A Time Order is an order made to court which can extend payment terms or reduce interest rates to help people who are struggling to pay arrears on a loan. Time orders only apply to loans regulated by the Consumer Credit Act 1974.
Advantages to time orders are:
- creditors do not have to agree to the time order as it is a court order
- once the order is made, no further action can be taken by the creditor provided payments are kept up to date
- interest can be reduced, enabling payments to be set at an affordable level
- it can change the level of interest creditors charge where a term exists in the contract that interest can be charged after judgment
Disadvantages of a time order are:
- you will have to give good reason why you should have a time order
- you will have to wait until the creditor has issued a default notice before applying for a time order
- creditors courts costs may be added when the time order is being applied for
Time Orders are complex and specialist advice should be sought
If you have received a County Court Judgment or Default Notice and not sure if you would benefit from a Time Order, call our advisors today. It is important to act quickly if you have received a county court judgment as there are strict time limits.