Friday, 10 July 2009

Apply for a debt management plan before the bailiffs come

posted by debts.org at 04:40

The biggest problem for people in debt is facing their debt problems head-on and not ignoring bills and phone calls from your creditors. The sooner you acknowledge the extent of your debt problems, the easier it will be to help yourself. You can arrange a debt management plan with debts.org which will pay off your creditors and give you peace of mind into the bargain.
If you ignore your debts, you could end up with the bailiffs at the door, or literally, smashing through the door to remove your cash/assets to cover some of the debts you owe.

What to do if the bailiffs come

Due to the credit crunch, fines and debts worth millions of pounds are going unpaid every year in the UK, and bailiffs are busier than ever. If your debts are mounting up, stop the bailiffs visiting you by contacting debts.org who can discuss a debt management plan with you. If you are having problems paying a fine or outstanding debt, contact the court or relevant organisation and try to negotiate with them. If you are slow to contact them, or make no contact at all, they will assume you have no intention of paying. The debt could then be passed to a debt collection agency, or a warrant could be issue by a court to authorise bailiffs to try and recover the debt. Debt management plans work best for you if you contact debts.org as soon as possible, when you realise your debts are spiralling out of control.

How to pay a bailiff to cover your debts

If you don´t address your debts in time, and you have major debt problems, particularly with fines, a bailiff will try to recover the money from you. You will be asked for a secure method of payment, including cash, debit or credit card, but bear in mind you will have to pay a handling fee if you pay by credit card. There will also be an additional fee if a bailiff has to visit your home to recover the debt, and this fee is set by the court.

Are bailiffs allowed in my house?

Controversially, since 2004, bailiffs have had the legal right, in some circumstances to force entry to private homes to seize goods or money owed. This can apply if you owe fines, fixed penalties, or tax arrears, and is enforced by a magistrates court. Bailiffs do not have the right to force entry to your home for debts of any other nature. Bailiffs are only allowed to take your belongings if they have proper written authority, such as a warrant issued by a court, or in some cases, a creditor.

Advice about goods removed by the bailiffs

When bailiffs take your belongings, the company/authority you owe money to can sell your goods at auction to recoup some of the money they are owed. Basic household items however, such as beds and clothing should not be removed. Extra fees will also be added for moving, storing and selling your goods. The rules on bailiffs are complicated and vary widely depending on how much the debt is, and who you owe it to. Never ignore demands for payment of fines and fixed penalties, as there are always opportunities to negotiate. Contact your local Citizen´s Advice Bureau for specific advice about your circumstances if you fear the bailiffs may be paying you a visit.

If you are in debt and feel there is no way out, debts.org can help arrange different options to help you get out of debt. Avoid the bailiffs by arranging a sensible debt management plan or Individual Voluntary Arrangement with debts.org to solve your debt problems.

Labels: bailiffs