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| Home What is an IVA? What to do next IVA FAQs Scottish Residents |
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Attachment of Earnings
Bankruptcy
County Court Judgment (CCJ)
Credit Reference Agency
Credit Score
Creditor
Debt Collection
Debt Management
Debtor
Insolvency/Insolvent
If you are not repaying debts as agreed through the Court your creditors can approach your employer to deduct payments. These payment instalments will be deducted before the employer pays your wages, and will then be used to repay your debts.
Bankruptcy
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.
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 often stop further 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 records for a period of six years.
Credit Reference Agency
Credit reference agencies hold information about you and the way you manage your credit commitments. Any problems will be recorded and could make it more difficult for you to get credit in the future. Each reference agency will supply you with a copy of the information it holds about you upon payment of a fee. You will 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.
Credit Reference Agencies:
Credit Score
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 having a regular job, having lived for a long time in your present home and the like. 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.
Creditor
Someone – an individual or an organisation – to whom you owe money.
Debt Collection Agency
This usually refers to an organisation that has been appointed to collect money you owe to 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.
Debt Management
Debt management companies will help you to manage your debt payments and deal with your creditors.
Debtor
Someone who owes money.
Insolvency/Insolvent
Being unable to repay your debts.
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