Debt Advice - CCJs and Bailiffs

Need free debt advice?

• Are you experiencing severe financial pressure?
• Are your creditors threatening to take action against you because you cannot pay your bills?
• Have legal proceedings already been issued against you?

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If the answer is YES to any of the above questions, it is vital that you seek professional debt advice NOW.

ClearDebt’s team of specialist financial advisers have years of experience in dealing with people with debt problems just like yours.

There are a range of solutions which can turn what looks like a no-hope situation into a resolvable issue. But the success of such solutions means acting as quickly as possible.

Below you will find information about some of the more severe pressures you may be facing and what they might mean for you. You will also find information on IVA interim orders which can provide you with short term protection against legal proceedings whilst you propose an IVA that can be put to your creditors.

But above all else, contact our financial advisers NOW and seek immediate, free and independent debt advice. Call ClearDebt free on 08000 192 095.

Comparison of debt options

It can sometimes be confusing when considering different debt solutions. The following comparison table should help clear things up.

Question	IVA	Debt Consolidation	Debt Management	Bankruptcy
Will my debts be wiped clear within an agreed period?	yes	no	no	yes
Will interest be frozen?	yes	no	no	yes
Will charges stop?	yes	no	no	yes
Will my monthly repayments be reduced?	yes	maybe	yes	yes
Will I be protected from unsecured creditors?	yes	no	no	yes
Can I keep my house?	yes	yes	yes	no
Are all creditors legally bound to write off debt I can't afford?	yes	no	no	yes
Will creditor action stop?	yes	no	no	yes
Will my credit-rating be damaged?	yes	maybe	probably	yes
Is it a confidential procedure?	yes	yes	yes	no
Will I avoid the stigma of bankruptcy?	yes	yes	yes	no
Is the procedure dealt with by a professionally qualified and licensed specialist in personal debt?	yes	no	sometimes	yes

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Debt Advice - Interim Order

Interim Order

If you are experiencing significant and immediate pressure from your creditors, such as threats of legal action or bankruptcy proceedings, you may well benefit from the protection of an Interim Order.

An individual who is intending to propose an IVA can apply for an Interim Order with the assistance of their nominee.

An application for an interim order is made to the court which requests that you are given a period of time (usually 28 days) within which to make a proposal to your creditors.

If granted, the interim order basically prevents all creditors from pursuing any legal proceedings against you. If legal proceedings have been commenced, then they are frozen at the stage they have reached.

During the period when you have interim order protection your creditors can then consider whether or not to agree to the terms you have proposed.

You should note that it is only possible to apply for one interim order during a 12-month period.

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Debt Advice - CCJs

CCJ’s are issued by the Court on behalf of a creditor who is pursuing you for unpaid debts you owe them.

The creditor will usually have pursued you already via debt collectors and having failed to reach a satisfactory agreement for repayment with you, will then have gone to Court and obtained the judgement or CCJ against you.

Details of this judgement will be added to your credit record once issued by the Court and will be a black mark on your credit status. This may result in you being refused credit or being charged a higher amount for future borrowing.

If you have received a CCJ but have had no notice of intended Court action from the creditor then you can apply to the Court to have it cancelled and removed from your records.

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Bailiffs: the law and your rights

A bailiff is a person authorised to collect a debt for a creditor. They must have what is known as a warrant or a warrant of execution (issued by the Court) to collect a County Court Judgement “CCJ” debt .

What do I do if a bailiff calls?

• First DO NOT invite the bailiff/person into your house. They may ask if they can discuss things inside your home or they may try and march in as soon as you answer the door. As with any stranger, always answer the door with the chain on.
  
• All bailiffs should carry identification. Always ask for it and for a copy of the warrant they are collecting. Some creditors will send people around to your house who are not bailiffs to try and secure payment from you.

Can a bailiff force his way into my home?

• A bailiff cannot use force to gain access to your home. They can only enter via what is known as peaceful entry. Entering through an unlocked door or window this would be allowed as peaceful entry. Pushing their way past you at the front door is forceable entry and is not permitted.
  
• Bailiffs should know these rights but you should be aware they may try to gain entry by asking you to let them come in to discuss things.

What will happen if I let the bailiff enter my home peacefully?

• If the bailiff has been allowed in peacefully they have the right to search your house. They can even forceably enter locked areas. They will look for any property of value which they can take away and sell to pay your debt.
  
