I hope you can help me as I haven’t found too much information out there as to what my situation is.
I have a few credit cards and an overdraft and my wife and I have two joint loans. We don’t own any property, in council housing, and my wife just recently lost her job. We had been struggling with paying the bills before she was made redundant but now we are in arrears with the credit cards and the one loan. The bank rings us daily asking for money we don’t have and today we received a statutory demand notice saying in 14 days or so they are going to take action.
What action are they going to take? My wife is scared to death bailiffs are going to show up and toss us out on the street.
Hoping you can help.”
I can sense form your question and wording it is a stressful time, and I’ll try to alleviate some of that stress by hopefully letting you know what may occur. Knowledge is power and also puts the lights on dark subjects we may not know much about.
The statutory demand notice is just a formal notice sent to you by the bank saying you owe them money, they want that money, and if you don’t pay up in the time it states, they will take further action.
It is the further action that needs to be outlined.
The bank may look to obtain a CCJ or County Court Judgment against you, and from there they could look at enforcing that judgment with bailiffs or a charging order against property. Since you have no property, they may opt for bailiffs. Which if they do send bailiffs, simply do not under any circumstances allow them in your property or to peer through your windows.
DO NOT LET THEM IN. Even if they ask to use the toilet. Do not allow them in. If they do not come in and do an accounting, they cannot come back to take stuff.
The other route a creditor could take is to make you bankrupt. But if they were to make you bankrupt, they pay the bankruptcy fees, and in bankruptcy all your accounts and debts are included, so the creditor who makes you bankrupt does not get favour. So in some instances, it is better for them to try and collect what they can, and not make you bankrupt.
Now this is not meant to be an all inclusive idea of what can occur, but it should give you some idea.
You alternatively could be pro-active and look in an IVA, debt management plan, or bankruptcy yourself.
I hope this helps.
Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.
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