Debt Law
Debt Law - Know the facts!
Know the law and know your rights when facing debt problems
There are many steps a creditor can take to recover a debt.
All of them are regulated by Laws governing what they can and can’t do.
But one of the best steps towards preventing a creditor from taking you to court is to contact Accuma and let us help you solve your debt problems before they get too serious.
County Court Judgements (CCJ's)
If a creditor decides to take legal action to recover a debt, the action will take place in the County Court. What happens then depends on the 'track' the case is allocated to.
Claims that have a financial value of not more than £5,000 will be allocated to the small claims track.
The hearing will be informal, fair and a reason for the courts final decision will always be given.
This is the normal track for a claim that isn’t handled by small claims and which has a financial value less than £15,000 and when the trial is expected to take less than a day.
The Multi-Track
The multi-track is for cases which can’t be dealt with by the small claims and fast track courts.
Who can take you to court?
In general, any individual, partner, firm, company, or trustee can use the county court to try and recover any debt they are owed.
Appeals to the Court of Appeal
Anyone involved in a County Court case that is dissatisfied with the outcome can usually appeal to the Court of Appeal.
Enforcement
A County Court’s decisions may be enforced in a number of ways:
(1). By warrant of execution allowing the debtor's goods to be seized.
However, things like tools, books, vehicles and other equipment needed to run a business and everyday items such as clothing that are necessary for a basic living are protected from being taken.
(2). By making a charging order.
This puts a charge on any property belonging to the debtor, so that any money made from a sale can be used to repay the debt.
(3). By appointing a receiver.
(4). By an earnings order.
This is an instruction by the court to the debtor's employer to make deductions from the debtor's earnings and pay them to the court.
(5). By making a garnishee order.
A third party (the garnishee) is ordered to pay back the debt.
Bailiffs and Debt Recovery
As a last resort a court can send a bailiff in to seize a debtor's possessions.
Generally Bailiffs can’t break into your home. Instead they have to gain peaceful entry. But they can still climb over a fence or gate, get in through an unlocked door or climb in through an open window.
Bailiffs can take any possessions belonging to a debtor in order to recover a debt. But they can’t take things like tools, books, vehicles and other equipment needed to run a business and everyday items such as clothing that are necessary for a basic standard of living.
