Form N440 UK: Time Order Application Guide

At a glance

• What it is: Form N440 is the notice used by a debtor or hirer to ask a County Court judge for a "Time Order" under sections 129 and 130 of the Consumer Credit Act 1974.
• Who can apply: A debtor or hirer under a regulated consumer credit or consumer hire agreement — typically personal loans, credit cards, hire-purchase and conditional sale agreements. Business-purpose agreements over £25,000 are usually exempt under section 16B.
• What the court can order: Under section 129, the court can reschedule arrears and instalments by such amounts and at such times as it considers reasonable, or give time to remedy a non-payment breach. Under section 136, it can also amend the agreement itself — including, in an appropriate case, the interest rate.
• Effect on enforcement: Once a Time Order is made, section 130 stops the creditor taking the steps listed in section 87(1) of the Act (such as terminating the agreement, demanding early payment or repossessing goods) while the order's payment period continues and you keep to it.
• Court fee: A fee is payable when you file Form N440. Check GOV.UK's civil court fees guidance for the current amount, and apply for Help with Fees if you are on a low income or certain benefits.
• Where to apply: The County Court hearing centre already dealing with the lender's claim, if proceedings have started, or your local hearing centre if you are applying before any claim is issued.
• Not every debt qualifies: A Time Order can only be made in respect of a regulated agreement under the Consumer Credit Act 1974 — it is not a general power to rewrite any debt.

What Form N440 is for

Form N440 is the application notice used by a debtor or hirer to ask the court for a Time Order under sections 129 and 130 of the Consumer Credit Act 1974. A Time Order is a judicial remedy that allows the court to reschedule the way a regulated credit agreement is repaid.

In practice, this usually means extending the term, reducing the monthly payment, or setting a new schedule for clearing arrears. In certain cases the court can also use its power under section 136 of the Act to vary the agreement itself so that the new schedule is genuinely workable — see the section on interest rate changes below.

A Time Order can only be made in respect of a regulated agreement under the Consumer Credit Act 1974. It is not available for every type of debt, so the nature of the agreement matters. The form is lodged with the County Court, usually the hearing centre that deals with the lender's claim if proceedings are already underway, along with a fee and supporting information about your finances.

Who can apply: regulated agreements under the Consumer Credit Act 1974

The right to apply for a Time Order belongs to the debtor or hirer under a regulated agreement — a consumer credit agreement or consumer hire agreement that falls within the Consumer Credit Act 1974. This commonly covers:

• Personal loans and credit cards.
• Hire-purchase and conditional sale agreements (including most car finance).
• Other running-account or fixed-sum credit agreements within the Act.

Not every credit or hire agreement is regulated. Under section 16B of the Act, an agreement entered into wholly or predominantly for the debtor's or hirer's business purposes is normally exempt from regulation where the credit or hire payments exceed £25,000. If you are unsure whether your agreement is regulated, check the agreement documentation for a statement about its status, or take advice before filing.

You can apply for a Time Order whether or not the lender has already started court proceedings. If the lender's claim is already underway, a Time Order application is usually made within your defence or by a separate application in those existing proceedings. If no claim has been issued, you start your own application by filing Form N440.

What the court can order: sections 129 and 130 explained

Section 129: rescheduling payments or remedying a breach

Section 129 of the Consumer Credit Act 1974 gives the court power to make a Time Order providing for one or both of the following, as it considers just:

• Rescheduled payment — payment of any sum owed under the regulated agreement (or a related security) by instalments, at times the court considers reasonable, having regard to the means of the debtor or hirer and any surety.
• Time to remedy a breach — where the breach is something other than non-payment of money (for example, a failure to insure or maintain goods), time to put that right within a period the court specifies.

Section 130: what protection you get once the order is made

Section 130 sets out what happens once a Time Order is in force. While the period specified in the order continues, the creditor or owner must not take the enforcement action described in section 87(1) of the Act — steps such as terminating the agreement, demanding earlier payment, recovering possession of goods or land, or treating a right of the debtor or hirer as ended, restricted or deferred. If a breach the order relates to is remedied within the relevant period, it is treated as if it had not occurred. Any person affected by the order, including the lender, can apply to the court to vary or revoke it later.

Can the court change my interest rate?

The court's central power under section 129 is to reschedule payments, not to rewrite the finance terms. However, section 136 of the Consumer Credit Act 1974 separately allows the court to amend the agreement — or any related security — "in consequence of" a term of the Time Order, where it considers this just.

The Court of Appeal confirmed in Southern and District Finance plc v Barnes [1995] 27 HLR 691 that this can include reducing the interest rate that applies going forward, so that a reduced instalment is not simply eaten up by interest continuing to accrue at the original rate. The court in that case reduced both the monthly payment and the interest rate as part of the same Time Order.

