General Debt FAQs
Will I lose my job for getting into debt?
In most sectors you are advised to speak to your HR department for guidance. If you work in financial services then you may be able to continue employment however if you work in the HM Armed Forces or the Police force you may lose your job if you are in debt.
Will I go to prison for being in debt?
This is extremely unlikely unless you have been involved in fraud or you haven’t paid fines from the Magistrates' Court, your Council Tax or business rates or Maintenance for your husband, wife or children.
What are the different types of debt?
There is a whole host of different types of debt. The most typical include debts associated with: credit; business; TV license; child maintenance arrears; council tax / poll tax arrears; hire purchase payments; income tax and VAT arrears; Magistrates' Court fines; water rates arrears; and gas or electricity arrears.
Will I be able to get a mortgage in the future?
Most lenders will not able to offer you a mortgage if you are in debt or have adverse credit. However, an adverse credit lender may be able to help.
Can I get a bank account?
You should be able to get a basic bank account that provides all you’d need however you may struggle to get an account that offers credit facilities such as overdrafts.
What should I do if I’m threated with the bailiffs?
Firstly, try and negotiate with the company as they may agree to you paying weekly or monthly. If that doesn’t work they will issue a warrant of execution from the courts so they can send in the bailiffs to remove property from your home. They are not allowed to break in and can only be allowed in by yourself or gain ‘peaceful entry’ through an open door or window. They cannot take basic clothing, bedding, furniture or household goods. Anything they do take will be sold at auction in order to pay off your debt.
Will my debts be wiped out when I die?
No, they will be taken from your estate before the remainder is passed on to your beneficiaries. If you owe more than your assets they will get nothing, however they will not be asked to pay anything on top of that.
Can my debts be written off on the grounds of hardship?
If there is little prospect of an improvement in your situation, creditors may agree to write off some or all of the debt, either formally or informally. This may occur if you have long-term ill-health, are elderly or vulnerable. Of course, this will all need to be proven. Even if you are able to pay a small amount on a regular basis, you could propose for this to continue for a few years before the remaining debt is written off.
How can I go about seeking professional help?
There are a number of professional companies who help and advise people with debt problems, often offering services that are free-of-charge. Simple Financial Solutions are such a company and can offer expert guidance on a range of finance issues including IVA, Debt Management, Scottish Trust Deeds, Bankruptcy, Sequestration, PPI, Mortgage and Bank Charge Reclaims, Loans, Mortgages and Re-mortgages and Pensions. For an informal, no obligation discussion about your current financial situation, call us now on 0800 043 2027.