What is County Court really like?

Depending on the type of person you are, the thought of going to county court could either be exciting or terrifying.

If you fall behind with your payments and your creditor takes court action against you, remember…

The County Court is not there to punish you

The county court exists not to find you guilty or innocent, but to settle disputes about money – to decide how much (if anything) you owe, and determine the best way for you to repay it.

Most County Court action is carried out through the post

You will receive a claim form telling you how much (according to the creditor) you owe. You can reply by post, whether you decide to:
·         Pay at once
·         Offer to pay over a period of time
·         Agree to pay part of the claim
·         Disagree with the claim (this is likely to result in a hearing)
·         Ask for more time

Court isn’t necessarily what you think

If you can’t pay, or don’t think you should have to, there will be a court hearing. No dock, no jury, no speeches – just you, the judge and the representative of the creditor in a private room. The judge will simply go through the facts of the case and decide whether or not you owe the creditor anything, and how you should pay it.

What happens if I do not pay my Council Tax?

Council tax is a priority bill, which means paying it is even more important than paying your non priority bills (such as credit card or unsecured loans), as the consequences can be much more severe. If you do not pay council tax:
·         You might be visited by bailiffs.
·         Money could be taken straight out of your wages/benefits.
·         A court may grant a Charging Order, which turns your debt into a secured debt (secured against your property). 
·         If the worse comes to the worst the council may begin bankruptcy proceedings – or even have you imprisoned.

Your council will not take you to court as soon as you have missed one council tax payment. They will send you a reminder, and if you can pay then no further action will be taken. If you do not pay, they may ask the magistrates court to grant a liability order. Once a liability order has been granted, the council will be able to pursue enforcement actions.

Talk to the Council

If you are having problems paying your council tax, you should never suffer in silence. It is very important that the council understands you are unable (not unwilling) to pay your council tax bill.

The first thing to do, is to contact the council, tell them about your financial situation and explain how you intend to pay off your council tax arrears. Drawing up a budget that shows your income and expenditure will help you calculate how much you can afford and if necessary prove that you are paying your arrears as fast as you can.

If you contact the council you may find that you are eligible for council tax discount you did not know about. You may get a discount if there is a disabled person living in your home, if there is only one adult living in the property, or if you are on a low income. These are just three examples – to find out more, contact your council. You may even be able to backdate a council tax discount.