by Paul Lines

Created on: August 11, 2011   Last Updated: August 12, 2011

If you have reason to make a financial claim through an English county court, it is important to understand how this system works and what limitations apply to such a claim, if any. In addition, there are further considerations you need to pay attention to prior to making the decision to claim.

Pre-Claim consideration

Taking court action for the recovery of a debt should be an action of last resort. It is likely to be easy and, potentially less costly, often providing a better outcome. There are a number of alternatives that are available prior to court proceedings, which include arbitration, or even the simple process of negotiation between the two parties. It should also be mentioned at this stage that if such an ‘out of court’ remedy is not at least attempted, or refused, it can have an impact upon the outcome of any future court case. For example, even if the court finds in favour of the plaintiff and they have refused to try other methods to recover the debt, they could find that the court will not award the costs to the losing party.

There is one other process that it would be wise to undertake before court proceedings and that is to access the ability of the people being claimed against to repay. If a debtor does not have the ability to pay then, even if the plaintiff wins in court, recovering the debt might not be a forgone conclusion. A first stop in assessing the repayment ability would be to check their rating with credit agencies, such as Experian.

The county court claim process

If court action is required, the first point to remember is that currently the maximum amount that a county court is able to judge is at present £100,000. Any amount, which exceeds this figure, has to be pursued in the High Court.

The first step in the court process is to fill in a claim form (N1). This two page form asks for full details of the claimant and the defendant, together with details of the claim, amount being recovered together with any costs that are to be added, which includes court and legal representative fees and then sign it. It is possible to make the claim online.

Once the form is completed, if not online, three copies of it need to be taken or sent to the county court. If there is more than one defendant then additional copies must be supplied for each one. Providing the documentation is deemed to be in order the claim will be numbered and then served on the defendant by the court.

It should be noted that in the event that the defendant(s) defend the claim it will be transferred to the county court closest to them.

Costs

At the time of lodging the claim, court fees will need to be paid. The fee is dependent upon the amount of the claim. However, the fee can be waived or reduced under certain conditions, which are usually based upon where the claimant is received benefits of some nature or has a low income.  

In regards to other costs likely to be incurred during the case, such as witness payments and legal fees, these can within reason be reclaimed from the defendant. Court fees can only be reclaimed if you win the case.

Enforcement

In the event that the claim is won, but the loser still does not pay, it will be necessary to return to the court to enforce the claim. This can be done through a warrant of execution, an attachment of earnings, a third party debt order (effectively freezing the defendants assets), or a charging order.

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