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Types of Debts and Bailiffs
Author: Den BraunThis information gives you basic advice about debt and simple guidelines for dealing with money problems. It is necessary not to panic about debt problems but also not to ignore them. Before you can tackle a debt problem you need to collect all the information about your money affairs.
Usually the first advice you are given when being in debt is to make a complete list of your debts. What is necessary you should divide them into priority and non-priority debts because you will have to make offers to pay off your priority debts before you tackle your non-priority debts. Priority debts are debts owed to creditors who can take the strongest legal actions against you if you do not pay. It is not the size of the debt that makes it a priority, but what the creditors can do to recover their money. Here are some examples of priority debts: mortgage arrears (the mortgage lender can take court action for possession of your home), rent arrears (the landlord can evict you if you have rent arrears), income tax and VAT (you can be made bankrupt or imprisoned for non-payment of income tax and VAT), different fines, maintenance (child support), council tax, fuel debts, hire purchase (if the purchased goods are essential for you). If you have any of these debts, you must deal with them before you offer to repay any of your non-priority debts.
Examples of non-priority debts are credit cards and store cars arrears, catalogue arrears, bank overdrafts and loans, benefits overpayments, hire purchase (if the purchased goods are not essential for you), money borrowed from family or friends. You cannot be imprisoned for not paying non-priority debts. You cannot lose your home or your essential goods. But if you make no offers to pay and you do not explain why, the creditors will take you to court. If the court has ordered to pay the debt and you still fail to pay it, the creditors can get another court order allowing them to send bailiffs in.
What can you do if you are threatened with bailiffs? The first thing to do is to try and negotiate with the company. Even if you can't pay the debt in full, you could try to agree a set amount to pay weekly or monthly. If you cannot come to an agreement with the company, they will need to get a warrant of execution from the courts before they can send in the bailiffs to remove property from your home in payment of your debt. If they already have the warrant, you should apply to the court to have it suspended. If the bailiffs arrive, you do not have to let them in and they cannot generally force their way in. However, they are allowed into your property without your permission if they can enter without breaking in. This is called "gaining peaceful entry" and includes getting in through an open window, or a closed but unlocked door. Bailiffs are not allowed to take basic clothing, bedding, furniture or household goods, and any goods they do take will be sold at auction in order to pay off your debt. The rules about bailiffs are complicated, and it is always sensible to get advice from a specialist adviser.
Article Source: http://www.articlesbase.com/debt-consolidation-articles/types-of-debts-and-bailiffs-108334.html
About the Author:Den Braun is an expert in finance. The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. Den Braun writes about Debt settlement & debt negotiation and other related topics on the debt-settlement website.
To learn more about debt and finances in general, visit http://www.debt-settlement.ws
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Keywords:
debts debt bailiffs nonpriority arrears take goods court priority mone