One way you can deal with debts is by getting a Time Order. You can ask the court for a Time Order if you have a regulated credit agreement and the creditor has sent you a default notice -a formal warning that you have missed payments.
A Time Order means the court can reduce or even stop the interest that is adding up on the money you owe, and reduce the payments to a level you can afford. But you have to show the court that you have real difficulty making the original payments. You may also have to show that you would be able to pay the full instalments again later.
If you get a Time Order, the missed payments will still be listed on your credit reference file, so you may have trouble getting credit in the future.
If you want to apply for a Time Order, you must first write to the creditor explaining how much you think you can afford to pay and over what period. If the creditor refuses your offer, you can apply to the county court for the time order, and it will decide whether your offer is reasonable.
Alternatively, you can simply go ahead and pay the creditor what you’ve offered. If they don’t think that you’re paying enough, they have the option of making a claim through the courts. You can apply for a Time Order at this point. An advantage of this route is that you don’t have to pay the court fee.