Being pursued for a debt you cannot pay—or do not believe you owe—can feel overwhelming. But under UK law, you are not powerless. You have rights to challenge the debt, defend a claim, or negotiate a fairer outcome.

This guide walks you through your options, from responding to Letters Before Action to setting aside County Court Judgments. Whether you face genuine financial difficulty or a disputed claim, knowing your rights can protect you from unfair outcomes.

If you receive a Letter Before Action or a County Court claim form, act immediately. Ignoring correspondence leads to default judgments that damage your credit record and give creditors enforcement powers.

You typically have:

• 14 days to acknowledge service.

• 28 days to file a defence.

Key questions to ask:

• Is the debt genuinely owed?

• Has it already been paid?

• Is the amount correct?

• Is there a valid agreement?

Consumer debts under the Consumer Credit Act 1974 (e.g., credit cards, loans, hire purchase) must be supported by a signed, compliant credit agreement. If the creditor cannot produce one, the debt may be unenforceable.

• Mistaken identity – not your debt.

• Incorrect balance – unlawful fees or interest added.

• Unenforceable contract – missing paperwork or non-compliant credit agreement.

• Statute-barred debt – debts older than six years (five in Scotland) may not be enforceable.

• Breach of FCA rules – lenders must treat customers fairly.

If you miss the deadline and judgment is entered, you may apply to set it aside using Form N244. The court will consider:

• Were you properly served with the claim?

• Do you have a real prospect of defending it?

If successful, the claim reverts to the beginning, giving you a chance to defend.

Even if the debt is owed, you can often negotiate:

• Instalment plans based on affordability.

• Reduced settlements (creditors may accept partial payment).

• Debt Respite Scheme (Breathing Space): up to 60 days protection from enforcement while you seek debt advice.

The Consumer Rights Act 2015 protects against unfair contract terms. If the contract is unclear, unbalanced, or hidden in small print, you may have grounds to challenge.

Financial products may also be challenged for mis-selling. For example, if you were pressured into a loan you could not afford, you may have recourse through the Financial Ombudsman Service (FOS).

Defending a claim can be complex. A solicitor can:

• Draft a defence.

• Negotiate with creditors.

• Represent you in hearings.

Defending a debt claim is about ensuring fairness. You may not always avoid liability, but you can reduce the sum, negotiate better terms, or even defeat the claim entirely. Acting quickly and seeking advice puts you back in control.