People who are in debt and searching for a solution will frequently ask similar debt advice questions. We’ve listed some of the most frequent questions and answered these too.
Every person in debt will have a unique situation so the answers to the debt advice questions below may change depending on a person’s financial circumstances.
Debt Advice Questions
Can I Write Off My Debt?
The main objective when helping people deal with their debt isn’t to have it written off, but to get out of debt as effectively as possible. For some people they want to repay all of the money they borrowed, while other people may not be suitable for a debt solution where some of the money is written off. In some cases the only option someone may have is to declare themselves bankrupt, but there are consequences to entering this debt solution.
Can I Go To Jail For Debt?
No. Although some people have been sent to jail for refusing to pay their council tax, this is only due to them refusing to pay rather than being unable to pay it. If you fail to follow a court order you can be sent to prison but this is for failure to comply with a court instruction, as opposed to being in debt.
How Can I Get Interest & Charges Frozen?
Sometimes a creditor will freeze interest and charges when a customer comes to an arrangement to repay their debt. If a creditor doesn’t freeze interest and charges there are some debt solutions which guarantee to freeze interest and charges. Debt solutions such as an IVA or Trust Deed in Scotland are two examples of these types of solutions.
What Can Creditors Do To Me?
How much assets, income or savings someone has can determine what creditors are likely to do. A creditor can apply to have someone declared bankrupt, arrest wages directly from an employer or instruct debt collectors / sheriff officers to act on their behalf to recover the debt.
How Can I Stop Bailiffs?
The first step in stopping bailiffs from taking any action is to either repay the debt or come to an arrangement with them. If this is not possible then a debt solution may be required. Some debt solutions will stop bailiffs from taking action, depending on how quickly people react.
Is My Home At Risk From Debts?
If your home has equity in the property and you have not sought debt advice then your home may be at risk. Creditors may decide to go to court to secure the debt against the property and possibly force the sale of your asset to get their money back. If you seek debt advice then you will get specific information about whether you can protect your assets from your creditors.
Am I Responsible for Partners Debts?
No. Debt is something which is personal so only those who are named on the debt can be held responsible for it. If you have any joint debts then both parties are equally and fully responsible for the total amount of money outstanding.
Does My Partner's Bankruptcy Affect Me?
This will depend on whether someone has joint debts or assets with their partner. When someone is declared bankrupt the official receiver / insolvency practitioner is responsible for selling assets to recoup money for creditors. If someone has a joint asset with anyone who is bankrupt the official receiver could demand half the equity from the asset is paid to the debt. This could be done by selling the asset and taking half of the equity from the sale or coming to another arrangement.
If you can’t find the answer to the question you’re looking for please feel free to use our debt advice forum or contact Debt Support Trust on 0800 085 0226.