Information on Debt |
| In today's world, credit is everywhere - from your bank to the local furniture store. Credit allows people the opportunity to do and own things that they otherwise may never to be able to, but credit also has its disadvantages. Someone's credit to you is your debt to them, and you are legally obliged to pay it back, usually within a certain period of time. If you do not do so, for whatever reason, you run the risk of having legal proceedings taken against you.
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| What should I do if a solicitor sends me a letter of demand? "One of the most common reactions to a letter of demand is to ignore it, in the hope that the issue will somehow miraculously disappear. But this is almost never the case, and the very worst thing you can do is to ignore a letter of demand. The best solution is of course to pay your debt immediately, to avoid facing a court case that will demand much more financial input on your side. If you are not in a position to pay all the money right away, the next best option is make a request to pay the money off in instalments". |
| What should I do if legal proceedings are begun against me? "If you are served with a court order, once again the worst thing you can do is ignore it. It may still be possible to agree to pay the debt through instalments, either directly to the creditor or through the court office, and in this way you can avoid the extra costs associated with a court case. If there is a valid reason that you have not paid the debt (for example you never received them), you can lay a counter claim against the creditor". |
| What if I am owed money and the debtor is refusing to pay? "You should start off by sending the debtor reminder letters and copies of accounts rendered. If you receive no response, the next step is to apply for judgement from a court or tribunal against the person owing you money. However, you need to carefully consider the costs of legal proceedings, and decide if it is worthwhile paying these in order to get the debt back. If the debt is extremely small, or if the debtor will be unable to pay regardless, there is not much point in wasting your time and money on going to court." |
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