. You can refer to additional evidence to attempt to show that the Claim will not succeed if it is not discontinued.

By filing your Defence you are demanding that the Claimant prove their case against you. You will not be given an opportunity to Defend this claim later, outside of very exceptional circumstances unless your Defence is filed on time.

3/ You can file an Acknowledgment of Service. 

This lets the other side that you intend to Defend the claim but you need a bit more time to file your Defence.

How long do I have to respond to the claim?

If you intend to defend the claim then you need to file either your Defence of an Acknowledgment of Service with the court within 14 days of the date of issue. The date of issue will be printed on the front of the Claim Form.

If your Defence won’t be ready within 14 days you can file an Acknowledgement of Service instead. This will give you an additional 14 days (making 28 in total) in which to file your Defence.

What happens if I don’t manage to respond within 14 days or I don’t file my Defence?

If you fail to file a response before the time limit expires the Claimant will be at liberty to apply for Judgment in Default against you.

A Judgment is Default is granted when the Defendant, you – in this example, do not file and serve a Defence. It is granted on the belief that, as no Defence has been filed there is no defence to the claim – tantamount to admitting the claim. The Claimant now has a CCJ against you and you have a CCJ on the system. This must be avoided at all costs.

How will this Judgment in Default affect me?

A Default Judgment is a type of County Court Judgment (commonly referred to as a CCJ) and shows that the Court has found that you owe a certain amount of money to the claimant. They will be able to enforce this Judgment – which may include sending bailiffs to your property to recover the sum owed.

In addition to this the CCJ will remain on your credit file for 6 years – even if you eventually pay the sum owed (unless you pay it within one month – more about this in a later article!) which will affect your credit rating and possibly make it more difficult for you to secure credit or buy a house.

Timing is key then?

Correct. Time is of the essence when you are named as a Defendant in a claim. Drafting a solid and correct Defence takes time and you should raise this with us at the earliest opportunity.

Conclusion

If someone issues a claim against you then don’t panic! There is a procedure in place for this eventuality and we can guide you through it. It is important to review your involvement in the Claim and determine whether you want to file a Defence or admit the claim against you.

Remember that you only have 14 days from the date of the Claim’s issue to file a response – don’t miss that deadline!

The next article will discuss the Court’s management of the Claim and what you can expect in terms of a timeline and directions.

Contact us

Have you been served with a debt claim by the court? Are you owed money either as a debt or having lent money and want to claim it back? If so, this briefing note series is designed to assist you explaining the process of a simple small track debt claim in brief and also the options you might have.

It is not to be deemed legal advice and the only way to ensure you have correct advice relevant to you claim is to contact us to assist. Contact Hamed Ovaisi on hovaisi@solegal.co.uk or 01323 407555 at any time to discuss your matter.