Debt help glossary
Attachment of earnings, Bankruptcy, County Court Judgment (CCJ), Credit Reference Agency, Credit Score, Creditor, Debt Management, Debt Collection, Debtor, Insolvency/Insolvent.
If you are not repaying debts as agreed through the Court they can notify your employer to deduct a certain amount before paying your wages which will then be used to repay your debts.
If you are unable to repay your debts it is possible for you to be declared bankrupt. In this case any assets you have can be used to raise money which is then distributed to your creditors. If you are a homeowner it is likely you will be expected to sell your property.
Creditors may take court action if they have problems communicating with you or getting you to make payments off your loans. This will usually result in additional costs being added to your debt. After considering your circumstances the Court will usually stop interest being charged and agree a regular amount that you should repay and this will be reflected in the Judgment(s). A CCJ will normally be recorded on your credit record for a period of six years.
Credit Reference Agencies are supplied with information about you including the way you handle your existing debts. Any problems will be noted and could stop you getting credit in the future. Each reference agency will supply the record it holds about you for a small fee but you need to supply your name and all addresses at which you have lived in the past six years. If the information is inaccurate you can insist on a correction.
When you apply for credit, a mortgage or even to open a bank account, you may be credit scored. Points will be awarded for previous good credit handling, and you will also benefit from a good job and having lived for a long time at your present address. If you do not meet a minimum “score” you will be declined. Companies do not have to explain why they have turned you down but must give you details of any credit reference agency they have used.
Someone – an individual or an organisation – to whom you owe money.
This usually refers to an organisation that has been appointed to collect money you owe another firm. In some cases such an organisation will actually “buy” your debt and so replace the firm to which you originally owed money. Some may call at your home but there are laws governing what action they can take.
Usually refers to a firm that will help you to deal with all your creditors.
The individual(s) owing money.
Unable to repay debts.
- Debt Management Programme
- Individual Voluntary Arrangements
- Trust Deeds for Scottish residents
- Bad credit bank accounts
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