Debt Advice Trust Blog

Facing demands for repayment of outstanding debt can be a terrifying time for many ordinary people. Daily deliveries of final demands, letters from debt collection agencies and solicitors can send you spiralling into a nightmare scenario with no apparent way out. But before you start panicking, it’s important that you know your rights and understand that there is a great deal of sound debt advice available to you for free.

Even those in extreme financial trouble still have rights. Since 6^th April 2009, borrowers who get in touch with an accredited debt advisor must by law be given 30 days’ breathing space by their creditors. The new rules, agreed by the government and the Credit Service Association (CSA), which represents debt collection agencies, mean creditors cannot pursue any money owed for 30 days. It is hoped that this breathing space will give people time to work with debt advisors to find a solution to repay their debt. This breathing space could be the lifeline you need if you’re in financial trouble. It gives you the chance to get debt help from a professional and impartial advisor and to try and take back control over your finances. If you’re facing mounting debts, it could also give you the opportunity to consider an IVA debt solution or other debt management system.

One of the greatest worries for those in debt is the knock of the bailiff at the door. But even here, you have rights. If you have been issued with a County Court Judgement (CCJ) and your creditor has a warrant of execution against you, then you can ask your local County Court for an N245 form. This is a realistic offer to repay the debt. If accepted, this will suspend the warrant so long as you keep up to date with the agreed payment terms.

These are not ‘delaying tactics’ – these are realistic methods of keeping the situation under control and exercising your rights as a consumer. Make sure you read the small print on all your credit agreements and, as always, if you’re unsure as to your rights, contact an impartial debt advisor who will be able to help you.

Tags: Debt advice, Debt management, iva

This entry was posted on Wednesday, October 28th, 2009 at 2:58 pm and is filed under Debt advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.