Received a notice of action?
When the people you owe start legal action using the small claims process, you will get:
- Form 125, ‘notice of action for a small claim’
- Form 126A, ‘notice of dispute’
- Form 126B, ‘notice of acceptance of liability’
Getting a ‘notice of action’ does not need to be a cause for alarm.
Use our online debt help tool for support and advice.
You have 21 days from the date the forms are sent to respond with either:
- The ‘notice of dispute’ or
- The ‘notice of acceptance of liability’
Your CCJ cannot be passed to The Enforcement of Judgments Office (EJO) if:
- You agree that you owe the amount stated, and
- You are able to pay the full amount before the deadline
There are no forms to return in this case. You will need to:
- Pay the people you owe (not the court) the full amount, including the court fee
- Make the payment using the payment address given on the ‘notice of application’
- Make sure you keep copies for your records of how much you pay and when you pay it, in case the court asks for proof
What happens if I cannot pay?
There are many ways to respond to the claim if you cannot pay. You must act quickly.
You risk further legal action if you do not respond
Asking for time to pay
You can ask the people you owe for time to pay if:
- You agree that you owe the money and the amount being claimed is correct
- You cannot pay in full right now
Contact the people you owe and arrange time to pay within 21 days of the ‘notice of application’ being issued.
You risk getting a CCJ if you do not respond in time. The court then decides how much you pay.
- Fill in the form 126B ‘notice of acceptance of liability’
- Tick ‘Yes’ to the question 'do you wish to apply for time to pay this amount?’ and state your payment offer
- Send the form, a copy of your budget and a list of people you owe to the court. Use our budgeting form and fill in your details for each section
- The decree is granted and the court orders you to pay the money if the people you owe agree
- A judge reviews the claim and decides how much you have to pay if the people you owe do not accept your offer
The court grants the decree with a 'stay of execution'. This stops the people you owe from enforcing the judgment.
This means your CCJ will not be passed to the EJO if you keep up to date with the agreed payments.
Entering into a Tomlin order
A Tomlin order is a legally binding agreement.
You and the people you owe agree to put the claim on hold, but you must make set payments.
Find out more about Tomlin orders.
How to defend the claim
You can disagree with the claim made against you if:
- The claim amount is incorrect
- You do not owe the money
- The debt is statute barred
- You have paid the debt in full
To defend the claim, you need to:
- Complete form 126A, ‘notice of dispute’, and
- Return your form to the court within 21 days
The form gives you the chance to explain why you are defending the claim. You need to support this with evidence.
We recommend you seek expert legal advice before taking this course of action. Defending a claim can be complex.
Once the court receives your completed forms:
- A hearing will be scheduled for your case, and
- A judge will make the final decision
The decree is granted and you receive a CCJ if your defense is unsuccessful.
A CCJ remains on your credit file for six years and makes it harder to take out further credit.
Help and advice
Use our online debt advice tool if you receive a notice of action for a small claim.