General information

Not all debts are equal in terms of significance and consequences. You should be aware of the different options you have for dealing with your debts as well as the different types of debt. Some debts should be dealt with immediately, these are known as priority debts.

For non-priority debts, depending on the nature of the debt, you may be able to:

  • Challenge the debt: Some debts may be unenforceable due to defects in the credit agreement, or statute barred, meaning they cannot be recovered through the courts system. In other cases you may want to dispute the amount or ask for documentation or more information.
  • Offer a monthly amount you can afford to repay the debt, and ask your creditors to freeze interest and charges.
  • Offer token payments for a certain period of time, while your circumstances improve.
  • Ask your creditors for a payment holiday or to hold off action while you overcome a situation such as illness, divorce or unemployment.
  • Ask your creditors to write off the debt if your circumstances are not likely to improve.
  • Set up a debt management plan to make pro-rata repayments
  • Offer a lump sum in full and final settlement to settle a debt for a reduced amount.

In certain cases, you may need to look into a formal debt solution such as bankruptcy or a DRO.

Although debts subject to a judgment (CCJs) are not generally regarded as priority debts, it is important to be aware that failing to keep up the agreed repayments can result in enforcement action on the part of the creditor. If you are not able to maintain your current level of repayments into a CCJ, you should apply for a variation of the installment order.
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Always deal with priority debts first. If funds are limited, non-priority creditors can wait!
If you have received a claim, you need to act promptly to avoid default judgment.
Go to the claims area.