This section explains what happens when you don't pay debts like bank and building society loans, credit card debts, pay day loans, council tax and utility debts.
If you owe money and don't pay it back, the people you owe money to will usually start proceedings against you to recover the money.
The action that they takes depends on the type of debt and who you owe the money to.
Below you will find a summary of each type of recovery action and links to detailed explainations.
If you have are struggling to repay your debts, it is vital that you take action quickly, as the longer you leave it the worse the situation will be. Your debts will not go away, but if you take action then we can help you make them manageable and help you get your finances back on track.
Our friendly experts are on hand today to provide confidential advice and start you on the first steps to get out of debt.
Take our debt test to find out how we could help >
A Statutory Demand is a formal document which can be issued if you have failed to make payments to a debt. This is the first step of the legal process a creditor may use to make you bankrupt to recover their money.
Read our full guide to Statutory Demands...
When you are declared bankrupt, you surrender all your assets, i.e. possessions of value, including any interest in your home.
The Trustee must be informed of all assets, it is their decision as to what you can keep. They will arrange for their sale, using the proceeds to pay the fees, costs and expenses of the bankruptcy, before paying the creditors.
Part or all of your pension may be claimed by your trustee in bankruptcy, whether you are receiving it now or it is due in the future.
When he or she has all the information about your pension, the official receiver or your trustee will be able to tell you what part, if any, of your pension is being claimed as an asset in your bankruptcy.
At your bankruptcy hearing, a district judge will consider the bankruptcy petition to decide whether or not to make a bankruptcy order. Once a bankruptcy order is made, you are then officially bankrupt.
You and the Official Receiver attend the Bankruptcy Hearing. Creditors can also attend the bankruptcy hearing if they wish.
The Official Receiver is a civil servant in The Insolvency Service and an officer of the court. He (or she) will be notified by the court of your bankruptcy. He will then be responsible through his staff for administering the initial stage, at least, of the insolvency case. This stage includes collecting and protecting any assets and investigating the causes of your bankruptcy.
Our panel of specialists can quickly advise you of your options if you are considering going bankrupt. Simply call the team on 0800 088 2208.
Alternatively take the online bankruptcy test and find your best solution.
I Contacted them at 5 pm on a Thursday night,they arranged a meeting Friday morning with all the relevant bodies their because my case was the following Monday .I can't sing their praises high enough they contacted the courts same afternoon. Fantastic response, I avoided bankruptcy on the Monday and was given time to arrange an Iva. I risked losing my home,my mother and fathers home all hope seemed lost until I made that fateful phone call. I can now sleep at night.
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