What happens if you dont pay debts

Debt has a procedure, when you are in a difficult situation and cannot afford to make payments then eventually you will fall behind and start to miss your payments. Let’s have a look at the creditor side action that can be taken against you and analyse the protocols of creditors and debt collection companies if you don’t pay your debts.

From the time you start miss payments.

Here creditors will send you a letter to remind you that payments are being missed and that you should call them. If you decide to ignore this see section 1(a) if you respond to this letter see section 1(b)

1a. if you ignore this letter chances are you will receive more letters and have unnecessary charges put on your account which will increase the balance.

1b. if you respond to the letter you will be asked to either make up your missing payments or bring the account up to date.

Can’t afford to pay your creditors

If at this stage you feel payments cannot be made due to financial difficulties then the debt will be passed on to either a third party debt Collection Company or an internal debt management company. You may also find that charges have been applied on your account further increasing the balances.

What will debt collection companies do?

Debt collection companies normally buy debts or collect debts and apply their charges, either way your balance will increase. You may receive letters from these companies demanding full payments and threatening legal action. These companies have to follow guidelines and cannot act as though they are some kind of legal authority.

When debt collection companies make contact with you, they will first ask for a full balance. If you are unable to meet this demand then they will ask for you to pay a specific amount each month. This amount again may seem unrealistic considering that you have other creditors to pay. Finally they would ask for you to complete an income and expenditure form and further ask for a specified amount each month from you.

Unable to meets the demands of a debt collection company or ignore their letters and phone calls.

If you are unable to meets the demands of a debt collection company then you may receive letters threatening court action. However the debt is normally sold on to another collection company who then applies further charges which consequently increase your outstanding balance. This process of your debts being passed to various collection companies is a normal procedure as each company ends up applying further charges on to your debt.

Received a letter from a solicitor?

If all attempts of collecting monies form you fail by a debt collection company or an internal debt management department then you may receive a letter from a solicitor. If this is the case then the debt has been past to a litigation department. The solicitor will make a final demand before preceding a county court judgement also known as a CCJ.

Received an N9a form what should I do?

If you receive a letter from the court such as a N9a form then it’s important that you act immediately and complete the form. This form normally asks for details of your income and expenditure. When returned the court then applies a monthly amount which you need to pay without fail. If you don’t complete the form properly then there are chances you may end up paying too much on your CCJ. For a free help with completing your CCJ N9A form please contact us on 0161 244 56 49