Pay Off your Loan Agreement easier with a Time Order

When it comes to buying high-cost items, people generally don’t prefer to pay the full amount at once. Instead, they go for finance agreements that allow them to pay in instalments that are added with interest. So, this thing works like a loan. Even though you might find this to be comparably affordable to an upfront payment, you might have a problem paying this as well. Especially in times like the one we’re facing due to the Coronavirus, you might feel a strain in your pockets while in the middle of the agreement. 

In such cases, who wouldn’t feel better if the instalment amount is relaxed a little and so is the time to pay it? That would help you pay off whatever you owe and help you avoid the troubles you might have otherwise faced. That is exactly what a Time Order allows you to do. It will be helpful to you especially in cases where your lender has ownership of what you bought until you pay the full amount, such as a hire-purchase agreement. 

How will a Time Order help you?

When you find yourself unable to repay your debtors, you can apply for a Time Order to a court. If it gets passed, you‘ll get more time to repay your creditors. In addition to that, the monthly instalment would be reduced to provide ease in writing off your debt. Though you would still obviously have a limited amount of time to repay the amount. 

Would a Time Order be worth applying for?

You must know that Time Order is meant for the purpose of helping out people who aren’t able to keep up with monthly instalments of their loan. As such, it comes with certain kinds of benefits for the debtor. If done right, you would surely get a lot of profit out of it. Here are the reasons why you must give this option a try:

  • The monthly payments will be affordable

One of the biggest advantages you’ll get is that you’ll be required to pay only an amount that you can afford at the time you apply. So, now you would be able to comfortably clear all the money that you owe. 

  • Further interests won’t be added to the original amount

When the Time Order comes into effect, the interest rate on your loan would be frozen. That means it won’t increase with time. This, added with the affordable instalments, will give a lot of relief to the strain in your pockets. 

  • You can’t be taken to court

After the court passes your Time Order, your creditors can’t start any kind of legal proceeding against you. They also can’t pressurize or harass you to pay them in any way whatsoever. As long as you keep up with the new monthly instalment amount decided for you, there won’t be any more hassles. Then, it would only be a matter of time, before you’re finally able to get out of this bad debt. 

How can you get a Time Order?

There can be different situations where you get a Time Order. Sometimes, you have to apply for it, and other times the judge can pass it as an order made by the court. How you can apply for it differs from one situation to another: 

  • After you get a notice from your creditors

When you can’t afford your monthly instalments and miss one of them, you’ll get a notice from your creditors. This would ask you to make the payment within a specified period. Also, it would warn you of legal action, in case you fail to pay them. In case you can’t arrive at a plan or arrangement to pay them, you can apply for a Time Order. There’s no reason in waiting for them to take you to court. 

In this particular case, you’ll have to fill up a form giving the details of the situation you’re facing. Also, prepare a budget which you would have to follow. Consulting a good debt advisory service for that purpose would be worthwhile. Lastly, submit the form to your local county court for a fee. 

  • When you’re facing legal action

In case you ignore their notice or fail to pay them, your creditors will start a legal proceeding against you. In this situation, it would work a little differently. You’ll get an ‘admission form’ which is different from the claim form mentioned in the previous case. It would ask for your financial details such as earnings and spendings. 

After that, you have to prepare a budget and a payment plan, and offer it to the court. Also, in this case, you have to submit a ‘witness statement’ in which you’ll have to explain to the court why you need a Time Order. So, you must include every detail about your problems to make it as convincing as possible. Now, the creditors have the choice to either accept or reject your offer. 

  • After the action has been taken against you

In case you’re wondering, you can even apply after the court has passed the judgment against you. Your creditors might increase the amount you have to pay them by increasing the interest rate. In that case, you can fill up a general application to the court for a Time Order. 

  • As a judgment from the court

There are many cases where giving a debtor some relief in making the payment would seem like the way to go. In such situations, the judge can pass a Time Order for you. They can do this when the creditor has either requested them for enforcement, or for any other action.

Can your creditors charge interest after a Court Judgment?

If the creditor wants, they can continue charging interest on your debt. Not only that, they might even decide to increase the rate. Though they’ll have to notify you in advance if they plan on doing that. That way you’ll get some time to make plans and arrangements for the payment. You can also apply for a Time Order if you feel that you can’t afford to pay them. If need be, you must consult a debt adviser. Many of them offer their services for free and can be very helpful.  

Is there any good alternative to a Time Order?

A Time Order used to be the only good option that you can opt for to lower the monthly payments in a finance arrangement, but that isn’t the case any more. If you’re familiar with the matters related to this, you might have heard about something called an ‘unfair relationship test’. This is an effective and viable option to a Time Order that has been added recently. 

It allows you to claim to the court that the terms set by your creditors in your agreement are unfavourable to you. Based on that, the court will look into the matter and the creditor will have to prove that your claim is incorrect. If you win the case, the court has the authority to alter the terms of the agreement so that they’re in your favour.