Hi all,

First post here, hoping someone can help me with a query.

I have a small (ish) unsecured personal loan, which, due to a change in circumstance I am really struggling to pay.

I currently have an agreement with the company paying a token gesture each month but they are pushing for more which I just don't have,

I think court action,

starting with a decree is imminent.

I no longer live in the UK and don't plan returning any time soon, possibly ever,

can a Decree be issued against a non UK resident?

I know a CCJ in England can't,

but I am struggling to find a definitive answer on Scottish Decrees.

Ideally if I can avoid a decree/have it set aside I will offer to continue paying a token payment, or if I come back to the UK and work, increase payments and pay the debt off in full, If i never come back i guess it will get statute barred!

Thanks in advance for any help!!

Hi montyp and welcome to CAG. I do not have any experience with Decrees, however someone with knowledge will answer this for you. In Scotland an unpaid debt becomes extinct after five years of non payment, Statute barred does not apply here as the debt no longer exists.

Not sure why you think a CCJ cant be issued or a decree come to that if you no longer reside in the UK.....have you informed the creditor of your change of address? Under UK legislation last known address is deemed as valid service...I assume the same applies in Scotland.

A decree is a ‘money judgement’ issued by the sheriff courts in Scotland, and is the same as a County Court Judgement (CCJ) in England and Wales. It is an order to pay the amount claimed by a creditor, and the total may include additional interest and expenses of the court.

Details of all small claims and summary cause money decrees are kept within a public register held by the Registry Trust for a period of six years, and the details updated as necessary.

The Registry Trust also notifies the credit reference agencies when a decree is issued, recalled or dismissed, so the debtor’s credit file can be amended with each agency.

What can you do to prevent a decree being issued?

If you are experiencing threats of legal action by your creditors, there are certain steps you can take to protect yourself from a money judgement being issued against you.

The obvious solution if you are not disputing the debt is to pay what is owed, but this isn’t always possible when you are experiencing financial difficulty.

Extra time to pay

You are entitled to request additional time to pay the sum claimed, either by instalments or in a deferred lump sum. This can be done in writing before the court hearing, or by attending court in person to make the application.

If a time to pay direction is granted you will receive an extract decree, which is a copy of the court order detailing the timescale in which you should pay.

If the debt in question is regulated by the Consumer Credit Act, 1974, you can apply for a time order. This is similar in nature to a time to pay direction, and allows several elements of your loan to be adjusted including the repayment amount, duration of the loan, and the interest rate applied to the outstanding amount.

Ignoring the court summons

Choosing to ignore the court summons will probably result in a decree being issued against you, with the ensuing adverse effect on your credit rating.

The three main credit reference agencies will be notified, with details of the decree remaining on your credit file for six years. This makes it difficult for you to obtain credit and other forms of borrowing, and can even impact on your job in some cases.

Enforcement action by the creditor

Failing to pay the decree and not receiving extra time to pay will mean your creditor has the right to take enforcement action. This can include a variety of measures:

Attachment: bailiffs can ‘attach’ some items kept outside of the home in lieu of monetary payment, with a view to selling them at auction

Earnings arrestment: payments are taken from your wages at source

Bank arrestment: money in your bank account is frozen

Regards

Andy

hows this going...........