There are lots of different factors to consider when giving the best debt advice, including how much you owe and to how many creditors, whether you own a home, what type of debt it is (eg. secured or unsecured) and much more.
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
Debt Advice 
The debt solutions that are
available include:
available include:
Court Action on Debt
If your creditors feel that there is no other way to get the money that you owe them then they will probably start court action to recover the debt that you owe them. If you have experienced this then get in touch with us for free debt advice. We should be able to come up with a viable debt solution which will avoid the worst consequences of court action.
This article is going to be going over much of the information that you need to know about court action, and we have a dedicated section on bailiffs.
Our experienced advisers will be able to give you more specific advice if you get in touch and let us know what the situation. All the information you give us will be treated as private and confidential.
DEFAULT NOTICE
What is a Default Notice?
Before your creditors can take any legal action they have to send you a default notice. This is an official letter which will tell you how much you owe and when they expect the money.
This is a letter which is usually sent when at least 3 payments have been missed, although it might be as many as 6 payments that you have missed before you get a letter.
You will have a certain amount of time in which to pay what you owe, after which your creditors will
be able to start legal proceedings.
If you do get a default notice, or preferably before, you should contact us for free debt advice. We will be able to go over your debt problems and come up with the best solution for your situation.
CCJ
How does a CCJ Work?Before a court will issue a CCJ (County Court Judgement) against you, you will be given a chance to respond. You will get an official letter from the court which will include forms that you have to fill out, allowing you to tell them how much you can realistically afford to pay or evidence that the claimed amount is wrong.
If the CCJ is issued you will get a “Judgement for Claimant” form which will tell you how much you are expected to pay each month, or if you are expected to pay it all immediately.
If you do as you have been ordered by the CCJ then no further action will be taken against you. However, if you do not keep up with the payments then your creditor can ask for more drastic action to be taken.
To get free debt advice regarding CCJs, get in touch with our experienced advisers.
CHARGING ORDER
What is a Charging Order?
If you do not pay the amounts indicated by a CCJ then your creditors can apply for a Charging Order.
This is an order which places a “charge” on your home (usually) which means that the debt you owe will be secured against your property.
The result of this, of course, is that if you continue to fail to pay your debts, then your creditor will be able to repossess your home in order to have the money you owe them repaid.
If you do not pay the amounts indicated by a CCJ then your creditors can apply for a Charging Order.
This is an order which places a “charge” on your home (usually) which means that the debt you owe will be secured against your property.
The result of this, of course, is that if you continue to fail to pay your debts, then your creditor will be able to repossess your home in order to have the money you owe them repaid.
BAILIFFS AND OTHER
Bailiffs (and Other Options)
If a “warrant of execution” is taken out by your creditors then this will mean that they will have been granted permission by the court to hire bailiffs to take possessions from your home in order to pay off your debt.
This is described in more detail on the page, “Bailiffs” on this site. And for more information about what you can do to avoid having bailiffs called on you, contact us for free debt advice to deal with your debt problems.
It is also possible, if you owe more than £750 that your creditors can apply to have you declared bankrupt. This is an option which is not normally taken though as they would have to pay the fees connected with it.
It is also feasible for your creditors to apply to have your debt enforced by the high court. Another uncommon practice is to apply to have the money taken straight out of your bank account.
If a “warrant of execution” is taken out by your creditors then this will mean that they will have been granted permission by the court to hire bailiffs to take possessions from your home in order to pay off your debt.
This is described in more detail on the page, “Bailiffs” on this site. And for more information about what you can do to avoid having bailiffs called on you, contact us for free debt advice to deal with your debt problems.
It is also possible, if you owe more than £750 that your creditors can apply to have you declared bankrupt. This is an option which is not normally taken though as they would have to pay the fees connected with it.
It is also feasible for your creditors to apply to have your debt enforced by the high court. Another uncommon practice is to apply to have the money taken straight out of your bank account.
ATTACHMENT OF EARNINGS
What is an Attachment of Earnings Order?
If you fail to pay what you have been ordered by a CCJ, then a creditor can apply for an attachments of earnings order.
This allows your creditor to get what you owe them directly from your salary.
Before this goes ahead you will receive a form asking for your most recent wage slip, and if you do not provide it then you will be summoned to court. However, you can challenge this order by offering a monthly amount yourself instead. For more information on how to go about this, contact us for free debt advice.
If the order is granted then your employer will be contacted, and a certain amount of your earnings will be sent to pay your debts.
If you fail to pay what you have been ordered by a CCJ, then a creditor can apply for an attachments of earnings order.
This allows your creditor to get what you owe them directly from your salary.
Before this goes ahead you will receive a form asking for your most recent wage slip, and if you do not provide it then you will be summoned to court. However, you can challenge this order by offering a monthly amount yourself instead. For more information on how to go about this, contact us for free debt advice.
If the order is granted then your employer will be contacted, and a certain amount of your earnings will be sent to pay your debts.
CONTACT US
If you get in touch with us for advice on debt we should be able to come up with a debt solution that will avoid any court proceedings being taken by your creditors. It's best to contact us as soon as possible however, as the further advanced the proceedings are the less useful debt advice we will be able to give.