From the claimant's point of view this is the ideal outcome and it does quite often happen. The defendant's bluff is called or he is forced to snap out of his inertia. Unfortunately some people (and businesses) only pay when they are forced to do so. The defendant is required too pay directly to the claimant within 14 days, or within 28 days if Acknowledgement of Service has been filed. The claimant should keep good records of payments made and give a receipt if asked. This is all that is needed and there is no requirement for the claimant to tell the court. However, the court would like to know so that the file can be closed, and it is courteous to do so.
The defendant is required to pay the total amount of the claim plus, so long as it has been claimed, continuing interest at the daily rate up to the date of payment. It sometimes happens that the claimant will pay the original debt but not all of the court fee, solicitor's costs (if applicable) and continuing interest. If this happens, the claimant has a policy decision to make and may decide not to pursue these amounts. On the other hand, they are payable and the resources of the courts are available to enforce payment. After waiting for the required period the client can request judgment, which will be granted, then set about enforcing the judgment and getting payment.
This too quite often happens. The claimant must wait 14 days from the deemed date of service and may then apply for default judgment which will be given. This is done by means of the Request for Judgment part on the Notice of Issue form and the application may include continuing interest so long as it has been claimed. The claimant may request an order for immediate payment, payment by instalments or payment at a specified future date. Not surprisingly, immediate payment is the option most often chosen.
The defendant must complete the form 'Admission (specified amount)' and send it to the claimant within 14 days of the deemed service date, or 28 days if Acknowledgment of Service has been sent to the court. The form calls for details of the defendant's financial circumstances and this is so that the claimant, and if necessary the court, can assess the reasonableness of the request and the offer. It is humiliating to have to provide the details but it is a humiliating position to be in. The questions have obviously been framed with an individual in mind but the form may be used by other sorts of defendants, such as companies or partnerships. Like certain other forms it must be signed as a declaration that the information that it contains is true.
The form asks the defendant to make a proposal about payment. This may be for payment by instalments or for payment in full at a specified future date. On receipt of the form the claimant should apply for judgment which will be given. This is important because it is a pre-requirement for any enforcement measure that may be taken later.
The claimant may decide to accept the defendant's offer and in this case the court will make an order that instructs the defendant to make the appropriate payments. Alternatively the claimant might decide to reject the offer or an offer might not be made. In this case the claimant should make an alternative proposal to the court. This alternative proposal might be for quicker payments, or (in theory at least, slower payments) or it might reject any delay and ask for immediate payment in full.
If the defendant and the claimant cannot agree, the court will decide, and it may do so with or without a hearing. The court's decision may be to accept either proposal or it might be a third way, usually somewhere between the two. The court's order is binding on both parties. The defendant is safe from enforcement action so long as he makes all the payments in accordance with the order, but he must do this and the claimant may take action immediately any payment is not made in full on the required date.
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Note: This article was sent to us by: Johnny Gardener at 05092010
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