If you can’t come to an agreement with your creditors to repay a debt, they can take court action. This is usually a last resort.
If a creditor decides to start court action, they will issue a claim in the County Court. For most types of unsecured consumer debt, such as credit cards, overdrafts or payday loans, they can only do this after your account has defaulted.
You’ll receive some court forms in the post explaining what you owe and asking for information about your circumstances. You must fill these in and return them straight away – you only have a short time to do this.
The court will issue a County Court judgment (CCJ) telling you how much to pay and when.
If you don’t respond to the claim form, the court won’t take your situation into account and you may be told to pay instalments you can’t afford.