This is not automatic. Whether a judge varies the rate — and by how much — depends on the type of agreement, the figures put before the court, and whether the proposal is shown to be affordable. Set out clearly in your application why a rate variation, if you are asking for one, is necessary to make the schedule realistic.

How to complete and file Form N440

1. Check the agreement qualifies. Time Orders are only available for regulated agreements under the Consumer Credit Act 1974 — see who can apply above. Confirm the type of agreement you hold and whether a default notice under section 87 has been served before proceeding.
2. Gather your financial information. The court will want to see a realistic picture of your income, essential outgoings and existing debts. Prepare an income and expenditure statement, recent bank statements and copies of the credit agreement, default notice and any correspondence from the lender. These documents underpin the repayment proposal you put forward.
3. Complete Form N440 carefully. Fill in the agreement date and reference number, details of any guarantor or third-party surety, the outstanding balance, the arrears figure, and your proposed repayment terms. Include any other alleged breaches and the names and addresses of everyone who needs to be served, including the lender.
4. File the application at court. Submit the completed Form N440, supporting evidence and the relevant court fee to the County Court hearing centre dealing with the matter. Check GOV.UK for the current fee, or ask about Help with Fees if you are on a low income or receive certain benefits.
5. Attend the hearing. The court will usually list a hearing where the judge considers your proposal and hears from the lender. Bring your paperwork, be ready to explain your circumstances, and be realistic about what you can afford.

What happens at the hearing

At the hearing, the district judge will look at three things: your financial position, the lender's account history (including any default notice and arrears figure), and whether your proposed repayment plan is credible. Both sides can put forward evidence and argument — the lender is entitled to oppose the application if it believes the proposal is unrealistic or that the arrears will not clear within a reasonable time.

If the judge is satisfied, the Time Order is made on the terms decided by the court, which may differ from what you originally proposed. From that point, section 130 protection applies for as long as the order's payment period continues and you comply with it. If your circumstances change again afterwards, either you or the lender can apply to the court to vary or revoke the order.

Worked example: rescheduling a hire-purchase arrears position

Priya, a fictional example, holds a hire-purchase agreement for her car with monthly payments of £220. After losing overtime hours at work, she falls two months behind, building arrears of £440, and receives a default notice under section 87 warning that the finance company may repossess the vehicle if she does not pay within 14 days.

Rather than wait for the finance company to issue court proceedings, Priya files Form N440 before the 14-day period ends. She sets out her reduced income, her essential outgoings, and a proposal to clear the £440 arrears by adding £40 to her monthly payment for 11 months, alongside her ongoing instalments.

At the hearing, the judge considers her income and expenditure statement and the finance company's account history. Satisfied the proposal is realistic, the judge makes a Time Order in those terms. While Priya keeps to the new schedule, the finance company cannot repossess the car or terminate the agreement under section 87(1) in relation to the arrears the order covers. If Priya misses a payment under the new schedule, the finance company can return to court to enforce the original agreement.

Common mistakes that weaken an application

• Proposing figures you cannot actually sustain. A judge will test your income and expenditure statement against your proposal — inflated or unrealistic numbers undermine your credibility at the hearing.
• Applying to the wrong agreement or missing the exemption point. Check the agreement is a regulated agreement under the Consumer Credit Act 1974 before filing; business-purpose agreements over £25,000 are usually exempt under section 16B.
• Leaving the court fee or Help with Fees application to the last minute. Apply for fee remission at the same time as filing Form N440 if you think you may be eligible.
• Assuming an interest rate reduction is automatic. As explained above, section 136 gives the court a discretion, not a guarantee — put the reasoning for any rate variation you want clearly before the court.
• Not keeping to the order once it is made. Section 130 protection only lasts while you comply with the new terms; missing payments under the order can put you back where you started.

Next steps if you're struggling with a regulated credit agreement

If you are behind on a credit card, personal loan, hire-purchase or conditional sale agreement, it is worth understanding your wider rights before you file anything with the court — see our guide on consumer rights when buying on credit. Free, independent debt advice can also help you check whether a Time Order, a different repayment arrangement, or another debt solution altogether is the right fit for your situation — see GOV.UK's guidance on dealing with debt.

This guide provides general information about Form N440 and Time Orders under the Consumer Credit Act 1974 in England and Wales. It is not legal advice and is not a substitute for advice tailored to your specific circumstances. The law described was accurate as at July 2026 and is subject to change — always check GOV.UK and legislation.gov.uk for the most current position, particularly the current court fee.

Last reviewed: July 2026 by a non-practising solicitor · Next review due: July 2027 or on legislative change.