• They will usually list the property they want to take or clearly mark it as property they have seized. They can then leave someone in your house whilst they arrange to collect the property or more usually they will ask you to sign a "walking possession agreement".
  
• This means that you agree not to remove these goods and that you acknowledge they now belong to the bailiff. He will then usually advise you that he will return to collect the goods for sale or you agree with him a schedule for paying him the money you owe.
  
• Your goods are also likely to be sold at auction where they may be sold for as little as 10% of their cost. So you should be prepared that ,for any given debt, they may seize goods of substantial original cost.
  
• In addition to the original debt and court costs, you will usually have to pay for each visit the bailiff makes. So if they return at an agreed date and you are not there your debt may increase substantially with their costs.
  
• Remember that once the bailiff has entered peaceably they then have the right to force their way in to collect the goods at a later date.

Is there any property in my home a bailiff is not allowed to seize?

• A bailiff is only allowed to seize goods that you own. They will usually assume everything in the house is yours and it will be up to the owner of the goods to prove to them that they are not yours. If you have receipts or rental agreements which show the goods are not yours it is much simpler to show the bailiff them before they have seized them.
  
• If the debt is rent arrears they may seize property in your home even if it does not belong to you.
  
• Finally, a bailiff cannot seize any tools, equipment or vehicles used by you in your employment , trade or occupation. They also cannot seize property used by you for your basic living needs and those of your family. This includes things like your fridge and cooker and clothing. They must also leave you with at least one TV although additional TV’s and things like DVD players can be taken.

Can I remove or hide goods from a bailiff?

• It is not illegal to do this before a bailiff arrives unless the debt is for rent due. Remember that once a bailiff has gained peaceable entry they can come back at anytime to look for more goods they may think you have in your house.

Who pays for a bailiffs visit and how much do they charge?

• The costs of a bailiff are added onto your debt. If you think the bailiffs costs are unreasonable you can ask a Court to review them to see if it agrees.
  
• Remember each visit will result in additional costs being added to your debt each time. So a small debt such as a parking ticket could end up costing you hundreds of pounds to pay off.

What happens if a bailiff does not gain entry to your home?

• The bailiff will usually keep visiting your home and if they are unable to gain entry the warrant for the debt will be eventually be returned to the Court. They will advise the Court that they have been unable to gain entry or that you have insufficient goods to pay your debts and the bailiffs costs in full.

Is a bailiff allowed to visit my home at anytime of the day or week ?

• If the debt is in respect of rent then they are only allowed to visit during daylight hours. For any other debts bailiffs should call at a “reasonable time of day”.
  
• If you are unhappy with the times at which they call you should take their details and contact the persons who instruct them to complain. Often bailiffs belong to an association or trade body and it may be possible to complain to them.
  

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Citizens Advice about Final Demands

Debt Advice - Final Demands

A final demand is usually a letter sent by the creditors you owe money to demanding payment -usually within 7 days before they take further action.

You should not ignore a Final Demand letter and should always contact the creditor immediately to avoid them taking further action. If you ignore it and they issue proceedings against you they will usually add their additional costs onto the amounts you owe.

What you should do if you receive a final demand letter.

Firstly you should check the amounts they are claiming. If you disagree with what they say you should contact the creditor immediately to explain that you do not agree with the amount owed. You should ask them not to take any further action until the amount owed is agreed.

If the amount they are claiming is correct you should contact the creditor immediately and explain why you have not paid the sums due. They will usually be sympathetic especially if you agree to start repaying the debt in instalments over a period of time. Try and reach a sensible agreement with them that you know you can afford to keep – as to break a further promise of payment may result in them taking further action. What you are doing here is known as self debt management.

If you cannot agree a suitable repayment plan with the creditor then you should seek immediate advice to avoid matters getting worse.

You can contact ClearDebt to seek help by e-mailing us now with a contact telephone number and a preferred time for us to call you between 8.30 am and 8pm Monday – Friday. We will call you straight back if we can.

Alternatively take our ClearDebt analyser quick test now by clicking here and you will receive a free report on the options available to you to solve your debt problems. You can have an answer in less than 2 minutes.

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Links to related ClearDebt articles:

Bailiffs: the law and your rights
Debt Advice
Citizens Advice - Debt Advice - IVA
Citizens Advice about Final Demands
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