A time order is a court order under section 129 of the Consumer Credit Act 1974 that can give a borrower in difficulty more time or smaller instalments on a regulated agreement. The provision is marked as applying across the United Kingdom, but the court steps described here relate to England and Wales, and Scotland has an alternative that is covered below.
Default notices come first
Section 87 says that before a creditor can terminate a regulated agreement for breach, demand earlier payment, recover goods or land, treat the borrower’s rights as ended or restricted, or enforce security, it must serve a default notice under section 88. Section 88 requires the notice to be in the prescribed form and to specify the nature of the alleged breach, what must be done to remedy it and the date by which it must be done.
That date must be no less than 14 days after service, and the creditor cannot take the action listed in section 87 before then. The notice must also contain prescribed information about the consequences of not complying and a copy of the default information sheet.
When a borrower can apply
Section 129(1) lets the court make a time order if it appears just to do so. Relevant occasions include an application for an enforcement order, an application by the borrower after being served with a default notice or certain other notices, and a creditor’s action to enforce the agreement or recover goods or land. A newer paragraph, inserted by a 2025 statutory instrument that took full effect on 15 July 2026, extends this to a borrower under a regulated deferred payment credit agreement who has been told the creditor intends to demand earlier payment, restrict rights or terminate the agreement.
What a time order can do
Under section 129(2), a time order provides for payment of the sum owed by instalments, at times the court considers reasonable having regard to the means of the borrower and any surety, or for remedying a breach other than non-payment within a period set by the court, or both. It is therefore aimed at affordability and breaches that can be put right, rather than at cancelling a debt.
Section 130(1) allows the court to make a time order that reflects an instalment offer accepted by the creditor, without hearing evidence of means. Section 130(6) allows the court to vary or revoke an order on application by anyone affected, which is relevant if circumstances change.
Effect on the creditor
Where a time order gives the borrower a period to remedy a breach, section 130(5) prevents the creditor from taking the section 87(1) actions during that period. If the breach is remedied in that time, it is treated as not having occurred. For instalment orders, the practical effect is that payments are made at the court-set amount, so the borrower needs to consider carefully whether the amount is genuinely affordable before proposing it.
Scotland
Section 129(3) provides that where, in Scotland, a time to pay direction or time to pay order has been made for a debt, a time order cannot then be made for the same debt.
Special cases
Section 130(2) says that, for hire-purchase and conditional sale agreements only, a time order for instalments may also deal with sums that are not yet payable but would become payable if the agreement continued. Section 130(4) treats a borrower who keeps the goods after such an order as a bailee (or, in Scotland, a custodier) even though the agreement has ended. Section 130(3) excludes a time order for instalments where the agreement is secured by a pledge and regulations make a notice unnecessary to enforce the pledge.
The statute does not set out court forms, fees or the steps for applying. Those are matters for the court and its procedure rules, so the court or a debt adviser can confirm them for a particular case.
FAQs
Can a lender act straight away after a missed payment?
Not for termination or recovery. Section 87 requires a default notice, and section 88 gives at least 14 days to remedy the breach.
Does a time order cancel the debt?
No. Section 129(2) provides for instalments or remedying a breach, not for writing off what is owed.
Must the court always hear evidence of the borrower’s means?
Not always. Section 130(1) allows the court to make an order that gives effect to an instalment offer the creditor has accepted, without hearing evidence of means.
Which agreements can a time order cover?
Section 129 refers to regulated agreements and to securities for them, so the first question is whether the agreement is regulated.
Can a time order be changed later?
Yes. Section 130(6) allows the court to vary or revoke it on the application of any person affected.
Bottom line
A time order lets a court in England and Wales set reasonable instalments or a period to fix a breach for a regulated agreement, usually after a default notice or in enforcement proceedings. It does not reduce the debt, and a creditor must serve a compliant default notice first. This is general information, not financial or legal advice; a debt adviser can help a borrower decide whether to apply.
Sources
- legislation.gov.uk, “Consumer Credit Act 1974, section 87: Need for default notice”
- legislation.gov.uk, “Consumer Credit Act 1974, section 88: Contents and effect of default notice”
- legislation.gov.uk, “Consumer Credit Act 1974, section 129: Time orders”
- legislation.gov.uk, “Consumer Credit Act 1974, section 130: Supplemental provisions about time orders”