County Court Claim - cancel on repayment plan?

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    County Court Claim - cancel on repayment plan?

    Hopefully a quick question...one of our landlords started a claim on an ex-tenant for rental arrears (circa £1500). Tenant has admitted, verbally, that the money is owed via the Citizens Advice Bureau.

    The CAB have said that normally the court claim would be set aside as a repayment plan had been agreed to avoid "clogging up the court system" which seems a strange request to us - what is to stop the ex-tenant stopping paying and the whole claim having to be issues again?

    Any advise or thoughts greatly appreciated.

    FYI; it was a one year AST, all bond and documentation registered/signed/provided as necessary etc. Tenant lived there the whole year. The bond was offset against the arrears and a bit of cleaning - which the tenant neither agreed to, nor disputed. In fact, we have not heard from the tenant at all until the call from CAB today.

    #2
    If you agree to a payment plan, you are in no worse a position than if the court imposed one, but you don't risk having to pay the court fees.

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      #3
      If there's an agreement to repay money owed, there's no court case, because there's no dispute.
      If the tenant via the CAB and the landlord agree a repayment plan, that should be put in writing (signed by the landlord and tenant).

      If the tenant doesn't pay in line with the agreed plan, that's a black and white legal claim.

      Two points, the plan should include the cost of the court fee that the landlord has (presumably) already paid and shouldn't last more than 6 years.

      That would actually be quite a decent outcome, the tenant is at least trying to sort the problem out (and probably wants to avoid a ccj).
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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        #4
        Thanks for the fast replies - just to clarify - the landlord has already started the claim. The tenant has received the claim form and that's what prompted him to go to the CAB.

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          #5
          All they have is an offer of a plan. However, if they refuse the offer, and the court agrees to essentially the same arrangement, you might find that the court is unwilling to add the court fees to the tenant's payments.

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            #6
            Thanks everyone

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