If you take someone to Court and are unsuccessful in obtaining the money claimed you will have to pay their legal costs (if the claim exceeds £5,000 or £1,000 for personal injury cases).
If the claim is less than £5,000 (or £1,000 for personal injury cases) you will not have to pay any legal costs but will have to pay their lost earnings and travel expenses in attending Court.
If you lose a claim that you have defended, a judgment will be entered against you for the amount claimed together with legal costs (if the claim is over £5,000 or £1,000 for personal injury).
If you cannot pay the judgment or costs you should take advice from FJG or your local Citizens' Advice Bureau.
If you have been ordered to pay the judgment as a lump sum you may be able to arrange to pay it by instalments.
If you have been ordered to pay the judgment by instalments that you cannot afford you may be able to pay by smaller instalments.
In either case you can apply to the Court on Form N245 to review the terms of payment.
You must act promptly.
If you have no hope of paying the judgment you may have to consider making yourself Bankrupt or subject to an Administration Order (available where your debts do not exceed £5,000).
Either of these steps has serious consequences for your ability to obtain credit. You should always take legal advice before making such an application. Click here to contact us for further details.
If an application has already been made to enforce the judgment you will have to apply to the Court to suspend or vary any order that has been made. see Enforcing a judgment