The terms of a time order will depend on the debtor’s circumstances. The
court will also consider what is ‘just’, bearing in mind the creditors position
and the debtor’s future prospects. During the period of the time order, the
creditor cannot take any action to terminate the agreement, recover possession
of any land or goods or remove or vary any rights of the debtor (s 130 of the
CCA 1974). Following the decision in Southern District Finance v Barnes (1995),
where a default notice has been served, the court will have the power under s
129 to rewrite the agreement, resulting in the rescheduling of the whole of the
outstanding balance under the loan and, if necessary, where it is ‘just’, vary the
rate of interest.
the goods in such circumstances
would give the debtor the right to sue for damages for conversion or trespass to
goods or for breach of an implied warranty of quiet possession.
However, there is one limitation on the liability of the debtor who fails to
comply with a default notice provided by the rules relating to ‘protected goods’