Factsheet | How to set aside a judgment in the county court
When will the court agree to set aside a judgment?
The county court rules set out when you can apply to set aside a judgment. For example:
- an order was made against you in your absence, in certain circumstances;
- there may be an error in the judgment;
- you want to put in a defence and did not have the opportunity to do this;
- the proceedings did not follow the court rules.
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Default judgment
You may have a default judgment made against you where there was no hearing and you have not sent back the ‘acknowledgment of service’ form to say you intend to put in a defence. You may also have a default judgment made against you if you have not sent in the reply form asking for time to pay within the time limits.
When must the court set aside the judgment?
The court must set aside the default judgment if you:
- have paid the whole amount owed (including any interest and costs) before the date the creditor entered judgment;
- sent back the acknowledgment of service form within the time limit;
- put in a defence within the time limit; or
- sent in the reply form within the time limit asking for more time to pay.
The court must set aside the judgment in these circumstances, even if you do not have a defence.
There is no time limit for making an application on these grounds.
When is it up to the court to decide?
The court may agree to set aside the default judgment even if you did not send in a reply form within the time limit if:
- the court thinks you have a real chance of a successful defence to the claim; or
- the court thinks there is some other good reason why the judgment should be set aside.
There is no time limit for making an application on these grounds but the court will look at whether you made the application ‘promptly’.
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If you did not deal with the papers or go to a hearing because you were ill, in hospital or away and have a defence then this may be a good reason to set aside a judgment.
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I did not get the court papers
If you did not get the court papers through the post the court will not always agree that this is a good reason to set aside the judgment. The court is allowed to send the papers to your usual or last known address (even if you have moved). If you have given your creditors your new address then they should contact you there.
If they still send the papers to your old address then you may have good reason for the judgment to be set aside.
If you did not get the claim form, you will usually need to show you have a defence or other good reason as well, for the court to set aside the judgment unless:
- you can prove you gave the creditor your new address;
- the claim was not made following the rules, for example, they were sent to the wrong address, lost in the post; or
- the post office returned the claim papers as they were not able to deliver them.
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I missed a court hearing, what can I do?
If you miss a hearing date that has been set by the court and you now have a court judgment or order, you can apply for the judgment to be set aside to allow a new hearing date to be set.
The court may agree to your application if you:
- act promptly in applying to set aside the judgment (usually within 14 days);
- explain that you had a good reason for missing the hearing, and
- would have had a reasonable prospect of success at the hearing.
You will need to give reasons why you did not go to the hearing and explain any delay in your application. The court may not agree an application if they decide you knew action was likely but did not give your creditor a current address. This is complicated. Phone us for advice.
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If the judgment is set aside then all enforcement action will then stop. Enforcement action will not stop automatically just because you have put in the application. It is important that you ask for any enforcement action to be stopped or ‘stayed’ until your application is heard. You should include this request on the N244 application form when you apply for the judgment to be set aside.
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How do I apply?
You need to ask the court for a general application form called an N244. You should fill in the N244 to include the information the court asks for. The following points may help you when filling in the form. If you get stuck, phone us for advice.
- Include the the claim number of the case and details of the creditor or ‘claimant’.
- Question 1: fill in your name here.
- Question 2: you will normally tick the box as the ‘defendant’.
- Question 3: you need to briefly state what order you are asking the court to make and the reasons for your request.
- Question 4: this asks if you have attached a draft of the order you are applying for. We would suggest that you only tick ‘yes’ to this if you have had help from a solicitor or advice agency with drafting the order. Otherwise, leave this up to the court.
- Question 5: this asks you if you want to have the application dealt with at a hearing. Most applications will be dealt with at a hearing.
- Question 6, 7 and 8: it is safer to leave these blank rather than guess how long a hearing will last or what level of judge you need at the hearing.
- Question 9: only fill this in if there is someone you want the court to send a copy of the application to, such as your solicitor.
- Question 10: this appears on the back of the form. You should tick the box saying you are relying on ‘the evidence set out in the box below’. You need to include any evidence you have to support your case, such as proof you have changed address or were out of the country. Any information you have about your possible defence should also be included. You should explain any delay in making the application.
- Sign the statement of truth on the bottom of the form.
- Send the form back to the court and remember to keep a copy.
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A sample application N244 is at the end of this fact sheet.
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Also ask the court to stop any enforcement of the judgment until after the hearing takes place to set the judgment aside.
Even if the case began in a different court, it will be transferred for a hearing in your local county court in private with a district judge.
The court will take into account how quickly you made the application and may want to know the reason for any delay, e.g. you only just found out about the judgment.
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Do I have to pay a fee?
From 4 April 2011 you will have to pay a fee of £80 to the court when you make the application.
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If you are on a low income or certain benefits you may not have to pay the fee. See the section on fees at the end of this fact sheet.
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Court forms
You can find most court forms on-line on the HM Courts and Tribunals Service website. You can fill in application forms on-line and print them off to sign and send to court.- Go to the ‘Justice’ website www.justice.gov.uk.
- Search for ‘court form finder’.
- Click on the ‘court form finder’ link.
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What happens next?
The court may send you a date to go to a court hearing to discuss the reasons for your application with a district judge. The application will be transferred to your local county court for the hearing.
In some circumstances the court can decide to allow your application without the need for a hearing. If this happens, you will hear back from the court that the judgment has been set aside.
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If you agree that you owe the money on the judgment you may just want to pay the whole debt off in instalments you can afford. It may be easier to apply to the court for an instalment order using another form called an N245 rather than going through the process of having the judgment set aside first. You will usually have to pay a £40 fee to make this application.
