Published in Debt Advice Features on Monday, January 29 2007

A CCJ can be paid in two ways. You are either required to pay the whole amount up front in full or you are ordered to pay the amount back in instalments. If you are unable to afford the full payment or the required instalments then you can ask for a varied order. In this case, you apply to the court to vary the order and reduce the monthly instalments.

A varied order form (Form N245) can be obtained free from any county court office. You will be required to fill in information about your income and expenditure as well as the amount that you can afford to pay. A fee must be paid to apply for a varied order. Information regarding the fee can be obtained from court staff or the County Court Fees leaflet which is available at any county court. (NB: If you receive certain social security benefits, or receive very little income, then you may be able to claim exemption from paying a fee or have part of the fee waived). Once you have sent the form and fee to the court, this will be forwarded to the claimant who will then make a decision on whether the offer of repayment will be accepted. If accepted, then the order will be amended accordingly to fit with the repayments you said you could afford. If not accepted, the court will examine your situation and determine how much you should pay. If you feel the arranged amount is still unaffordable then you can ask the court to reconsider the order. This must be done in writing within 16 days from when the varied order was sent out. Following your request a private hearing between yourself, the claimant and the district judge will be arranged by the court and your payments will be discussed. Once affordable repayments are agreed, you must not miss a repayment.

The above procedure may be followed at any time when you can not make the repayments. A new varied order can then be requested.