FAQ

Can bailiffs come in and take my stuff if I am behind with payments for my debts?

A. No, bailiffs can not attend your property for credit debts until they have a County Court Judgement (CCJ) and you have missed the payments ordered by the court. Please see our factsheet 'FT05 - Bailiffs & Credit Debts' for more information.

B. Bailiffs can attend your property for council tax arrears, once the council has obtained a liability order, however, you do not have to let them in. Please see our factsheet 'FT06 Bailiffs & Council Tax Arrears' for more information.

C. If you are in arrears with payments for a Magistrates' Court Fine, bailiffs can attend your property and CAN force entry. Please see our factsheet 'FT08 Bailiffs & Magistrates' Court Fines' for more information

Will my creditors accept lower payments if I am struggling to make my contractual payments for my credit debts?

If your situation is very temporary creditors will sometimes consider allowing you to make lower payments for 1-2 months. You will need to contact your creditors to discuss this. However if your situation is not very temporary, or you would like your creditor to consider accepting lower payments and freezing further interest and charges, you will need to stop payments and request your creditor issues a default on your account. Usually once the default notice process has been completed, creditors and their agents will consider accepting lower payments. Please refer to our Self Help Guide for more information about the default process and dealing with creditors.

I am unable to afford the payments for my credit debts, will the Police come or will I be put in prison?

You can not be put in prison or the police called for not paying credit debts. Credit debts are a civil matter, NOT a criminal matter.

I have missed some payments for my debts, can I be made bankrupt?

A creditor can make you bankrupt if you owe £750 or more to a creditor that you have not been able to agree how to repay the debt. Creditors can club together to make you bankrupt but this is very rare. Once you are bankrupt the Offical Receiver, or appointed trustee may wish to sell any assets you have (such as a house or a car). Before presenting a bankruptcy petition a creditor must send you a Statutory Demand, if you receive one of these you should seek advice immediately. For more information about being made bankrupt please either visit the Insolvency Service website, or contact us.

I have received a Default Notice from my creditor, what does this mean?

If you do not make the contractual payments on a credit agreement, the company will follow their standard arrears/recovery procedure. You will usually receive standard letters and reminders, possibly with late payment charges, for some time before the company issues a default notice. The default notice is a requirement under the Consumer Credit Act 1974 and gives you a last chance to pay arrears before the creditor demands full repayment of all that you owe. Most creditors will not accept lower payments until their recovery procedure has completed. A default notice is usually registered on your credit reference file. Please refer to our Self Help Guide for more information about the Default Process.

Can I be blacklisted?

‘Blacklists’ of people who should be denied credit do not exist. Instead, people have credit reports which contain details of credit agreements that they have entered into. The report will state if any of the agreements have been defaulted on. It will also provide information such as whether that person has been subject to a Debt Relief Order for example. Your report is updated by a credit reference agency. When you apply for credit lenders will often use the information in your credit report to ‘score’ your application according to their own criteria and decide if you are a good risk. If you are ‘financially associated’ with someone then lenders will be able to see their name and credit history. You can obtain a copy of your credit report from Experian or Equifax.

What is a Debt Relief Order?

A debt relief order is a form of insolvency that you can apply to the insolvency service for. If your application is successful then all of your qualifying debts will be frozen for one year and then written off if you have had no changes in circumstances. Your application will need to be submitted by an ‘approved intermediary’, a specialist debt advisor. BDAC has a number of approved intermediary’s who can help you complete an application. There are strict qualifying criteria that you must meet in order to apply for a Debt Relief Order - Please refer to fact sheet 12 on our Self Help resources page and the insolvency service website: www.insolvency.gov.uk for further information.

What is bankruptcy?

If you are declared bankrupt then the court will try to pay your creditors from any valuable items you own (e.g. your car, a property with equity) or surplus income that you have. You are allowed to keep items for ‘reasonable domestic use’ such as normal household items. You can petition for bankruptcy yourself or your creditors can submit a petition to have you made bankrupt (although it is likely that they will only do this if they feel they will receive a substantial payment). The insolvency service website which provides general information on different forms of insolvency: www.insolvency.gov.uk

Where can I get more advice?

Please refer to Fact Sheet 3 on our Self Help resources page to find your nearest debt advice provider in Bristol. Below are the contact details for a number of national debt advice organisations: National Debtline: 0808 808 4000 - A national telephone based organisation. www.nationaldebtline.co.uk Consumer Credit Counselling Service (CCCS): 0800 138 1111 – A national telephone and internet based organisation. www.cccs.co.uk Payplan: 0800 716239 – A telephone and internet based organisation. Also insolvency practitioners for Individual Voluntary Arrangements (IVA’s). www.debtclinic.co.uk Community Legal Advice: 0845 345 4 345 – Advice line for low income clients. Referral system to local CLS suppliers. www.communitylegaladvice.org.uk