Britons are keenly aware of the need to manage their budgets efficiently, or they could be left in a worrying financial position.
Even though the economic situation is much brighter than in previous years, people need to be aware of the dangers that come with overspending. At any point, UK residents could face unexpected costs that could knock their finances off balance.
Often, people do not have the money required to pay out for car repairs, DIY work and replacement belongings and need to go into credit in order to make ends meet.
For example, those who require a car to get to work will be placed in a tough situation if their car breaks down, or fails its MOT. Similarly, homeworkers will be forced into unwanted payouts if their laptop fails and they cannot carry out their usual work duties.
Issues like this can cause Britons to spiral into debt, which is when they could face action from the courts.
Anyone who is owed money could make a claim to the courts to retrieve their money. If these creditors opt for this action, it is vital to be knowledgeable about the legal process and know what to do next.
When a creditor starts court action, the person owing money will receive a claims form and a response pack. The former provides details of how much they are expecting to receive, while the latter contains a number of documents.
An admission form, a defence form and an acknowledgement of service are all included in the pack. The admission form is for those who accept the charges, while the defence form is for those who are willing to contest the fees.
The acknowledgement of service confirms that the recipient has picked up the documents and only needs to be sent out by those who believe they do not owe any money.
Within 14 days of receiving the documents, a response needs to be sent to the creditor.
People need to choose whether to return the defence form along with the acknowledgement of service, send back just the acknowledgement of service form, mail the admission form or send back the admission and defence form if a partial fee is being accepted.
Settling out of court
In some cases, it will be easier to reach an agreement without going to court. This will save costs and speed up the legal process.
However, the 14-day deadline for responses still stands. This can only be extended with permission from the creditor. If this happens, it needs to be confirmed in writing and the court must be notified.