If a creditor is not willing to accept your offer of payment, they may start court action to recover the debt. To do this the creditor must first send you a default notice, giving you time to pay the arrears. If you cannot pay, the creditor may start court action.
You will receive a summons or an initial writ from the court depending on the size of the debt. The sheriff’s court deals with most cases, and the court of session deals with larger debts.
You need to return the document titled ‘Application in writing for a time to pay direction'. This asks the court to set payment in monthly instalments based on what you can afford.
It is very important that you complete and return this before the deadline. If you do not your payment may be set at an amount you can not afford. If the creditor objects to your offer the court may require a hearing.
You will then receive a decree, which will be either:
- An open decree asking for payment in full
- A time to pay direction setting monthly instalments
If you do not pay as stated in the decree, the creditor can then begin diligence to recover the debt.
If you do not think the amount claimed is correct, you may need specialist legal advice.
For more information about the court system, refer to the Scottish Courts.
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