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We have a fact sheet on ‘Reducing instalments or suspending a warrant in the county court’, which may be of assistance to you. Phone us for a copy.
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What happens to a judgment that is ‘set aside’?
If the judgment is set aside by the court, this means that the proceedings go back to the claim stage and any enforcement action is also cancelled. You have a new opportunity to fill in the reply to the claim form, make an offer of payment or put in any defence or counterclaim.
Having a judgment set aside does not wipe out the proceedings altogether but the details will be removed from the Register of Judgments, Orders and Fines until a new judgment is made.
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If a new judgment is made it will be recorded for six years on your credit reference file. The six years start running from the date of the new judgment.
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Can credit repair companies help me?
You may have heard of companies that offer to clear your credit record with credit reference agencies' to allow you to apply for more credit.
Credit repair companies may try to charge you a fee and often send you an information pack telling you how to clear county court judgments.
From October 2008, credit repair companies must have a consumer credit licence from the Office of Fair Trading. Check if the company has a licence before using their services. From October 2008 onwards, if you have a complaint about something a credit repair company has done, you can ask the Financial Ombudsman Service for help.
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You need to be very careful before paying a fee to a commercial company offering to remove judgments for you. If you apply to the county court to set aside a judgment and do not have real reasons to do so then you could be in trouble with the court.
Also, it is more difficult to persuade the court to agree to do so since new tighter rules came into force in April 1999.
Check this website for information on credit repair companies.
www.ukcreditrepair.co.uk
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If you are not happy with a credit repair company you may be able to complain to the Financial Ombudsman Service on 0845 080 1800
www.financial-ombudsman.org.ukif the complaint relates to events before October 2008 then complain to your trading standards department in your local council or contact Consumer Direct on 0845 404 0506
www.consumerdirect.gov.uk
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We have a fact sheet on ‘Credit reference agencies’, which may be of assistance to you. Phone us for a copy.
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Fees for applications in the county court
Do I have to pay a fee?
In the county court, there will usually be a fee to pay with any application you make. In some circumstances you may not have to pay this fee. The form you will need to fill in is called an EX160 ‘Application for a fee remission’. The document ‘EX160A: Court fees - Do I have to pay them?’ contains the EX160 form and gives guidance on completing it. The EX160 form needs to go to the court with your main application. If the court agrees with your application you will not have to pay the fee or will only have to pay part of the fee. If you pay a fee when you should have qualified for a remission, then you have six months to apply to the court for a refund. You can appeal to the Court Manager if you do not agree with a decision on fees.
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The EX160A document can be found by going to the ‘Justice’ website www.justice.gov.uk and taking the following steps.
- Search for ‘court form finder’.
- Click on the ‘court form finder’ link.
- Enter ‘EX160A’ in the ‘form number’ box.
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The court has very strict rules about the proof you need to give them about your income and benefits. If you are in an emergency and you do not have the money to pay the fee, or any proof of your income, the court may help you but you will have to send the proof later.
Fee remission if you are on benefits
You will not have to pay the fee if you receive:
- Income Support;
- income-based Jobseeker's Allowance (JSA);
- the guarantee credit element of Pension Credit;
- income-related Employment and Support Allowance; or
- Working Tax Credit (if you are not getting Child Tax Credit as well).
You must ask the court for exemption from the fee. You need to give the court proof that you are getting the benefit.
- For Income Support, income-based Jobseeker's Allowance and income-related Employment and Support Allowance this should be a letter or notice that is less than one month old.
- For Working Tax Credit the letter or notice should refer to the current financial year.
- For the guarantee credit element of Pension Credit, the letter or notice should show that your assessed income period covers the current financial year.
Fee remission if you have a low income
You will not have to pay the fee if your gross income (before tax and National Insurance are taken off) falls below a set limit. This limit changes each year. Your income includes pensions, Child Benefit, Child Tax Credit and child maintenance.
Your partner's income is also taken into account as well as the number of children you have. You will need to give the court proof of your income. You need to give the court your Child Benefit notice to prove how many dependant children you have.
| Number of children | Single | Couple |
|---|---|---|
| No children | £13,000 | £18,000 |
| 1 child | £15,930 | £20,930 |
| 2 children | £18,860 | £23,860 |
| 3 children | £21,790 | £26,790 |
| 4 children | £24,720 | £29,720 |
If you have more than four children then you need to add £2,930 for each additional child.
Is there any other reduction I can ask for or do I have to pay the fee in full?
You can also qualify for a reduction in the fee called a ‘part-remission’ by telling the court how much money you have left after paying essential bills such as rent or mortgage, childcare, maintenance and court orders.
There is a set amount allowed for living costs. The court can only take certain items into account. They then work out what they call your ‘disposable monthly income’. If your disposable monthly income is below a set amount (currently £50) then you will not have to pay the fee.
You may only have to pay part of the fee, depending on how the court has worked out your disposable monthly income.
The calculation is complicated and you will need to give the court proof of your income and bills at the time you apply. Ask the court for help or phone us for advice.
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There is a fees section on the HM Courts and Tribunals Service website that may be helpful. You can find it by taking the following steps.
- Go to the website www.justice.gov.uk.
- Search for ‘court fees’.
- Click on the ‘court fees’ link.
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You can always phone us for advice about any difficulty you are having in dealing with your debts.
0808 808 4000
© Copyright National Debtline 1994 (updated November 2011).
Whilst we endeavour to keep the content of our website as up to date as possible, National Debtline cannot be held responsible for any changes in legislation or for developments in caselaw since this information was published.
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