Dealing with Debt

• 01. Introduction

• This leaflet explains your legal rights when you have debts, and the protection you have from people who are demanding money from you. You can download the PDF from the Community Legal Advice website using the link below: ...

• 02. Rent or Mortgage Payment Problems

• If you have missed your rent or mortgage payments, landlords and mortgage lenders may have the right to evict you. But the procedure for doing this, called 'possession proceedings' is quite long, and you should have enough time to come up with a plan to make...

• 03. Council Tax bill problems

• If you haven't paid your Council Tax, the council will make an application for a 'liability order' in the Magistrates Court for arrears of Council Tax. If the court grants the liability order, it will mean the council can: use bailiffs to get the money...

• 04. Hire Purchase (HP) problems

• If you buy goods such as cars or furniture under hire purchase (HP) or a similar scheme, known as a 'conditional sale agreement', you don't own them until you have made the final payment. Until then, they belong to the creditor (the finance company). If...

• 05. Gas, electricity and phone bills

• Gas, electricity and phone companies can disconnect you if you haven't paid your bills, without having to go to court. But they should give you written notice that they will disconnect you. Gas and electricity companies must also take notice of customers...

• 06. Water bills

• Any debts to water companies are treated differently from money owed for gas, electricity and telephone bills. It is illegal for a water company to disconnect you for missing payments. The only way they can force you to pay is to get a 'money-only' county...

• 07. Loan and credit problems

• Most loans that you have which aren't on a hire-purchase agreement, and aren't secured on your home, are what are called 'regulated' credit agreements. If you have several debts, any loans are 'non-priority' debts. This is because you can make an arrangement...

• 08. Dealing with many debts

• If you have many different debts, there are several ways, using the courts, that you can sort things out yourself. Administrative orders If you have at least one High Court or County Court Judgment (CCJ) against you, and your total debts are no more...

• 09. Dealing with bailiffs

• With most debts, baliffs are only involved if you can't come to an arrangement to repay your creditors, and then only after your case has been to court. But once baliffs are involved it can be difficult to stop them - although this doesn't apply to county...

• 10. Other legal protection if you are in debt

• There are several laws and regulations designed to make sure that any credit deals you sign up to are fair, and any organisations you owe money to behave reasonably. Unfair credit agreements Parts of the Consumer Credit Act allow a court to rewrite...

• 11. When you can be in prison with debt

• Being sent to prison is a great fear for many people with serious debts. In most cases, it's not very likely, since a prison sentence is only a last resort, and apart from faud (see fraud below) it can happen only for three types of debt. They are for when: ...

• 12. Terms used when dealing with debt

• There are several words and phrases that you may come across, from credit providers, the courts or bailiffs, for example, when you are in debt. Administration order When you make a single payment (or series of payments) to the court,...

• 13. Further Help

• Citizens Advice Your local Citizens Advice Bureau is listed in the phone book The website of Citizens Advice Advice UK (formerly Federation of Independent Advice Centres phone: 020 7407 4070 ...

• 14. About this leaflet

• The leaflets in this series give you an outline of your legal rights. They are not a complete guide to the law and are not intended to be a guide to how the law will apply to you or to any specific situation. The leaflets are regularly updated but the law...