Paying judgment debt by instalments

Yes, you can ask the court to allow you to pay a judgment debt by instalments rather than as a lump sum. This is a common and well-established procedure.

How this works in practice:

If a county court money judgment has been entered against you, you have the right to apply to the court to vary the terms of payment. This is done under Part 14 of the Civil Procedure Rules and, more specifically, by making an application using Form N245, which is called an "Application to vary a judgment or suspend a warrant and to pay by instalments".

On the N245 form you will need to set out your financial circumstances in detail, including your income, outgoings, debts, and any dependants. The court uses this information to decide whether instalments are appropriate and, if so, what level of payment is reasonable.

When you might use this:

1. Before enforcement action is taken, if you simply cannot afford to pay the full amount at once.
2. After enforcement has started, for example if a warrant of control has been issued by bailiffs. In that case, the N245 application can also ask the court to suspend the warrant while you pay by instalments.

What the court considers:

The court will look at what you can genuinely afford after meeting your essential living costs. The creditor (the judgment creditor) will usually be given the chance to agree or object to the proposed instalments. If there is a dispute, the court may decide the matter on paper or list a short hearing.

Key points to be aware of:

The court fee for filing an N245 is currently £14, which is modest. You should be honest and accurate about your finances because providing misleading information can have serious consequences.

If the court grants an instalment order, the judgment still appears on your credit file, but as long as you keep up the payments, the creditor cannot take further enforcement steps without going back to the court.

If you have already received the judgment and it states payment by a certain date or forthwith, you should act quickly. The sooner you apply, the better your position, particularly if you want to head off enforcement action.

If the judgment creditor has already instructed enforcement agents (bailiffs), the application to suspend the warrant and pay by instalments becomes more urgent. You can still apply, but timing matters.

Practical steps:

1. Obtain Form N245 from the gov.uk website or from your local county court.
2. Complete it fully and honestly, attaching evidence of your income and outgoings if possible.
3. Propose a realistic monthly amount that you can sustain. Courts are experienced at spotting proposals that are either too generous or too low.
4. File it at the court that made the judgment and pay the court fee.
5. Keep a copy of everything you send.

One further point worth noting is that even before applying to the court, it can sometimes be worth contacting the judgment creditor directly to propose instalments by agreement. If they agree, you can ask the court to record a consent variation, which avoids any dispute. Many creditors prefer regular payments to the cost and delay of enforcement.